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AMERICAN MINING CORPORATION COMPLETES INITIAL $500,000 PAYMENT TO WIN-ELDRICH
FOR MODIFICATION AND EXPANSION OF THE ASHDOWN MILL
RENO, NV--(Marketwire - Jul 5, 2011) - American Mining Corporation ("AMC"), a
Nevada corporation (OTCQB: AMCM) and Win-Eldrich Gold Inc. ("WEG"), a wholly
owned subsidiary of Win-Eldrich Mines Limited ("WEX") (TSX-V), are pleased to
announce that AMC has completed the initial cash payment of US$500,000 towards a
joint venture with WEG.
Under the terms of a letter of intent dated March 24, 2011, WEG will contribute
the currently operating Ashdown milling facility, located in northern Nevada, to
the joint venture, while AMC has agreed to provide an additional US$1.5 million
in operating capital, along with a 100 ton-per-day mill circuit. Once completed,
the planned improvements will double the productive capacity of the Ashdown mill
to 200 tons-per-day. The joint venture will utilize the expanded facility for
contract milling of existing high grade gold resources, with WEG and AMC sharing
equally in the operating cash flow.
In addition to its obligations under the joint venture, AMC will be adding its
750 kg large-format plasma furnace and additional refining equipment to the
Ashdown facility. With a heating capacity of more than 4000 C, the furnace will
enable the production of gold dor and the smelting of other precious, platinum
group and rare earth metals.
"We are pleased to see our mutual efforts progress and look forward to our
continuing growth with Win Eldrich," said Gary MacDonald, CEO of AMC. "The
Ashdown joint venture, along with continued developments of our 16 to 1 mill
site at Silver Peak, Nevada, bring us closer to implementing our business model
as a precious metals producer."
Perry Muller, CEO of WEX, noted the following: "We can now begin to finalize ore
contracts, amend existing permits and begin adding capacity. Cash generated by
our existing molybdenum operation combined with contract processing of third
party ores will increase WEX's income, enabling WEX to expand development of its
molybdenum reserves and begin to develop its gold resources at Ashdown. Since
our underground mine infrastructure is already in-place, we anticipate rapid
capital cost recovery which will, in turn, facilitate development of our
identified gold resources."
FOR FURTHER INFORMATION, CONTACT:
Gary McDonald, President, CEO of American Mining Corporation, at (888) 505-5808.
Website: www.americanminingcorp.com/
ABOUT AMERICAN MINING CORPORATION
American Mining Corporation is a "production based" mineral exploration and mine
development company that explores, acquires, and develops advanced stage
properties. The Company operates from an advanced business model, which it has
developed for the purposes of diversifying the financial risks commonly
associated with exploration and mining. Revenue from its own milling and
refining operations are utilized to acquire and advance additional projects.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934. Although the forward-looking statements in this
release reflect the good faith judgment of management, forward-looking
statements are inherently subject to known and unknown risks and uncertainties
that may cause actual results to be materially different from those discussed in
these forward-looking statements including, but not limited to, our ability to
maintain our website and associated computer systems, our ability generate
sufficient market acceptance for our shipping products and services, our
inability to generate sufficient operating cash flow, and general economic
conditions. Readers are urged to carefully review and consider the various
disclosures made by us in the our reports filed with the Securities and Exchange
Commission, including those risks set forth in the Company's Current Report on
Form 8-K filed on June 7, 2011, which attempt to advise interested parties of
the risks and factors that may affect our business, financial condition, results
of operation and cash flows. If one or more of these risks or uncertainties
materialize, or if the underlying assumptions prove incorrect, our actual
results may vary materially from those expected or projected. Readers are urged
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this release. We assume no obligation to update any
forward-looking statements in order to reflect any event or circumstance that
may arise after the date of this release
