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0.014 are up~
GNMT MONSTER PR ,very sexy SS ,gonna run hard
GNMT Security Details
Share Structure
Market Value1 $4,177,004 a/o May 22, 2013
Shares Outstanding 345,206,914 a/o Mar 04, 2013
Float Not Available
Authorized Shares 550,000,000 a/o Jan 05, 2011
Par Value 0.001
Shareholders
Shareholders of Record 350 a/o Jul 30, 2012
Security Notes
Capital Change=shs decreased by 1 for 20 split. Pay date=3-29-05
Capital Change=shs increased by 11 for 10 split Ex-date=07/19/2007.
Capital Change=shs decreased by 11 for 10 split, payable upon surrender.. Pay date=01/04/2011.
Short Selling Data
Short Interest 0 (-100%)
Apr 15, 2013
Significant Failures to Deliver No
Transfer Agent(s)
Nevada Agency and Transfer Company
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[12:10:29 PM] GEM: http://stockcharts.com/h-sc/ui?s=gnmt
[12:10:56 PM] GEM: OTCQB
[12:11:09 PM] GEM: http://www.otcmarkets.com/stock/GNMT/quote
HUGE PR out >> General Metals and Open Gold Enter into Definitive Agreement on Independence Project
Date : 05/23/2013 @ 12:00PM
Source : PR Newswire (US)
Stock : General Metals Corp. (QB) (GNMT)
Quote : 0.0125 0.0004 (3.31%) @ 10:54AM
RENO, Nev., May 23, 2013 /PRNewswire/ -- General Metals Corporation (OTCQB: GNMT); www.generalmetalscorporation.com and Open Gold Corp., a Canadian junior mining company listed on both the TSX Venture and Frankfurt Exchanges; www.opengoldcorp.com jointly announce the entry into a definitive agreement for the acquisition by Open Gold of the Independence Gold and Silver Mining Project near Battle Mountain, Nevada by Open Gold (the "Independence Project"). The Independence Project comprises 14 mining claims, covering approximately 240 acres, and 480 acres of private fee surface land exclusive of mineral rights.
Pursuant to the definitive agreement, as consideration for the acquisition General Metals will receive 64% of the issued and outstanding shares of Open Gold at the time of closing, the calculation of which will include shares issued in connection with a concurrent financing. General Metals has agreed to distribute 90% of the Open Gold shares it receives to the shareholders of General Metals. Pending distribution of the shares to the General Metals shareholders, the shares will be held by a trustee. General Metals' voting rights attached to the Open Gold shares held directly by General Metals will be limited to 14% of the total post-transaction issued and outstanding Open Gold shares, excluding shares held by the trustee, which cannot be voted.
Following completion of the transaction, the existing officers of Open Gold will retain their offices, and the board of directors of Open Gold will be comprised of two directors from the existing Board, two nominees of General Metals, and one nominee to be mutually agreed to.
Completion of the transaction is subject to various conditions, including, but not limited to, completion of a financing for gross proceeds of $2,350,000 by Open Gold, approval of the transaction by the shareholders of General Metals, TSX Venture Exchange acceptance, and completion of legal, financial and technical due diligence. Proceeds from the financing will be used for the advancement of the property and working capital. In connection with the transaction, Open Gold will pay a finder's fee of $110,000, payable on closing.
The Independence Project
The Independence Project is located in the heart of the prolific Battle Mountain Mining District in Northern Nevada. The 240-acre Independence Project was once the site of an historic Nevada gold mine [Link: www.nevada-goldmine.com]. The Independence Project is surrounded by a number of large-scale mineral deposits, including the Fortitude, Sunshine, Tomboy, Minnie and Phoenix properties. The now depleted Fortitude Deposit lies just 4,000 feet northeast of the Independence Project and is considered to be one of the most lucrative gold mines ever operated in Nevada. Newmont's Phoenix Mine flanks the Independence Project on three sides and contains significant proven and probable reserves.
Since being acquired in 2006 by General Metals, the Independence Project has logged and modeled drilling data from 131 different drill holes. Key considerations for the acquisition of the Independence Project by Open Gold are as follows:
331,600 ounces gold equivalent in the Measured and Indicated categories*
848,600 ounces gold equivalent in the Inferred category*
Potential for establishing extension to Newmont Gold's adjacent Phoenix Mine
Strategically located adjacent to power, water and infrastructure
*198,000 oz AuEq resource based on 8,328,000 tons at 0.024 oz AuEq/ton; 132,800 oz AuEq indicated resource based on 7,728,000 tons at 0.017 oz AuEq/ton; 52,400 oz AuEq inferred resource based on 4,592,000 tons at 0.011 oz AuEq/ton; and 796,200 oz AuEq inferred based on 4,182,000 tons at 0.190 oz Au/ton. Effective date of estimates is May 31, 2011.
The Independence Project features two main zones of gold and silver mineralization: a shallow near surface epithermal system and a deeper, high-grade underground target. Through its extensive exploration activities, General Metals has defined the near surface epithermal system over a strike length of more than 3,000 feet and a depth of 400 feet.
The mining claims forming part of the project are subject to separate 1% and 5% NSR's, the latter being reduced to a 1.875% upon payment of $3 million.
The Mitchel Property
In September 2012, Open Gold negotiated the option on the Mitchell property from Foundation Resources Inc. This highly prospective and easily accessible Volcanic Massive Sulfide gave Open Gold the ability to promote and explore in the world class Red Lake mining district of Ontario. Since acquiring its option on the Mitchell property, Open Gold has completed an assessment report and recently sent surface samples to be assayed at the lab. More information will be available as the assay report is received.
About General Metals Corporation
General Metals Corporation (OTCQB: GNMT.OB); www.nevada-goldmine.com, is an aggressive junior mining exploration and development company, based in Reno, Nevada. The company is actively pursuing the re-opening of its Independence gold and silver mining project strategically located in the prolific Battle Mountain Mining District of Nevada.
About Open Gold Corp.
Open Gold Corp. (TSX-V: OPG); www.opengoldcorp.com, is a Canadian junior mining company listed on both the TSX Venture and the Frankfurt Exchanges. The company is actively involved in strategic acquisitions of near term gold assets in safe jurisdictions.
