CHLORIDE, AZ, May 26, 2011 /PRNewswire/ - As an update, Hondo Minerals Corporation (OTCBB: HMNC), is pleased to announce that it has recently closed an oversubscribed private placement. The private placement to date has received subscription agreements in excess of $3.5 million dollars. The private placement was originally set for $ 1 million dollars, however, the board approved the company to increase its offering up to $4 million.
Hondo has invested the funds in acquiring processing equipment and plans to use the remaining proceeds to: (i) Engage a Geologist to begin a 43 C101 report on the Tennessee Mine property; (ii) apply for a listing on the American Stock Exchange; and (iii) continue the resource conversion program presently under way at the Tennessee Mine property in Chloride, Arizona.
William R. Miertschin Chairman and CEO of Hondo Minerals says, "The investment response to the private placement was overwhelming and I am so happy that we were able to raise the funds quickly"
Mr. Miertschin went on to say, "As you have heard through past company announcements, we have allocated much of the funding towards processing equipment for Tennessee. This along with all other actions of Hondo should demonstrate to shareholders that we are confident in our property and we look transitioning from a development stage company to a revenue generating business within the nearing weeks."About The Company Hondo Minerals Corporation is engaged in the acquisition of mines, mining claims and mining real estate in the United States, Canada and Mexico with mineral reserves of precious metals or non-ferrous metals. Hondo owns the Tennessee and Schuylkill Mines in Chloride, Arizona. The Tennessee Mine was the largest producing silver mine in Arizona history. The Tennessee Mine operated from the late 1800's until 1947 producing lead, zinc, gold and silver. The Company also owns numerous other mining claims in the US Southwest, which are being evaluated for additional reserves. This press release contains forward-looking statements that involve risks and uncertainties, including the Company's beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-KSB and 10-QSB. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public.