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Wishbone Gold PLC RNS Release

Honduras Mining Joint Venture


RNS Number : 1637B
Wishbone Gold PLC
31 March 2017
 

 

 

 

31 March 2017

Wishbone Gold Plc

("Wishbone Gold" or the "Company")

Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources

 

Honduras Mining Joint Venture

Wishbone Gold plc, the trading and exploration company focused on precious metals (gold and silver), today announces it has signed a joint venture agreement through its subsidiary, Wishbone Gold Honduras Ltd ("Wishbone"), with SION Honduras SA ("SION"), to fund the development and exploitation of existing gold mine sites in Honduras. SION is an associated company of Scotia International of Nevada Inc, a privately-owned mining equipment supply company based in the United States of America. SION has an agreement with the Honduran government to modernise and expand the Honduran mining industry.

 

The agreement provides that Wishbone and SION will provide equipment and expertise to existing small mines in Honduras to enable them to increase production. In return, the mines will agree to supply Wishbone's trading subsidiary Black Sand FZE with all the output from the mines at preferential prices.

 

The benefit to the mine is that the increased production means higher sales and higher profits. Wishbone and SION obtain security of supply at preferential prices and the Honduran government is guaranteed that all taxes will be paid by the mines.

 

The aim is to recover each investment within twelve months. Thereafter the margin remains shared equally with SION. The agreement runs for 30 years.

 

Richard Poulden, CEO and Chairman of Wishbone Gold commented: "Working with SION in this way implements Wishbone Gold's strategy of reverse integration into the small mining sector around the world. This secures supply and increases margins. The investment will enable exploitation of the substantial base of small mines in Honduras and will lead to an increase in output from these sources. All gold mined and recovered from these sites will be sold through Wishbone's trading subsidiary Black Sand FZE."

 

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  www.wishbonegold.com

For further information, please contact:

 

Wishbone Gold Plc


Richard Poulden, Chairman and CEO

Tel: +44 207 812 0645

Allenby Capital


Nick Naylor / Nick Harriss / James Thomas

Tel: +44 20 3328 5656

Beaufort Securities


Elliot Hance

Tel: +44 20 7382 8300

Damson Communications


Amelia Hubert

Tel: +44 207 812 0645

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Wishbone Gold PLC Timeline

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February 09 2017

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