Qualified Person and NI 43-101 Disclosure
Information respecting resource estimates is based on an independent technical report entitled "Technical Report of the Independence Gold and Silver Project, Battle Mountain Mining District, Lander County, Nevada USA" dated June 27, 2011 and prepared for General Metals by James Ashton, P.E. and Sam G. Nunnemaker, R.P.Geo in accordance with the form requirements of National Instrument 43-101. A copy of the report is available on the General Metals website.
The technical information in this news release has been reviewed and approved by Ike Osmani, MSC, P.Geo, a consultant to Open Gold and a Qualified Person under NI 43-101.
Cautionary Note to U.S. Investors - The U.S. Securities and Exchange Commission permits U. S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as "measured", "indicated", and "inferred" "resources", which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in General Metal's form 10-K, which may be secured from General Metals or the SEC website at: http://www.sec.gov.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and in Canadian securities legislation. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that Open Gold will complete the acquisition of the Independence Project or the financing. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
For further information, please contact:
GENERAL METALS CORPORATION
Wayne Meyerson
Investor Relations
Suite 210, 1155 West Fourth Street
Reno, NV 89503
Tel: +1 (775) 583-4636
E-mail: wayne@gnmtlive.com
OPEN GOLD CORP.
Bryson Goodwin
President & CEO
Suite 2050, 1055 West Georgia Street
P.O. Box 11121, Royal Centre
Vancouver, BC V6E 3P3
Tel: +1 (604) 341-1531
E-mail: brysongoodwin@shaw.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE General Metals Corporation
Copyright 2013 PR Newswire
No need. I called E trade today and it turns out I can upgrade my account to allow me to trade globally online.
Clegg give Steve a call I'm sure can answer your question ,if you don't want to talk with him,I could email him any questions.ant
Thanks guys. I have an E Trade account. Guess I'll have to give them a call and see what they say. Haven't really thought all this through yet but my bet was on the Independence Mine so I'm thinking it might be a good idea to just buy an additional block of OPG shares if the deal goes through. The ratio of OPG shares to GNMT shares is something that also needs answering.
General Metals Corporation (GNMT) - MM - Deals and Alliances Profile - new company profile report
London 3/22/2013 10:44 AM GMT (TransWorldNews)
Companiesandmarkets.com
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General Metals Corporation (General Metals Corp) is a mining company, based in the US. The company operates through the evaluation, acquisition, exploration and advancement sectors of gold, silver and other precious and base metal properties. General Metals Corp's key project is independence mine project. The company's wholly owned resource property includes Wilson-Independence Gold–Silver Mine, located in the Battle Mountain Mining District, Lander County, Nevada. The mine has 14 whole and fractional unpatented lode mining claims, covering an area of around 240 acres. The company sold its interest in Nyinahin Mining Concession, Ghana. It was formerly known as Interactive Multimedia Network, Inc. General Metals Corp is headquartered in Reno, Nevada, the US.
General Metals Corporation (GNMT) - MM - Deals and Alliances Profile provides you comprehensive data and trend analysis of the company's Mergers and Acquisitions (M&As), partnerships and financings. The report provides detailed information on Mergers and Acquisitions, Equity/Debt Offerings, Private Equity, Venture Financing and Partnership transactions recorded by the company over a five year period. The report offers detailed comparative data on the number of deals and their value categorized into deal types, sub-sector and regions.
We derived the data presented in this report from proprietary in-house deals database, and primary and secondary research.
Scope
- Financial Deals - Analysis of the company's financial deals including M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnerships.
- Deals by Year - Chart and table displaying information encompassing the number of deals and value reported by the company by year, for a five year period.
- Deals by Type - Chart and table depicting information including the number of deals and value reported by the company by type such as M&A, Equity/Debt Offering etc.
- Deals by Region - Chart and table presenting information on the number of deals and value reported by the company by region, which includes North America, Europe, Asia Pacific, the Middle East and Africa and South and Central America.
- Deals by Sub-sector - Chart and table showing information on the number of deals and value reported by the company, by sub-sector.
- Major Deals - Information on the company's major financial deals. Each such deal has a brief summary, deal type, deal rationale; and deal financials and target Company's (major public companies) key financial metrics and ratios.
- Business Description - A brief description of the company's operations.
- Key Employees - A list of the key executives of the company.
- Important Locations and Subsidiaries - A list and contact details of key centers of operation and subsidiaries of the company.
- Key Competitors - A list of the key competitors of the company.
- Key Recent Developments - A brief on recent news about the company.
Reasons to Buy
Get detailed information on the company's financial deals that enable you to understand the company's expansion/divestiture and fund requirements
- The profile enables you to analyze the company's financial deals by region, by year, by business segments and by type, for a five year period.
Understand the company's business segments' expansion / divestiture strategy
- The profile presents deals from the company's core business segments' perspective to help you understand its corporate strategy.
Access elaborate information on the company's recent financial deals that enable you to understand the key deals which have shaped the company
- Detailed information on major recent deals includes a summary of each deal, deal type, deal rationale, deal financials and Target Company's key financial metrics and ratios.
Equip yourself with detailed information about the company's operations to identify potential customers and suppliers.
- The profile analyzes the company's business structure, locations and subsidiaries, key executives and key competitors.
Stay up-to-date on the major developments affecting the company
- Recent developments concerning the company presented in the profile help you track important events.
Gain key insights into the company for academic or business research
- Key elements such as break up of deals into categories and information on detailed major deals are incorporated into the profile to assist your academic or business research needs.
Note*: Some sections may be missing if data is unavailable for the company.
Click for Report details:General Metals Corporation (GNMT) - MM - Deals and Alliances Profile
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I have ameritrade. I own a few tsxv stocks purchased through them. Just call in your order. No problem.
Good Question! I don't know but probably have to go through your broker and not online.
Having already admitted that I'm no expert and never having run into a situation like this before, I do not feel too bad about asking what may be a dumb question. How does one buy or sell shares of a stock like OPG that is only listed on the TSXV?
Again, Mr forbush purchased a lot of shares over 2 cents. It will not be an empty shell with added assets, and as an empty shell it's quite a great reverse merger candidate with tax write off opportunities, audited financials, strong shareholders, and higher otc exchange. Not as bleak as it seems. It's tough out there right now for all junior gold miners.
