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DALLAS, Nov. 14, 2012 /PRNewswire/ -- Southridge Minerals, Inc. (SRGE) ("Southridge" or the "Company") announced today that its board of directors has authorized the evaluation of strategic alternatives for its Cinco Minas property located in Jalisco Mexico, including the exploration of a joint venture, complete sale or other transaction.
Cinco Minas, the Company's flag-ship mineral property, has a world-class confirmed gold and silver resource of 235,000 oz. gold and 23.3 million oz. silver with 80% of the known vein system yet to be tested. Today's market value of the confirmed resource at Cinco Minas is well over $1 Billion USD, prior to the completion of further planned exploration to expand the resource.
"Southridge is implementing a plan to fundamentally position itself for further growth in an emerging gold and silver market. By forming ventures on individual projects, the Company expects to grow and maintain an interest in gold and silver mines operated by its partners allowing it to continue to build value through continued exploration. We believe that the exploration of alternatives for the Cinco Minas property will help the company accomplish its strategic goals with additional profitable growth and enhanced shareholder value," expressed Southridge President and CEO, Michael Davies.
Next steps
The Company and its advisers are currently evaluating alternatives and are in advanced discussions with two major NYSE listed metal producers regarding their Jalisco mineral concessions and properties. One of the firms has already signed preliminary documents for the full acquisition of the Cinco Minas property.
Additionally, a major gold producer with a satellite office located in Guadalajara has contacted Southridge with a joint partnership interest in Cinco Minas and the companies are engaged in serious discussions at this time. Southridge expects that the process could be completed within approximately 4 weeks.
There can be no assurance that any transaction regarding the Cinco Minas property will be completed. The company does not intend to disclose developments with respect to the progress of its strategic alternatives review process until such time as the Southridge board of directors approves or completes a transaction or otherwise determines that further disclosure is appropriate.
About Southridge Minerals, Inc. (SRGE)
Southridge Minerals, Inc. is a U.S.-based mineral exploration company dedicated to acquiring and developing mineral resources in geologically permissible and politically stable areas of the world. The Company seeks out early stage opportunities with good mineralization indicators that exhibit significant blue-sky potential. Southridge pursues and advances these projects that are or will be of interest to mid-size and major producers. By forming alliances on individual projects, the Company expects to develop its interests in mines operated by its partners, allowing it to continue to build value through continued exploration. Southridge is currently focused on projects in Mexico.
What sets Southridge apart is its vast experience in Mexico and the knowledge of the geological conditions and formations pertaining to known large gold deposits that have received very little attention to date. This comparative advantage, combined with a specific geographical and mineral focus, will allow for more efficient asset and income growth in the future for the benefit of shareholders' investments.
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