Gainey Capital Corp. (TSXV: GNC) (“Gainey” or the “Company”) is pleased to announce that it has signed a letter of intent with Mining Minerals of Mexico, Corp. (OTCBB: WIIM) (“Mining Mexico”) whereby the Company’s 100%-owned Mexican subsidiary Gainey Mexico, S.A. de C.V. (“GaineyMex”) will enter into a toll processing agreement (“Toll Agreement”) to toll process mineral ore and produce gold and silver concentrate for Mining Mexico at the recommissioned GaineyMex Processing Center located outside Huajicori, in the state of Nayarit, Mexico.
Details of the Toll Agreement are presently being finalized by Gainey CEO David Coburn and George Cantua, the Company’s Mexican Operations Manager, recently appointed to Gainey’s team after leaving his Production Supervisor position at Barrick Gold’s Dominican Republic production facility. The Toll Agreement will be for an initial term of two years, and will be on a strictly flat rate per tonne of ore basis, with the resultant concentrate being delivered to Mining Mexico FOB at the Huajicori facility.
The Company has begun stockpiling Mining Mexico’s initial shipment of 18,000 tonnes of ore at the Processing Center and will be receiving a deposit towards processing the first ore through the facility, which it expects will begin producing concentrate in Q1 2014. Shipments of ore originate from Mining Mexico’s Gallo d’Oro property, 22 kilometers from the Processing Center, where Mining Mexico has approximately 2,450 hectares of mineral rights under option at the base of the Sierra Madre Mountains.
David Coburn, Gainey CEO stated “This Toll Agreement represents an important step in Gainey's strategy to utilize our existing processing plant and equipment to generate cash flow, which will help us fund a broader exploration research program and finalize preparations for processing our own ore.”
The GaineyMex facility has a current through-put capacity of 300 tonnes per day. In addition to Mining Mexico, several other mineral producers in the area have indicated their willingness to engage GaineyMex to process ore for them, with whom the Company is negotiating additional toll contracts. The Company is currently considering ramping up its facility to 500 tonnes per day to better meet the area’s needs.
The Company reports that Kristian Dagsaan has resigned as Chief Financial Officer. Barry Lee, currently a director of the Company, has been appointed to the CFO position.
About Gainey Capital Corp.
ON BEHALF OF THE BOARD OF DIRECTORS
David Coburn, Chief Executive Officer
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