Lets certainly hope so. However without the mine this stock is just an empty shell. He is broke as he would not be doing the spinout and would start drilling himself if he had any money. It just seems to me that if you are going to sell the only asset you have and then tell your shareholders they will not be paid for almost two years that is a bit much. Does anybody know if the Canada laws are really like that, 2 years and such? In two years all sorts of things can happen RM's come to mind. Plus I don't have that much faith in him as in all this time he has been able to increase shareholder value to only a penny, wow a terrific record. Without any assets now except drawing a big salary probably from the 2 million how is he going to increase shareholder value.
I really don't have much more to add then what I have already said. I do know that the GNMT share price should track the value of OPG until we receive our dividend shares in OPG, so it will not fall to zero like you imply. I don't know what the ratio will be for the dividend shares because Mr Forbush has not released those details yet. Also, Mr Forbush said they are working to add assets to GNMT before the dividend is complete. This will also prevent the share price of GNMT falling to 0. I don't know how this will all be paid for, but there could be private placements, reverse mergers, or JVs being worked on in the background, but I'm only assuming this. Dan has kept dilution at a reasonable level, so I wouldn't expect much of any dilution. Also, Mr Forbush and other officers of the company have purchased many shares on the open market above .02 PPS over the years. I think management's interest are aligned with shareholder's interest.
Maybe hispeedsoul when he gets up tomorrow will be able to shed some light. It is said our GNMT stock will remain the same until the transaction is totally completed. But with zero assets this GNMT stock will be worthless===triple zero here we come. I don't know, these almost worthless gold mines ( only worth a penny a share even now) are poor bets. I don't know why I talk myself into them time after time. You wait years and never make any money. Only the corporate officers pay themselves big salaries while they fleece the sucker bag holders. Even OPG is only worth 3 cents a share. They are going to raise millions of dollars===how many shares will be outstanding after that is done. One thing is true they never give a care about us little penny players, we are fair game,
You and I both need some more explaining done for us Carl. lol
It bothers me that we have not had an update since the target date for the closing of the deal which was the end of April. It also bothers me that without adding assets there is little or no value to GNMT after the Independence is gone. As the deal stands GNMT will own 64% of OPG shares. Shareholders are supposed to recieve 90% of those shares within 20 months of the closing of the transaction which actually equates to 57.6% of total shares. Am I right in assuming (I hate that word) that assets are going to somehow be acquired for GNMT with the 10% of shares not distributed to us? We need to know what assets and where's the money coming from to acquire them. I will readily admit that I am no expert at this stuff and this may or may not be a good deal but I've got questions.
After all is completed will we still show our share count as the same (prior to opg giving their shares). Will we still be able to trade our shares prior to the actual transfer? Will the price simply go down to nothing until the new shares are issued? What will we do for 20MONTHS and what will our shares look like as far as numbers as well as price? If you know those answers you really are on top of this situation.
Mr Forbush mentioned adding assets to GNMT due to the nature of my question. I asked him what value would be left in GNMT if the Independence mine is spunoff into OPG. It actually should be encouraging because that means GNMT will be left with some value after the spinout of independence mine. The money for drilling will come in when deal is complete and before our dividend shares in OPG. It's not a negative thing.
I guess what is all important is if the extra money is available to start DRILLING! Your post (not your fault) was not that encouraging. It seems to me that an intelligent and HONEST corporate officer would at least (when they MISS a promised deadline) would post the reason and give a little guidance. This "trying to add assets to enhance shareholders value" sounds like a crook trying to excuse his lack of ability and faults. Total BS.
I emailed Mr Forbush last week. His response (not word for word) was that the deal is still ongoing and that the dividend of OPG shares is going to take some time. In the meantime, the value of GNMT should track the value of OPG until the dividend is complete. He also mentioned that he is currently working to add additional assets/projects to GNMT to add value for shareholders.
Isn't this deal about due to finalize? Does anyone have any new news?
I REST MY CASE....COWBOY
As am I. Also been pondering the potential 20 m0nth wait to recieve OPG shares. Sure would be nice to get an update this week.
So basically spinning out independence mine into open gold at pro rata shares and adding another asset to GNMT. I'm interested in the ratio
Damn. worked last night, I checked and already deleted his response. Anyway, he just passed on to me a recent E mail from Forbush to another investor explaining that we will own shares in both companies and hinted at another project for gnmt that will also increase share value. Meyerson said he is sure the deal is still on but he is waiting for a pr just like we are. It's been my experience that most of the time he seems to not know much more than we do. Guess I,ve got to have my daughter show me this link posting thing again the next time she's over here. Sorry. You want to move heavy machinery and equipment in and out of ships and submarines through tight quarters with chainfalls and portal cranes, I'm your man. Computers..........not so much. lol
Link didn't work. Just copy and paste his response. Thanks
Just learned how to post a link. I'm not much of a computer person. The prior post is Wayne Meyerson's response to me after I inquired about the target date of the deal with OPG passing by with no update for investors as of yet. Hope it is of interest to all.
No, after being told over three years ago that all they needed was money to start mining. And now they want to drill some more with the money thy will be getting. Come on, they were ready to start mining three years ago and now thay arent, what the hell ......but good luck to you also...cowboy
Obviously you don't believe that the deal is going to happen. You know what they say; "If you can't stand the heat......." I believe the deal will happen so what happens with the share price between now and then means nothing to me except perhaps a chance to pick up some more on the cheap. GLTU
To what 1 cent, wow....cowboy
News: GNMT/OPG Letter of Agreement Questions and Answers
Dan Forbush, President and CEO of General Metals Corporation answers a number of questions for stockholders regarding the recent GNMT/Open Gold Corporation (OPG) announcement.
1. Why is GNMT doing this deal with OPG?
General Metals Corporation had three goals in mind with the Open Gold deal: (1) Raise new capital for the Independence Project (let’s keep it consistent- “Project”) so additional drilling and permitting work can take place, (2) create a vehicle the at enables us to access the Canadian capital markets, (3) Increase shareholder value by ultimately proving more silver and gold reserves as well as finishing the permitting process prior to production.
