Apart from buying the gold processed by Cobra Oro, Glen Eagle’s whole subsidiary in Honduras, NSA has committed to bring 100 tons of daily ore supply to feed Cobra Oro’s plant at an average grade of 4 grams gold per ton. The ore comes from a concession owned by a partner of NSA and is located near the main highway, approximately 40 km from Cobra Oro’s gold processing plant, making transportation accessible all year long.
In return for the ore supply, NSA will share 50/50 with Glen Eagle the proceeds of the dore bar. Production expenses will also be equally shared, a premiere for the Company. Furthermore, NSA will have an experienced plant manager and metallurgist on sight for a minimum of one month and possibly more to help improved and supervised daily operations. NSA will also support Cobra Oro with increased liquidity by making substantial cash advances to buy parts, equipment and other purchases related to production. The metal will also be paid in full upon production, improving substantially Cobra Oro’s liquidity.
Combined with the recent agreement that Glen Eagle has signed with the small miners, the total daily tonnage will exceed 200 tons. It also represents the first time in 7 years that Cobra Oro must deal with an oversupply of ore, a sharp contrast from all the shortages that the company had to face over these recent years.
Both companies see their joint effort as the beginning of an important relationship with further developments already being contemplated to improve their ongoing businesses.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Jean Labrecque, President
Glen Eagle Resources Inc
2075 Victoria Street. Suite 201
Tel : 514-808-9807