Gainey Capital Corp. (TSXV: GNC) (OTCQX: GNYPF) (“Gainey” or the “Company”) is pleased to announce that it has signed a Letter of Intent and Processing Agreement (“Agreement”) with Vetas y Minerales Mining, S.A. de C.V. (“Vetas y Minerales Mining”) to process mineralized material from Vetas y Minerales Mining’s mineral property (“Property”) in Acaponeta, Nayarit at Gainey’s 100%-owned, 300-tpd processing centre located outside of Huajicori, in Nayarit, Mexico.
Gainey has been sampling mineralized materials from Vetas y Minerales Mining’s Property over the past 60-days and has agreed to commence processing of ~1,800 tons of mineralized material starting the week of September 14, 2015.
Under the terms of the Agreement, Gainey and Vetas y Minerales Mining have agreed to a 50/50 profit split from proceeds generated from the sale of concentrate after all expenses are paid.
Vetas y Minerales Mining is a privately held Mexican mining company headquartered in Mazatlan, Sinaloa with mining operations in various locations around the Acaponeta, Nayarit area. Vetas y Minerales Mining’s representative, Alan Frias Lopez, is quoted as saying, “We are excited to work with a group like Gainey who has such extensive technical expertise. We have been sampling mineralized material with them over the past 60-days and they have proven to be a very strong processing partner. We look forward to continuing our work together.”
David Coburn, CEO of Gainey Capital, commented, “This is our first foray into a profit sharing business model, which we’re confident will be a very successful endeavour. With Vetas y Minerales Mining’s extensive knowledge of the area and strong financial backing, we feel this partnership will be mutually beneficial for both companies and will create significant value for our shareholders.”