2. What’s the GNMT and Open Gold deal include?
At closing GNMT will receive 64% of the issued and outstanding shares of OPG In addition approximately $2 million of the new capital will be allocated to The Independence Project and to company working capital, GNMT gets two (2) of five (5) OPG director positions, and the Independence project gets critical exposure on the Canadian TSX Venture Exchange (“TSX-V”). The Independence project does not get transferred to OPG until the capital is raised and all conditions of the transaction are met.
3. How will the General Metals shares in OPG be distributed to GNMT shareholders and why is there a potential of a 20-month waiting period?
General Metals must distribute 90% of the shares received to the shareholders of General Metals within 20 months of the closing of the transaction. The shares will be issued on a pro rata basis to all shareholders of GNMT as of the record date, including warrant holders who may have exercised their warrants. These holding periods are set by the TSX-V in order to meet their requirements for transactions of this nature.
4. How do you explain GNMT shareholders having 64% ownership of OPG but only 14% voting privileges?
Again, this is a requirement set by the TSX-V. Please note this 14% limit is only in place until the shares are distributed to GNMT shareholders. Thereafter voting is unrestricted. The transaction has built-in safeguards to protect the interests of GNMT shareholders throughout this holding period.
5. When will the deal be done?
The target date is the end of April, 2013.
6. What has to be done between now and April?
Each company will conduct its own due diligence which includes verifying all of the information each presents on its financials, assets, liabilities, management, etc.
7. Who will make up the new OPG board of directors?
As part of the deal, General Metals will appoint two (2) directors who will join with two (2) directors appointed by Open Gold. A fifth director, mutually agreeable to both companies will also be selected.
8. Will GNMT shareholders see their stock adjusted in anyway?
There are no changes to the GNMT share structure as a result of this transaction.
9. How will the new capital be used?
Approximately 85% of the $2.35 million (net $2 million) will be dedicated to improve and increase the Independence Project’s resource base, complete additional drilling to increase the size and quality of the gold and silver resource in the initial pit area, position the Project to complete all permitting, identify, if possible, additional gold and silver mineralization on other areas of the property that are unexplored or underexplored and provide general working capital.
10. What is the potential, immediate and long term of the Mitchell Project?
At this stage it is difficult to know what the long term potential of the Mitchell Project is and we really have not had the opportunity to look at it in detail. More information about its potential will come out in the course of our due diligence.
11. How do I get my new Open Gold stock certificates?
We will be notifying all shareholders of the plans for distribution of the OPG once the process is cleared through the TSX-V. Please note that GNMT shareholders are not giving up any of their GNMT holdings in the course of this Transaction. Those holdings remain the same after the Transaction closes. They will have OPG shares distributed to them and thus will be shareholders of both companies.
12. Will GNMT need to raise more capital downstream?
The Company plans to stay active in the mining business and will seek to raise new capital for projects as appropriate.
13. OPG will raise additional capital to complete the transaction with GNMT. Where is the cash coming from?
OPG has asserted , and their previous experience with other junior gold mining companies lends credence to this, that they will be able to raise the required capital from existing or new shareholders.
14. What other provisions are being made to protect GNMT shareholders?
We believe for GNMT, at this time and in this market environment, this transaction is an excellent way for us to bring additional value to our shareholders. Our Canadian counsel has reviewed the Letter of Intent (LOI) and believes completing a transaction based on the terms of the LOI is in the Company’s best interest. During the course of our due diligence on OPG we will insure that shareholder interests are fully protected.
The Low-Down on the General Metals/Open Gold Partnership
By Steve Orlowski · Tuesday, March 19th, 2013
Big mining opportunities draw attention from all corners. And General Metals Corporation (OTCQB: GNMT) appears to be sitting on a literal “gold mine”.
To syndicate this article, or for more information, please contact us online or call (406) 862-5400.
As such it is in the middle of developing a partnership with a Canadian company; a partnership motivated by a need for financing and pure profit potential.
The finalized deal will result in millions of new dollars for GNMT’s Independence Project in Nevada. The deal should prove beneficial for both companies. But it is complex and shareholders are wondering what it means for them.
Gold in Nevada
The crux of the deal is that GNMT needs money to move forward with its very promising Independence Project in Nevada.
The Independence Project is located in the “prolific Battle Mountain Mining District in Northern Nevada” according to a company press release. And it has demonstrated great promise.
You see, GNMT has been drilling to determine what’s below the surface and has unveiled an estimated resource of 1 million ounces of gold and 4 million ounces of silver. This estimate is NI-43-101 compliant.
And the estimate sounds more than reasonable given the success other companies have had in the surrounding area. Newmont Mining’s (NYSE: NEM) Phoenix project is right next door, flanking Independence on three sides. According to GNMT President and CEO Daniel Forbush, Phoenix has several million ounces of gold and hundreds of millions of ounces of copper.
GNMT has other neighbors drilling nearby as well. And only 4,000 feet northeast of Independence is the Fortitude Deposit. It is now depleted but is still considered one of the “most lucrative” mines ever operated in Nevada.
Mr. Forbush has called the area a very prolific region with a gigantic “multi-million ounce trend” that Independence is “right in the middle of”.
Canadian Financing
Open Gold Corporation (CVE: OPG) is a Canadian junior mining company listed on the TSX Venture Exchange. OPG can provide financing for Independence and wants a piece of the action.
As such, General Metals Corporation entered into a Letter of Intent with Open Gold Corp this past January in order to raise much needed capital for today and position itself for additional financing in the future.
In addition to raising “new capital for the Independence Project” Mr. Forbush has stated the company wants to “create a vehicle that enables us to access the Canadian capital markets”. Last but not least, the company is motivated to increase shareholder value.
When the deal is finalized “GNMT will receive 64% of the issued and outstanding shares of OPG and approximately “$2 million of new capital” which “will be allocated to The Independence Project”. Due diligence should be wrapped up by the end of April, 2013.
That $2 million will be used to “improve and increase the Independence Project’s resource base, complete additional drilling to increase the size and quality of the gold and silver resource in the initial pit area, position the Project to complete all permitting, identify, if possible, additional gold and silver mineralization on other areas of the property that are unexplored or underexplored and provide general working capital.”
