Sun River Mining Secures Extended Option to Purchase at Clavo Rico, Honduras; Advances Funding Effort, and Notes Favorable Impact of Recent Increase in Gold Prices.DENVER--(BUSINESS WIRE)--Oct. 19, 1999-- Sun River Mining, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :SUNR), is pleased to announce that recent negotiations with Compania Minera Cerros del Sur, S. de R.L. de C.V. in Honduras have resulted in the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and extension of the option to purchase Minera Cerros del Sur and its principal assets, the mineral concessions and gold mine at Clavo Rico, Choluteca Department, Honduras. The new option allows Sun River until January 17, 2000 to secure the necessary funds, and requires subsequent payment of the purchase price by Sun River in two installments. Efforts on completing the funding agreement Funding Agreement Illiquid insurance contracts that provide guaranteed principal repayment and interest payments for a predetermined period of time. Notes: Funding agreements are marketed to mutual fund companies and municipal reinvestments. and documents necessary for securing financing for the purchase and planned development program have advanced significantly, and are now nearing completion. Sun River's economic projections for Clavo Rico, based on the recently completed drilling program, were generated utilizing a price of US$255.00 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. for gold and indicated a very satisfactory return on investment and profit potential for the project. However, should the recent rally in gold prices to greater than US$300.00 per ounce prove to be indicative of future prices, a considerably improved payback Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money. and return on investment would be realized. Vice President of Exploration and Mining Joseph R. Wojcik stated that "at $300/ounce or above, projected net profit would increase by over 50%." Company management is encouraged by the renewed progress on the Clavo Rico project as well as the improved market conditions, and hopes that this will allow the pending funding and purchase efforts to proceed more vigorously. Additional information regarding Sun River is available on the Company's web site at www.sunrivermining.com. ON BEHALF OF THE BOARD OF DIRECTORS Steven R. Davis President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Sun River Mining, Inc. 350 Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). St., Suite 800 Golden, CO 80401 Tele: 303/384-3415 |
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