CHLORIDE, AZ, June 9, 2011 /PRNewswire/ - Hondo Minerals Corporation (OTCBB:HMNC.OB - Ne ws ) announces that it is set to pay the remaining balance of $1,900,000 on the $2.4 million dollars purchase of additional processing equipment as previously announced in our Press Release dated May 9, 2011. The closing for the remaining payment is set for June 10, 2011. All of the equipment in this purchase is valued at over $4 million dollars and is virtually brand new with no prior use other than testing.
William R. Miertschin, Chairman and CEO of Hondo Minerals said, "As we have drilled a water well to assure us of sufficient water for processing, acquired an excavator and bulldozer to remove mineralized material and installed diesel powered generator to provide sufficient and reliable electric power, we continue to take significant steps to not only begin production but to gain momentum for greater processing sooner. Finalizing this acquisition of the processing equipment will allow us to greatly increase our production capacity and have the ability to reach production and revenue targets 6 to12 months ahead of schedule." Miertschin went onto say, "This accelerated closing was made possible by the overwhelming success of our recent private placement and the confidence that our shareholders have demonstrated for our Company. We believe this will in turn create greater value for our Company and therefore its shareholders."
The Tennessee Mine processing facility located near Chloride, Arizona, will recover gold, silver, zinc, and other metals. It is estimated that the daily processing capabilities will commence at 10-20 tons per day and increase to 150 tons per day during late 2011 and 350 tons daily in 2012 as the newly acquired equipment becomes operational.
Hondo's initial independent testing has indicated the Tennessee Mine tailings and dumps could produce an average of 1 oz. to 3 oz. of gold and about 30 oz. or more of silver per ton using our exclusive environmentally friendly technology. At the Tennessee Mine there are approximately a million tons of metal rich tailings and dump material.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts