Dhanoa Minerals Completes Acquisition of ''Spanish Plant'', Its New Central Processing and Refining Plant
Posted on: Monday, 11 June 2007, 09:00 CDT
Dhanoa Minerals, Ltd (OTCBB:DHNA)(FWB:D7Z) is pleased to announce that on Friday, June 8th, the company received the $1,000,000 required to close its acquisition of the "Spanish Plant", a new centralized processing and refining facility for the company's three gold producing mines in the Bella Rica region of southern Ecuador.
On June 6th Dhanoa Minerals announced its agreement to purchase the plant and this acquisition would increase the company's recovery rate and its gold production by as much as 40%.
The "Spanish Plant" allows increased production due to its capacity to refine greater tonnage of ore, resulting in higher production levels. With the "Spanish Plant" Dhanoa Minerals is considering the further acquisitions of neighboring producing mines in the expectation of increasing production through the processing of greater tonnage of ore on a monthly basis.
Prior to the acquisition of the "Spanish Plant" Dhanoa Minerals had a gold recovery rate of approximately 50% of its potential value. With the "Spanish Plant" acquisition the company should achieve a 90% recovery rate at a reduced cost. This will substantially increase profit margins.
"Specifically, this plant enables us to substantially increase our current gold recovery rates as well as reduce unnecessary outsourcing production cost. The plant will be instrumental in our meeting our 12 month production goals of 100,000 ounces of gold, which translates into $68 million in revenues," stated Lee Balak, President of Dhanoa Minerals.
Additionally, the acquisition of the "Spanish Plant" gives the company the capability to create an additional revenue source through treating and processing minerals produced by other neighboring mining companies.
About Dhanoa Minerals Ltd.
'Dhanoa' is a production stage company formed for the purpose of acquiring, exploring, and developing natural resource properties. Activities during the production and exploration stage include further development of the Company's business plan and raising capital. The Company has recently initiated a new program to evaluate undervalued assets for potential addition to its mineral claim portfolio.
Forward Looking Statements
Statements contained in this news release that are not historical facts are forward-looking statements that involve risks and uncertainties. Actual results may differ materially from any forward-looking statements due to many risk factors which include, but are not limited to, no operating history and no earnings, reliance on the Company's management team, the ability to successfully implement the Company's business plan, the ability to fund the Company's business strategy, competition and general economic conditions. Reference is made to our filings made with the United States Securities and Exchange Commission.
Source: Business Wire
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