LOS ANGELES, Aug. 29, 2016 (GLOBE NEWSWIRE) -- WGE Holdings Corp. (OTC:WGEE), to be renamed Consolidated Gold Holdings, today announced it has signed a preliminary purchase agreement to acquire a 65 percent interest in an established deep shaft gold mining operation located in Luzon, the largest island in the Philippines, with an option to acquire the remaining interest over a five-year period. The transaction is expected to be completed by year end.
The facility, one of the most successful gold mines in the Luzon region, includes a 300-meter vertical shaft with lift, horizontal shafts, crushers, high-capacity ball mill, floatation tanks, on-site smelting, laboratory, crew accommodation and medical center facilities, as well as more than 200 hectares of high-grade volcanic ore. Initial production is estimated at 1,500 tons of ore per month, with an estimated average yield of six grams per ton -- representing an initial production of 9 kg per month and approximately $400,000 per month based on current prices.
Extensive geological reviews have been performed on the property by JORC-qualified geologists and remaining recoverable reserves are estimated to be one million ounces, or $1.4 billion at current prices.
The proposed acquisition follows solid operational results for the quarter ended June 30, with the company reporting revenues of $1,020,000 compared with $279,000 for the preceding seven months since the company’s inception. Net profit for the quarter was $422,000 compared with $65,000 for the preceding period.
About Consolidated Gold Holdings
Consolidated Gold Holdings is a company with a strategic, high growth investment platform targeting countries in South East Asia, one of the world’s best performing economic regions, with a specific focus on mining and production of gold. The company has operating gold mines in Indonesia and is in the process of acquiring additional capacity through acquisition of additional reserves and production capacity both in Indonesia and the Philippines. The company’s gold production costs are amongst the lowest in the industry.
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