Business & Finance
Business and Finance
Business and Finance
Thu, October 28, 2010 USD Energy Corp. Completes Definitive Agreement to Acquire Santa Teresa Minerals
SAN DIEGO--([ BUSINESS WIRE ])--USD ENERGY CORP. (OTCBB:[ UEGY ]) announced today that the company has signed a Definitive Agreement with Santa Teresa Minerals S.A. of Chile to acquire 100% of their outstanding shares in an all stock transaction. Santa Teresa Minerals engages in the acquisition, exploration, development, and operation of precious metal properties in South America. Its gold and copper mining operations are based in Santiago, Chile. Santa Teresa currently owns mining rights in five exploration projects: Casuto, Los Azules, Tauro Cinco/Seis, Los Chipi and Free Gold. Mineral exploration in theses five projects include gold, copper and copper sulfate.
"We are pleased to have completed our agreement to acquire Santa Teresa Minerals. Our mining operations in Chile have begun production, and we are ready to grow with additional capital injections"
aWe are pleased to have completed our agreement to acquire Santa Teresa Minerals. Our mining operations in Chile have begun production, and we are ready to grow with additional capital injections,a said Trisha Malone, Chief Executive Officer of USD Energy. aI am very happy to be part of such a dynamic mining operation and look forward to providing shareholder value as we grow our company,a added Juan Carlos Camus, CEO of Santa Teresa Minerals.
The gold reserves in Casuto alone are estimated at 3 million ounces of alluvial gold and potentially up to 7 million in additional gold reserves. The Free Gold project is already in production and is beginning to scale its operations. Los Azules, Tauro Cinco/Seis and Los Chipi will be discussed when survey results are available.
USD Energy, through its Santa Teresa Minerals subsidiary, owns 60% of Sociedad Sulfatos Chile SA., a copper sulfate production project. Ownership in Sociedad Sulfatos includes the Anico Copper Mines, with an estimated 330,000 tons of copper reserves. USD Energy will begin funding the construction of a $6.2 million copper sulfate production facility that extracts both copper and copper sulfate from raw material either purchased in bulk or extracted from the mines.
Additionally, USD Energya™s Santa Teresa Minerals subsidiary has acquired 60% of the rights to a revolutionary mining technology that extracts gold, silver and copper from raw mining materials using a proprietary and patented electrolysis method of electromining. Patents are either issued or pending in the following countries: Chile, USA, China, South Africa, Canada, Australia, Brazil, Peru. This electromining technology is capable of extracting copper from raw mining material as much as 19 times faster than current mining technology at up to half the cost
FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: whether USD Energy Corp. can successfully execute its operating plan; its ability to integrate acquired companies and technology; its ability to retain key employees; its ability to successfully combine product offerings and customer acceptance of combined products; general market conditions; and whether USD Energy Corp. can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. USD Energy Corp. does not undertake any obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
