Double Crown Resources moves forward on acquisition of Latin American gold and precious metals property
Double Crown Resources (DDCC), a fully reporting company, is pleased to announce it has executed a binding Letter of Intent to acquire controlling interest in a Latin American precious metals resource property which has yielded gold, silver and other valuable metals for hundreds of years.
Upon completion of due diligence, Double Crown will contract to purchase 51% ownership of the property and assume its management role. Since all previous precious metals extractions from this property have been done only by local populations using manual methods, there is excellent opportunity for Double Crown to utilize modern technology to expand the scale of recovery to a level appropriate for the global markets.
Double Crown intends to finance new commercial production of the region and this acquisition by leveraging the revenues earned from its recent gold supply contract announced on January 7, 2016.
The loan package that is being developed will provide for acquisition and production costs. Debt servicing of the loan will be paid for by Double Crown from its negotiated fees on the first supply contract. Double Crown has committed to invest up to $1,000,000 of its fees towards the new loan which will provide Double Crown controlling interest in mineral rights. It is estimated that Phase I of production can result in cash flowing to Double Crown by June of 2016.
At this time, we are negotiating with several additional buyers for precious metals and we intend to sign new contracts in the near future. Our next steps are to procure the loan package as well as to confirm the acquisition region's precious mineral resources and/or reserves by additional sampling and testing and then issue a 43-101 document. Further information will be released as progress is made.
Regarding these acquisition plans, President Allen E. Lopez commented, "With the global commodities markets turning so strongly in favor of gold and precious metals now, Double Crown Resources has adapted its business plan to focus a primary effort on this high value sector.
"We also anticipate that Phase II of the original gold supply contract which was recently announced, has the potential to more than double our net compensation."
Double Crown Resources, Inc., is a public, fully reporting company in the natural resources industry. In addition to our oilfield services business, we market the patent-pending, multi-advantage container system called Translock.
This system is designed for highly efficient, economical and environmentally friendly shipment of aggregate commodities to the oilfield services industry. Additionally, we hold a 100% interest in the Bateman gold and nickel prospect near Thunder Bay, Ontario, Canada. Double Crown Resources, Inc., originally founded in 2006, is based in Henderson, NV with marketing offices in Houston, TX.
Source: Company Press Release