US Precious Metals (USPR) Announces Acquisition Agreement to Acquire Plasma Tech Company
Marlboro, NJ - U.S. Precious Metals, Inc. (USPR) issued news today regarding the acquisition of Resource Technology Corp. (RTC), a leading Plasma Technology company. The agreement was entered into by both parties on May 11, 2013 and brings a significant revenue stream.
Resource Technology Corp.'s assets include Three ore supply agreements from Three high grade ore mines, Two from within the United States and one internationally. It also has a processing agreement with Plasma Processing LP (“PP LP”) which utilizes patent pending, plasma technology to increase the rate of extraction of precious metal concentrates. RTC currently is a 1/3rd net revenue share partner with both the mining property owners and PP LP.
The plasma processing plant, located near Palm Springs, California, took 3 years to build and is fully operational and permitted to process ore concentrate. PP LP has agreed to increase its daily capacity to 10 tons/day in order to satisfy the terms of this contract. Upgrades to the system are expected to be completed within 90 days. When fully operational the plant is expected to run for approximately 300 days per year with an anticipated minimum of 1,000 tons of high grade ore per year being available generating a $150,000.00 per ton yield for a potential $150,000,000 yearly revenue stream. As part of the transaction, US Precious Metals may supply its own ore concentrate for plasma processing in which case, USPR will receive 2/3rds of the revenue stream. The parties believe that they will be able to supply the additional concentrates needed to support a 10 ton/day 300 day/year operation. Initially the contract term is for 5 years with a yearly extension option for an additional 4 years after this date.
As part of the deal, PP LP has agreed to increase its daily capacity to 10 tons/day in order to satisfy the terms of this contract. Upgrades to the system are expected to be completed within 90 days. Upgrades to the system are expected to be completed 60 - 90 days from shareholder approval of this deal from U.S. Precious Metal shareholders.
Mr John Gildea, Board Member and USPR spokesperson stated:” After completing extensive due diligence over the last numbers of months and carefully structuring this transaction, we feel this acquisition is a fantastic opportunity for USPR and its shareholders. In light of the extremely difficult environment for both junior miners and explorers, this allows USPR to become a revenue generating company in a very short space of time which in turn allows us to focus on our Mexican property. The company has strong intentions of starting work in Mexico in the very near future and is already in talks to facilitate this. Our overriding objective is to grow the company and maximize value to all USPR shareholders. We strongly believe this transaction allows us to do this.”
To read further comprehensive details including U.S. Precious Metals Board of Directors decisions regarding this venture please go to http://www.financialnewsmedia.com/stock-investing-business-investing-news/featured-news.php?id=269
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About PP LP:
Plasma processing employs an extremely high heat (in excess of 7,000 F) process which breaks down ore concentrates into their basic elemental state. The plasma process, called Plasmafication , is state of the art technology developed in conjunction with leading US Universities, specifically designed for precious metal separation and the Company is excited that it will be the first in the industry to employ it. This process will yield significantly greater processing returns than milling processes currently employed in the mining industry.
About USPR:
US Precious Metals, Inc. is an exploration stage company engaged in the acquisition, exploration and development of mineral properties. We focus on gold, silver and copper primarily located in the State of Michoacán, Mexico where we own exploration and exploitation concessions to approximately 37,000 contiguous acres of mineral rights.
Disclaimer/Disclosure Content
This Press Release may contain, among other things, certain forward-looking statements, including, without limitation, (i) statements with respect to the Company’s plans, objectives, expectations and intentions; and (ii) other statements identified by words such as “may”, “could”, “would”, “should”, “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans” or similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control), including, without limitation, the ability of the plasma technology to perform as anticipated and the Company’s ability to obtain funding to develop its Mexican property and to pay its existing liabilities. USPR news alerts send via SMS Text Message are free; however standard message & data rates may apply. Check with your wire carrier for more details.
U.S. Precious Metals, Inc.
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SOURCE: U.S. Precious Metals, Inc.