Mutual Management
There are some interesting stipulations in the agreement.
For one, after the exchange of shares, GNMT will have “two of five OPG director positions”. The new board of directors will include 2 General Metals Corporation appointees and two directors appointed by Open Gold Corporation. A fifth director will be chosen mutually.
Confusion for some GNMT shareholders comes from a potential waiting period before shares of OPG are transferred to GNMT shareholders. There’s no cause for concern, the potential holding period is simply a TSX-V requirement for that type of transaction. In the end all of the shares transferred from OPG to GNMT will be distributed to GNMT shareholders.
Another quirky TSX-V requirement is that although GNMT shareholders will have 64% ownership of OPG they will only have 14% voting privileges. This is also temporary. After all the shares of OPG have been distributed to GNMT shareholders they will enjoy full voting rights.
The official statement from General Metals Corporation assures GNMT shareholders that in the end there “will be no changes to the GNMT share structure”.
In the End it’s Golden
An additional benefit for GNMT shareholders is that by receiving shares of OPG they will gain exposure to an OPG project in Canada: the Mitchell Project.
The Mitchell Project is a 2,256 hectares gold exploration territory in the Red Lake mining district. The Eholt Project is a 3,000 hectares gold-copper exploration project in Southern British Columbia near the United States border. Both project show promise but are still in the exploration phase.
OPG has also committed to additional financing for the Independence Project in the future. The company “has asserted, and their previous experience with other junior gold mining companies lends credence to this, that they will be able to raise the required capital from existing or new shareholders”.
The bottom line is that GNMT needs the financing in order to advance the Independence Project and OPG can deliver. Given this arrangement shareholders should feel optimistic that the project will succeed. And if it does, then General Metals Corporation should succeed on all of its objectives, especially the third: “increase shareholder value”.
The Low-Down on the General Metals/Open Gold Partnership
http://theotcinvestor.com/the-low-down-on-the-general-metalsopen-gold-partnership-1856/
I know of a property in Ghana that could probably be gotten pretty cheap right about now. lol
interesting deal....
What's interesting to me is this appears to be a spinout of the property. I did not realize GNMT will remain. I thought this was a merger, but it's more of a spinout. I expect Dan to acquire other properties under GNMT. I think shareholders are good here. We shall find out.
Target date for the deal to be done: End of April, 2013.
I'm liking this, we're on the move.
News: GNMT/OPG Letter of Agreement Questions and Answers
Dan Forbush, President and CEO of General Metals Corporation answers a number of questions for stockholders regarding the recent GNMT/Open Gold Corporation (OPG) announcement.
1. Why is GNMT doing this deal with OPG?
General Metals Corporation had three goals in mind with the Open Gold deal: (1) Raise new capital for the Independence Project (let’s keep it consistent- “Project”) so additional drilling and permitting work can take place, (2) create a vehicle the at enables us to access the Canadian capital markets, (3) Increase shareholder value by ultimately proving more silver and gold reserves as well as finishing the permitting process prior to production.
2. What’s the GNMT and Open Gold deal include?
At closing GNMT will receive 64% of the issued and outstanding shares of OPG In addition approximately $2 million of the new capital will be allocated to The Independence Project and to company working capital, GNMT gets two (2) of five (5) OPG director positions, and the Independence project gets critical exposure on the Canadian TSX Venture Exchange (“TSX-V”). The Independence project does not get transferred to OPG until the capital is raised and all conditions of the transaction are met.
3. How will the General Metals shares in OPG be distributed to GNMT shareholders and why is there a potential of a 20-month waiting period?
General Metals must distribute 90% of the shares received to the shareholders of General Metals within 20 months of the closing of the transaction. The shares will be issued on a pro rata basis to all shareholders of GNMT as of the record date, including warrant holders who may have exercised their warrants. These holding periods are set by the TSX-V in order to meet their requirements for transactions of this nature.
4. How do you explain GNMT shareholders having 64% ownership of OPG but only 14% voting privileges?
Again, this is a requirement set by the TSX-V. Please note this 14% limit is only in place until the shares are distributed to GNMT shareholders. Thereafter voting is unrestricted. The transaction has built-in safeguards to protect the interests of GNMT shareholders throughout this holding period.
5. When will the deal be done?
The target date is the end of April, 2013.
6. What has to be done between now and April?
Each company will conduct its own due diligence which includes verifying all of the information each presents on its financials, assets, liabilities, management, etc.
7. Who will make up the new OPG board of directors?
As part of the deal, General Metals will appoint two (2) directors who will join with two (2) directors appointed by Open Gold. A fifth director, mutually agreeable to both companies will also be selected.
8. Will GNMT shareholders see their stock adjusted in anyway?
There are no changes to the GNMT share structure as a result of this transaction.
9. How will the new capital be used?
Approximately 85% of the $2.35 million (net $2 million) will be dedicated to improve and increase the Independence Project’s resource base, complete additional drilling to increase the size and quality of the gold and silver resource in the initial pit area, position the Project to complete all permitting, identify, if possible, additional gold and silver mineralization on other areas of the property that are unexplored or underexplored and provide general working capital.
10. What is the potential, immediate and long term of the Mitchell Project?
At this stage it is difficult to know what the long term potential of the Mitchell Project is and we really have not had the opportunity to look at it in detail. More information about its potential will come out in the course of our due diligence.
11. How do I get my new Open Gold stock certificates?
We will be notifying all shareholders of the plans for distribution of the OPG once the process is cleared through the TSX-V. Please note that GNMT shareholders are not giving up any of their GNMT holdings in the course of this Transaction. Those holdings remain the same after the Transaction closes. They will have OPG shares distributed to them and thus will be shareholders of both companies.
12. Will GNMT need to raise more capital downstream?
The Company plans to stay active in the mining business and will seek to raise new capital for projects as appropriate.
13. OPG will raise additional capital to complete the transaction with GNMT. Where is the cash coming from?
OPG has asserted , and their previous experience with other junior gold mining companies lends credence to this, that they will be able to raise the required capital from existing or new shareholders.
