INCEPTION MINING INC. ("Inception" or the "Company") is pleased to announce an agreement in principle to acquire a 100% interest in Clavo Rico Ltd. ("Clavo Rico").
The agreement was entered, reviewed and approved by the Board of Directors and the majority stockholders of both companies. The agreement is a stock exchange transaction through which the shareholders of Clavo Rico will receive newly-issued shares of the Company in exchange for their shares of Clavo Rico. Additionally, the Company will assume certain debts of Clavo Rico.
Clavo Rico is a privately held Turks and Caicos company with principal operations in Honduras, Central America. Clavo Rico operates two subsidiaries with positive revenue and holds other mining concessions. Its workings include several historical underground operations dating back to the early Mayan and Spanish occupation.
Through its operating subsidiaries, Clavo Rico is engaged in processing a significant historical tailings body along with several open pit ore bodies, utilizing a new 600,000 ton membrane-lined leach system and ADR recovery plant. Processing had increased to 500 oz per month prior to the last rain season at which time the company elected to install a new crushing circuit allowing for an increase in production per month. New ore bodies associated with the property have been preliminarily mapped and drilled, leading to mine planning and expanded operations. The acquisition includes all of the current mining operations and primary concession along with the rights to acquire the additional concessions rights controlled by Clavo Rico. The Company's exploration team will focus on bringing those new bodies to production within the next two years and will also embark on a comprehensive mapping of the additional concessions.
Michal Ahlin, the Company's CEO stated, "In today's tumultuous resource market, survival requires revenue and production coupled with focused, well thought out exploration programs. We are fortunate to be able to couple Clavo Rico's proven, profitable operation with our existing, near-production operation in Idaho. The combination of our entities provides for a synergistic coupling of assets and structure that will allow us to grow and continue our expansion goals." Clavo Rico's executive management has agreed to board positions with the Company and to remain available and involved during the transition.
The Company currently owns and operates The UP and Burlington patented mining claims near Salmon, Idaho. The claims are a historically-proven operation with a surface exposed vein of high-grade ore that allowed immediate access with minimal overburden removal. In 2014, the Company secured all necessary permitting, completed access roads and improved all onsite roads necessary to complete phase one of its bulk sampling program and open one of the historical adits. Operations in 2015 will include completion of the bulk sampling program, expansion of the surface operation, continued sampling and mine planning leading to an underground mining operations on the UP and Burlington claims.
About Inception Mining Inc.
We are a mineral resource company engaged in the acquisition, exploration, and development of primarily gold-related properties. Our primary target properties are those that have been the subject of historical exploration and have significant supporting data.