Cyprium Mining Corporation ("Cyprium" or the "Company") is pleased to announce that it has accepted deliveries of 500 tons of mineralized material at the Company's processing facility in Aldama, Mexico (the "Aldama Plant"). Cyprium has the exclusive use of the Aldama Plant under a five year agreement with its owner during which Cyprium will use the Aldama Plant on a variable cost basis.
Cyprium will purchase mill feed for its own account and will be responsible for the supervision of all metallurgic processes, including quantitative chemical analysis, assaying of samples, determining feed grades and the sale of concentrates. The Aldama Plant is a 100 metric tons per day flotation plant located twenty kilometers outside the City of Chihuahua in Northern Mexico.
Andre St Michel, President and CEO of Cyprium stated: "On April 17 we announced the closing of the first disbursement of our US $4.5 million debt financing for an amount of US $1 million. Most of this capital will be dedicated to the Aldama Plant and our tolling business. We are pleased to announce the start of milling operations at the plant. The milling process started last week with the crushing phase and we expect to make our first sale of concentrate in the month of May. Based on the results we obtain from the first milling campaign we may enter into a long-term supply agreement with the mine that provided the initial 500 tons. That mine is located in Moctezuma in Sonora State, Mexico."
The delivery of the 500 tons was organized by SkyFall Industries S.A. de C.V. ("SkyFall") a Chihuahua, Mexico based company specializing in the offering of services for small and medium mines for mineral treatment and commercialization of concentrates. Cyprium has a non-exclusive mill feed purchase agreement with SkyFall.
"Our partnership with Cyprium is a positive development for our local mining sector which is characterized by several small to medium size miners but a lack in efficiently run processing facilities. We believe that SkyFall's long history in dealing with and purchasing minerals from several small and medium sized miners in Northern Mexico when combined with Cyprium's professionally run processing plant will be a winning proposition for all involved," said Hector Bustillos, President of SkyFall.
About Cyprium Mining Corporation
We operate solely in Northern Mexico where our senior management team resides. We only look for projects that have a potential for profitable production in the short-term and a large exploration potential. Cyprium is committed to maximizing the potential of projects by funding exploration programs mainly through cash flows generated by production instead of funding such programs strictly through equity offering thus limiting shareholder dilution. Cyprium prioritizes projects which are easily accessible and close to large urban centers. Cyprium, through its wholly-owned subsidiary Cypriumex S.A. de C.V. provides tolling services to miners located in the state of Chihuahua, Mexico (see October 1st, 2014 news release). Cyprium also owns 51% of Coyame Copper SA de CV ("Coyame Copper"), a Chihuahua, Mexico based mining exploration company and has an option to increase its stake in Coyame Copper to 70% for a consideration of US $1.2 million payable over a period of eighteen months following the exercise of the option. Coyame Copper's Las Cristinas Project consist of four adjacent exploration concessions (Las Cristinas, La Parrita, La Verde and La Lagrimosa) covering 684 hectares. Coyame Copper also owns production assets located outside the town of Coyame, Mexico.