14. What other provisions are being made to protect GNMT shareholders?
We believe for GNMT, at this time and in this market environment, this transaction is an excellent way for us to bring additional value to our shareholders. Our Canadian counsel has reviewed the Letter of Intent (LOI) and believes completing a transaction based on the terms of the LOI is in the Company’s best interest. During the course of our due diligence on OPG we will insure that shareholder interests are fully protected.
Why You Should Care About General Metals’ Deal
Trading many junior mining stocks is a risky game, with volatile swings due to everything from commodity prices to new geological surveys. Diversified ETFs like Global X’s Junior Miners ETF (NYSE:JUNR) may be trading down more than 16% over the past 52 weeks, but there are many unique opportunities for discerning investors. For instance, General Metals Corporation’s (GNMT) recent agreement that could significantly push forward the timetable towards permitting and production on its Independence gold and silver mine in Nevada.
Background on the Deal
On January 31, 2013, General Metals announced that it entered into a Letter of Intent (“LOI”) with Open Gold Corp (CVE:OPG), a Canadian junior mining company listed on the TSX Venture Exchange, to raise capital and provide better access for future capital needs. Under the terms of the agreement, $2.35 million will be raised to advance the development work on the General Metals’ Independent gold and silver mining project, initiate exploration of Open Gold’s Mitchell Project near Goldcorp Inc.’s (NYSE:GG) properties, and provide working capital.
The transaction itself calls for Open Gold to issue shares of its common stock to General Metals such that it will own 64% of Open Gold’s issued and outstanding shares, including the shares issued to raise the $2.35 million in capital. These shares will then be issued to General Metals’ shareholders and the Independence project will be transferred to Open Gold. The new board of directors for Open Gold will consist of two General Metals directors, two former Open Gold directors, and a fifth director that’s independent and acceptable to both companies.
Doing the Mathematics
With one million ounces of gold and four million ounces of silver resources, according to a NI 43-101 report, the net present value of General Metals’ Independence mine could be nearly $50 million using conservative discount rates. The company’s mere $8 million market capitalization suggests that investors saw a lot of risk in commercializing the mine, particularly in securing the capital necessary to move into production. The aforementioned agreement removes a lot of this uncertainty and could bridge the gap between market value and intrinsic value.
General Metals shareholders also benefit from a great deal structure. They will acquire 64% of Open Gold’s shares, whose promising Mitchell Project is located in the Birch-Uchi Greenstone Belt just 10km southwest of the former South Bay Mine that produced 1.6 million tons of ore at 2.5% copper, 14% zinc and 3.5oz per ton silver. The addition of the Independence mine could create a company worth in excess of $20 million; while shareholders would also retain their original stake in General Metals, which could pursue additional opportunities.
Potential Investment Opportunity
General Metals represents an attractive potential investment opportunity ahead of the Open Gold transaction, given that its valuation could double afterwards. With only an additional $15 million or so needed to bring the Independence mine into production after final permitting which is in the final stages, the $50 million in net present value could be realized sooner than later for shareholders, while it’s possible that a commercialization partner could come onboard and assume these costs, too. As a result, there’s a lot of potential upside for shareholders to ponder.
Looking ahead, these shareholders can also look forward to potential additional resources being found on the Independence property when drilling begins. The property is located in the prolific Battle Mountain mining region, where the Phoenix Mine flanks it on three sides, producing 250,000 ounces of gold and 900,000 ounces of silver, with proven and probable reserves worth more than $20 billion. Similar reserves, if discovered, could position Independence alongside companies like Allied Nevada Gold Corp (ANV) that operate in the state.
For more information on General Metals and the Independence mine, see their July 2012 Investor Presentation or their website at www.nevada-goldmine.com.
Disclosure: The subject security is a client of Emerging Growth, LLC. For full financial disclosures for all Emerging Growth, LLC clients, please visit http://secfilings.com/Disclaimer.aspx
Thought you all might find this interesting.
http://newswatch.nationalgeographic.com/2013/02/06/scientists-discover-how-bacteria-changes-ions-into-gold/
I think we are in need of more news.
That is intresting,ant
Nice run today. Hopefully this is just the beginning of a revaluation that takes us past .05. It's been a loooooong time coming.
NEWS: 02/01/2013 - General Metals Announces Transaction That Will Generate $2.350 Million in New Funding
General Metals Corporation (OTC.QB: GNMT) (www.nevada-goldmine.com) announced today that it has entered into a Letter of Intent with Open Gold Corp (TSX/V: OPG), a Canadian junior mining company listed on the TSX Venture Exchange, to raise capital and provide better access for future capital needs. Per the terms of the Letter of Intent, $2.350 million will be raised to advance the development work on the General Metals Independence gold and silver mining project located near Battle Mountain, Nevada, initiate exploration of Open Gold’s Mitchell Project and provide working capital.
The transaction is subject to completion of due diligence by both General Metals and Open Gold and the execution of a definitive agreement between the two companies. Under the terms of the proposed transaction, Open Gold will issue shares of its common stock to General Metals so that General Metals and its shareholders will own 64% of Open Gold’s issued and outstanding shares including the shares issued to raise the capital. After the close of the transaction, the shares will be distributed to General Metals’ shareholders of record after all regulatory requirements and registrations are completed. In exchange, General Metals will transfer its interest in the Independence gold and silver mining Project to Open Gold.
Following the close of the transaction, the new board of Open Gold will consist of two Directors appointed by General Metals, two Directors appointed by Open Gold and a fifth independent director who is acceptable to both companies. The transaction will close once all of the conditions of the definitive agreement have been met. The most critical of these is that the $2.350 million dollar financing is closed and the money is in escrow.
Commenting on the transaction, Daniel J. Forbush, President and CEO of General Metals, stated: “I am very pleased to have finally been able to raise the money we have needed to advance the Independence Project. The most satisfying aspect of the transaction is that it proves definitively that the market is undervaluing General Metals. As we approach the closing date we should see more of the undervaluation being reflected in the market. As a result of this transaction, General Metals’ stockholders will own the majority interest in Open Gold with a much larger combined asset base consisting of the Independence Project, Open Gold’s Mitchell Project and $2.35 million in new capital with which to advance both projects.”
“As shareholders should see from the structure of the Board, current GNMT management will play a significant role in the future development and commercialization of the assets of Open Gold,” continued Forbush.
