November 6, 2008
Sunergy Announces Acquisition of 150 Sq. Km. Mining Interest in Ghana, West Africa
Sunergy Inc. (OTCBB:SNEY) is pleased to announce that it has entered into an agreement with General Metals Corporation (OTCBB:GNMT) for the acquisition of its 100% owned Nyinahin Mining Concession located in Ghana, West Africa.
The property shares borders with several major mining companies, including Newmont Mining, Napoli Gold and Dunkwa Continental Goldfields. The license allows for the exploration and mining of gold, silver, base metals and diamonds. About 80% of the Nyinahin Concession lies to the west of the Offin River within the Ashanti Region of Ghana. There are several historical pits and adits with a strong clustering of artisan pits located along the Offin River. Three old gold prospects exist on the concession. The property is accessed via the main Kumasi-Bibiani trunk road. It falls under the jurisdiction of the Atwima Mponua District Assembly with headquarters at Nyinahin.
The consideration for the acquisition of the Nyinahin Mining Concession is $1 million, which is to consist of $500,000 in cash, which shall be payable as follows: (i) $50,000 which is to be provided within 5 days of the effective date of the agreement with General Metals, (ii) $200,000 which is to be provided by December 31, 2008, and (iii) the balance of $250,000 which is to be provided by April 30, 2009; and 2,000,000 restricted shares of common stock of Sunergy, at a deemed value of $0.25 per share.
Company President Joseph Guerrero said: "The Company is entering into Ghana, West Africa with a strong commitment to mining gold and is aggressively pursuing additional substantial land positions that are highly prospective for gold mineralization for acquisition or joint venture. We are focused on identifying near term production opportunities and developing early cash flow opportunities for our shareholders."
The following are excerpted from The Technical Report prepared by Geodita Resources August 2006.
"The completed stream sediment sampling program of 116 samples covered the entire concession and has clearly identified the geochemical signature for gold mineralization ... over 170 km of core and chip samples from the Kenyase-Yamfo (Newmont) mineralized zone have proved that a complex system of NE trending faults control most of the gold mineralization (Gold Deposits of Ghana, Griffis et al 2002)."
"The above stream sediment survey conducted on the concession delineated three anomalous target zones (fig. 7). These are:
-- Owusukurom anomaly = 10.0km X 7.5km
-- Ntoboroso anomaly = 5.5km X 4.0km
-- Krakyekurom anomaly = 5.0km X 3.0km
The above anomalies are within the Birimian metasediments and represent strong exploration targets." The complete Technical Report is available on the Company's website www.sunergygold.com
The Nyinahin Mining Concession is comprised of the Nyinahin Mineral License LVB 8936/05 and Land Registry No. 1535/2005, and subsequently converted into a Full Prospecting License (LVB 3857/08). The Concession is situated 20km northeast of Bibiani and about 48km Southwest of Kumasi, and is located between two geological gold belts, the Bibiani Belt to the west and the Asankrangwa Belt to the east. The concession which covers an approximate area of 172 sq. km. has been reduced to 150 sq. km to conform to statutory requirements regarding the maximum size for Prospecting Licenses by the Minerals Commission.
About West Africa Gold: "The current stage of development in West Africa, if we exclude the Ashanti mine of Ghana (which has produced for over one-hundred years), is akin to the first and second stages of development in the Carlin belt. At this stage, surface deposits are located by prospecting, geochemistry and trenching and then drilled. As one Etruscan official put it, 'Some mines have been discovered by walking over them' from an article on 'West Africa's Birimian Trend - The Next Carlin/Cortez'" by Reg Ogden, Canaccord Capital, September 24, 2007 on Kitco.com.
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any mineralization, development or exploration of the Nyinahin Mining Concession and Sunergy's ability to make the required payments to General Metals as they become due.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.