WHITE ROCK, BC / CRWEPRESSRELEASE / July 29, 2015 / Standard Tolling Corp. (CVE:TON, FRA:GA0.F), (“Standard Tolling” or the “Company”) reports significant construction progress and operational improvements. It is anticipated that the final construction and permitting items will be complete and pre-commissioning of the leaching plant will commence in late August suggesting initial sales by early Q4 2015.
President and CEO, Leonard Clough commented, “Our plant is nearing final completion with no major hurdles outstanding. I’m proud of the value creation efforts we have delivered to our shareholders by undertaking all our engineering efforts in-house; know-how that will become more meaningful as we take on additional plants. The reorganization of our commercial operations team has also translated into a meaningful backlog of business and a road map to 100 TPD production.”
- Completion of the $2.25 million Ore Note Financing. This three-year funding facility, is a fully dedicated ore purchasing facility which will be used to fund all ore purchases at 100 TPD through-put;
- Crushing circuit is fully operational with daily ore deliveries improving and accelerating;
- Leaching circuit construction nearing completion with all major installations complete;
- All desorption equipment constructed and installation underway, with completion scheduled for August as planned;
- Onsite laboratory is fully constructed with all technical equipment installed;
- Tailings dams currently under construction;
- Communication tower installed, providing real-time information flow from the plant and enhance surveillance and security.
Most capital expenditures were in keeping with estimates, but have been expanded to include four critical additions which are nearing completion now:
- Tank Capacity – an additional tank was added in order to provide greater residence time to improve recoveries;
- Additional Communications Infrastructure – better information flow will improve systems management;
- Additional Operational Software – will enable the operations team to more easily address the heavy regulatory burden and compliance requirements of SUNAT and other authorities;
- Strategic Land Purchase – the acquisition will provide numerous strategic benefits including additional space requirements.
The Company recently engaged in discussions with the holders of the USD$1.325 million debt that was assumed as part of the acquisition of the plant, due on December 31, 2015. An agreement in principle has been reached, pending formal documentation, to extend approximately USD$1 million of the debt until June 30, 2016 on the same terms. The remaining balance will be paid out within the next 5 months. The Company appreciates the support of the debt holders who understand that minor start-up delays occur.
Due to the additional inclusion of the four special projects mentioned above, and higher-than-expected legal expenditures incurred since the acquisition in December of 2014, the Company is reviewing its working capital needs over the upcoming months until positive cash flow is achieved. With the majority of capital expenditures incurred, management does not anticipate the shortfall to be significant. The Company remains well funded in its ore purchase program with ample capital for all ore purchase needs at 100 TPD.
The Company is undertaking the immediate task of building an inventory of low-grade ore to be used to load and test the leaching circuits, while high-grade ore will continue to be stockpiled. Upon reaching optimal operating performance, the high value mineral in inventory will be introduced. Ore purchase activities are accelerating with a number of commitments in place for ongoing deliveries.
President and CEO, Leonard Clough commented, “As planned, the location of the plant is proving to be very strategic and we are seeing many opportunities. Despite the turmoil in the mining business, the ore processing business remains steady and predictable, with high margins and limited commodity exposure making it an ideal long term investment opportunity in any investment environment.”
About Standard Tolling Corp.
Standard Tolling is completing the construction of its first custom gold processing plant with a 100 TPD capacity, located in Northern Peru. The Company purchases ore from government permitted small-scale miners, processes it, and sells gold dore. The plant is located within a prolific gold belt with close proximity to Rio Alto’s La Arena gold mine.
ON BEHALF OF THE BOARD
Mr. Len Clough, Chairman, President, CEO and Director
For further information please contact:
Tel: 866-222-5820 ext 101 for John Martin
Neither the 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.
This news release contains certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur and include, without limitation, statements regarding the Company’s plans with respect to statements about the Company’s ability to fund and execute the proven ore processing business model outlined in this news release. Although Standard Tolling believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
SOURCE: Standard Tolling Corp.