Approximately $2 million of the new capital will be used to improve and increase the Independence Project’s resource base, identify drill site placements to increase the size and quality of the gold and silver resource in the initial pit area, make significant progress towards production, demonstrate additional gold and silver mineralization on other areas of the property that are unexplored or underexplored and provide general working capital.
“Because we believe the Independence Project has tremendous upside potential that will significantly enhance the value of the company, the priority is completing additional geological, metallurgical and economic evaluations of the property,” said Bryson Goodwin, President and CEO of Open Gold. “By the time we’re done, we anticipate the Independence Project will have expanded the resource and be much further down the road to production.”
The Independence Project
The Independence Project is located in the heart of the prolific Battle Mountain Mining District in Northern Nevada. The 240-acre Independence Project was once the site of an historic Nevada gold mine. The Independence Project is surrounded by a number of large-scale mineral deposits, including Fortitude, Sunshine, Tomboy, Minnie and Phoenix properties. The now depleted Fortitude Deposit lies just 4,000 feet northeast of the Independence Project and is considered to be one of the most lucrative gold mines ever operated in Nevada. Newmont’s Phoenix Mine flanks the Independence Project on three sides and contains significant proven and probable reserves.
Since being acquired in 2006 by General Metals, the Independence Project has logged and modeled drilling data from 131 different drill holes. The project contains a NI-43-101 compliant measured, indicated, and inferred resource of approximately 1 million oz. of gold and 4 million oz. of silver.
The Independence Project features two main zones of gold and silver mineralization: a shallow near surface epithermal system and a deeper, high-grade underground target. Through its extensive exploration activities, General Metals Corporation has defined the near surface epithermal system over a strike length of more than 3,000 feet and a depth of 400 feet.
“Our goal of securing additional capital to complete the permitting and project development while adding additional shareholder value is within reach because of the Open Gold transaction,” said Forbush. “Our shareholders get the additional benefit of ownership interest in a TSX Venture Exchange listed company providing access to a more robust mine financing environment and potentially broadening our base of shareholders. In addition our shareholders receive a 64% interest in Open Gold’s Mitchell Property.”
The Mitchell Property
In September 2012, Open Gold negotiated the option on the Mitchell property from Foundation Resources. This highly prospective and easily accessible Volcanic Massive Sulfide gave Open Gold the ability to promote and explore in the world class Red Lake mining district of Ontario. Since acquiring its option on the Mitchell property, Open Gold has completed an assessment report and recently sent surface samples to be assayed at the lab. More information will be available as the assay report is received.
About General Metals Corporation
General Metals Corporation (www.nevada-goldmine.com) is an aggressive junior mining exploration and development company, based in Reno, Nevada. The company is actively pursuing the re-opening of its Independence gold and silver mining project strategically located in the prolific Battle Mountain Mining District of Nevada.
Cautionary Note to U.S. Investors - The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as "measured", "indicated", and "inferred" "resources", which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our form 10-K which may be secured from us or the SEC website at: http://www.sec.gov/edgar.html
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the Company will find appropriately priced equipment or a contractor willing to move the muck on our property, or that it will be able to complete any additional financing activity, or that the near surface mineralized material will be economically recoverable.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
I think it is after digesting it. Can you share news with Rig's board? I think they would appreciate
nice news..
General Metals Announces Transaction that will generate $2.350 million in New Funding
http://www.prnewswire.com/news-releases/general-metals-announces-transaction-that-will-generate-2350-million-in-new-funding-189288501.html
RENO, Nev., Jan. 31, 2013 /PRNewswire/ -- General Metals Corporation (OTCQB: GNMT) (www.nevada-goldmine.com) announced today that it has entered into a Letter of Intent with Open Gold Corp, a Canadian junior mining company listed on the TSX Venture Exchange, to raise capital and provide better access for future capital needs. Per the terms of the Letter of Intent, $2.350 million will be raised to advance the development work on the General Metals Independence gold and silver mining project located near Battle Mountain, Nevada, initiate exploration of Open Gold's Mitchell Project and provide working capital.
The transaction is subject to completion of due diligence by both General Metals and Open Gold and the execution of a definitive agreement between the two companies. Under the terms of the proposed transaction, Open Gold will issue shares of its common stock to General Metals so that General Metals and its shareholders will own 64% of Open Gold's issued and outstanding shares including the shares issued to raise the capital. After the close of the transaction, the shares will be distributed to the General Metal's shareholders of record after all regulatory requirements and registrations are completed. In exchange, General Metals will transfer its interest in the Independence gold and silver mining Project to Open Gold.
Following the close of the transaction, the new board of Open Gold will consist of two Directors appointed by General Metals, two Directors appointed by Open Gold and a fifth independent director who is acceptable to both companies. The transaction will close once all of the conditions of the definitive agreement have been met. The most critical of these is that the $2.350 million dollar financing is closed and the money is in escrow.
Commenting on the transaction, Daniel J. Forbush , President and CEO of General Metals, stated: "I am very pleased to have finally been able to raise the money we have needed to advance the Independence Project. The most satisfying aspect of the transaction is that it proves definitively that the market is undervaluing General Metals. As we approach the closing date we should see more of the undervaluation being reflected in the market. As a result of this transaction, General Metals' stockholders will own the majority interest in Open Gold with a much larger combined asset base consisting of the Independence Project, Open Gold's Mitchell Project and $2.35 million in new capital with which to advance both projects."
"As shareholders should see from the structure of the Board, current GNMT management will play a significant role in the future development and commercialization of the assets of Open Gold," continued Forbush.
Approximately $2 million of the new capital will be used to improve and increase the Independence Project's resource base, identify drill site placements to increase the size and quality of the gold and silver resource in the initial pit area, make significant progress towards production, demonstrate additional gold and silver mineralization on other areas of the property that are unexplored or underexplored and provide general working capital.
