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April 9, 2012 /PRNewswire/ -- Eastern Resources, Inc. (OTC Bulletin Board: ESRI), a
Delaware corporation, announced today that it completed the acquisition of Montana Tunnels Mining, Inc. and Elkhorn Goldfields, Inc., and that the two companies became wholly owned subsidiaries of Eastern Resources (the "Company"). Shares of the Company's common stock are currently quoted for trading on the OTCQB under the symbol "ESRI."
Following the merger, the Company will be headquartered in
Denver, Colorado and the business of Montana Tunnels Mining, Inc. and Elkhorn Goldfields, Inc. will constitute the Company's only operations.
"We are pleased with the successful completion of the merger. Over the past 12 years our team has strategically assembled a collection of mining assets with proven precious and base metal reserves in a world-recognized mining district in
Montana, and the merger represents a major milestone for Montana Tunnels Mining, Inc. and Elkhorn Goldfields, Inc.," said
Patrick Imeson, Chairman and Chief Executive Officer. "This transaction positions us for growth; providing the opportunity to continue development and near-term production and providing industry jobs to Montanans, as well as the prospect of returns to our shareholders."
The Company intends on continuing the development of Elkhorn's Golden Dream Mine, which should obtain full production in the fourth quarter of 2012. Concurrently, the Company intends, subject to financing, on initiating development work of the mine expansion at the Montana Tunnels Mine and is targeting the re-starting of mining ore and milling operations in 2014. Upon achieving full production of both mines, the average annual combined production is anticipated to produce an average of 150,000 gold and gold equivalent ounces per year which would consist of approximately 105,000 ounces of gold, 500,000 ounces of silver, 35 million pounds of zinc, 12.5 million pounds of lead and 2 million pounds of copper per annum.