"Because we believe the Independence Project has tremendous upside potential that will significantly enhance the value of the company, the priority is completing additional geological, metallurgical and economic evaluations of the property," said Bryson Goodwin , President and CEO of Open Gold. "By the time we're done, we anticipate the Independence Project will have expanded the resource and be much further down the road to production"
The Independence Project
The Independence Project is located in the heart of the prolific Battle Mountain Mining District in Northern Nevada. The 240-acre Independence Project was once the site of an historic Nevada gold mine. The Independence Project is surrounded by a number of large-scale mineral deposits, including Fortitude, Sunshine, Tomboy, Minnie and Phoenix properties. The now depleted Fortitude Deposit lies just 4,000 feet northeast of the Independence Project and is considered to be one of the most lucrative gold mines ever operated in Nevada. Newmont's Phoenix Mine flanks the Independence Project on three sides and contains significant proven and probable reserves.
Since being acquired in 2006 by General Metals, the Independence Project has logged and modeled drilling data from 131 different drill holes. The project contains a NI-43-101 compliant measured, indicated, and inferred resource of approximately 1 million oz. of gold and 4 million oz. of silver.
The Independence Project features two main zones of gold and silver mineralization: a shallow near surface epithermal system and a deeper, high-grade underground target. Through its extensive exploration activities, General Metals Corporation has defined the near surface epithermal system over a strike length of more than 3,000 feet and a depth of 400 feet.
"Our goal of securing additional capital to complete the permitting and project development while adding additional shareholder value are within reach because of the Open Gold transaction," said Forbush. "Our shareholders get the additional benefit of ownership interest in a TSX Venture Exchange listed company providing access to a more robust mine financing environment and potentially broadening our base of shareholders. In addition our shareholders receive a 64% interest in Open Gold's Mitchell Property."
The Mitchel Property
In September 2012, Open Gold negotiated the option on the Mitchell property from Foundation Resources. This highly prospective and easily accessible Volcanic Massive Sulfide gave Open Gold the ability to promote and explore in the world class Red Lake mining district of Ontario. Since acquiring its option on the Mitchell property, Open Gold has completed an assessment report and recently sent surface samples to be assayed at the lab. More information will be available as the assay report is received.
About General Metals Corporation
General Metals Corporation (www.nevada-goldmine.com) is an aggressive junior mining exploration and development company, based in Reno, Nevada. The company is actively pursuing the re-opening of its Independence gold and silver mining project strategically located in the prolific Battle Mountain Mining District of Nevada.
Cautionary Note to U.S. Investors - The U.S. Securities and Exchange Commission permits U. S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as "measured", "indicated", and "inferred" "resources", which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our form 10-K which may be secured from us or the SEC website at: http://www.sec.gov/edgar.html
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that the Company will find appropriately priced equipment or a contractor willing to move the muck on our property, or that it will be able to complete any additional financing activity, or that the near surface mineralized material will be economically recoverable.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Contact:
Wayne Meyerson
Investor Relations
General Metals Corporation
1155 West Fourth Street, Suite 210
Reno, NV 89503
wayne@gnmtlive.com
775.583.4636 office
SOURCE General Metals Corporation
RELATED LINKS
http://www.nevada-goldmine.com
PR Newswire (http://s.tt/1ze12)
Can we get the latest news stickied?
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General Metals Corporate Website:
http://www.nevada-goldmine.com
LOI:
Open Gold Corporation
http://www.opengoldcorp.com/
With Gold at $1250.00 per oz and Silver at $19.50 per oz:
http://www.kitco.com/market/
Total Gold: 1,078,600 oz of Measured, Indicated, and Inferred worth $1,348,250,000
Total Silver: 3,990,500 oz worth $77,814,750
Total Gold and Silver: $1,426,064,750
Total Outstanding Shares: 225,000,000 Fully Diluted
Total Gold and Silver Value per Share: $6.34 per share
Now, consider this: MINING WITHIN 12 MONTHS???
During fiscal year 2011, the Company continues an aggressive program, restricted by available funds, to rapidly move the Independence project toward production. We anticipate being able to secure necessary studies and permits to allow us to proceed to production in the near term.
On May 5, 2010, we announced completion of a current, independent, technical report and resource calculation compliant with Canadian National Instrument 43-101. The report was submitted to Canadian authorities for review and approval preparatory to the Company being able to use the report with Canadian investment firms to assist the Company in acquiring the resources necessary to complete our aggressive program. This report does not meet SEC Industry Guide 7 guidelines but will provide information in a familiar format for our Canadian and European investors.
Dyer Engineering of Reno, Nevada continues the permitting process necessary to place the Independence Mine into commercial production
Additional extractive metallurgical studies will be undertaken. When these studies are completed, a mine plan will be developed which the Company believes will see much of the mineralization identified in its drilling converted into reserve categories.
We anticipate being able to secure necessary permits to allow us to proceed to production. We anticipate initially mining the Hill Zone and are completing all necessary work to be able to finalize permits to allow us to begin there. Additional drilling and assaying planned to further delineate the Hill Zone mineralization will allow us to maximize our cash flows early in the production cycle.
The following budget outline is anticipated to be necessary to move the Independence Project forward to the brink of production in the coming twelve months.
Direct exploration and development costs
Core drilling program $ 500,000
Updated Independent Technical Report 100,000
Metallurgical testing programs 250,000
Additional permitting costs 500,000
Land Payments 20,000
Contingency 60,000
Total direct exploration and development costs 1,430,000
Indirect costs
Office rent and other operating expenses 50,000
Wages and salaries and payroll related expenses 200,000
Insurance expenses 140,000
Other general and administrative expenses 150,000
Legal expenses 30,000
Total indirect costs 570,000
Total budget for the next twelve months $ 2,000,000
We are aggressively moving the Independence project toward production. We obtained necessary studies and to allow us to continue with the permitting to allow us to proceed to production as soon as financing and regulatory authorities will allow. We anticipate initially mining the Hill Zone and are completing all necessary work to be able to finalize permits to allow us to begin there. Additional drilling and assaying are required to bring the Hill Zone into production and the permitting required to allow for that program is underway. We believe the Hill Zone is amenable to open pit mining and heap leaching, and rapidly evaluate the potential of these target areas for near term production.
10-K
http://www.sec.gov/Archives/edgar/data/1060910/000135448810002532/gnmt_10k.htm
Corporate Presentation:
http://www.youtube.com/watch?feature=player_embedded&v=apLXUfwHlW8
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