SPOKANE, Wash., Dec. 19, 2012 /PRNewswire/ -- Goldrich Mining Company (OTCBB - GRMC) ("Goldrich") is pleased to announce it has successfully completed the sale of on-site equipment at its Chandalar gold property ("Chandalar") in Alaska for $900,000 to an affiliate of NyacAU, LLC. ("NyacAU"). The equipment will remain at the mine site and will be leased by Goldrich NyacAU Placer, LLC ("GNP"), a company owned 50/50 by Goldrich and NyacAU, LLC, for the production of gold at Chandalar. The sale of the equipment amends the joint venture agreement in which Goldrich would have leased the equipment, with a book value of $1.2 million, over five years to GNP.
"The sale of the equipment allows us to immediately monetize its value and receive the cash in the time period when we most need it. Gold production will commence at Chandalar within six months. The funds from the sale will be used to help bridge Goldrich's working capital needs until that time," said President and CEO William Schara. "Our goal is to eliminate dependence on volatile equity markets to obtain financing. We are taking some of our final steps to reach that goal with the sale of the equipment and the beginning of production."
Of the $900,000 sales price, $276,020 has been credited towards outstanding equipment debt assumed by the NyacAU affiliate, $291,913 has been received by Goldrich, and receipt of the remaining balance will be spread evenly over seven monthly payments through July 2013.
GNP completed the mine construction during 2012 and expects to begin production at Chandalar at the start of the 2013 operating season (see Goldrich news release dated November 5, 2012). Continued stripping of overburden and stockpiling of placer pay gravels is planned to begin in May 2013. Gold production will be approximately from mid-June to mid-September of each season. The production goal for 2013 is 8,500 ounces of fine gold and approximately 10,000 ounces per season thereafter.
Total production could substantially increase if a second gold recovery plant is installed. Goldrich forecasts that cash production costs for 2013 will be less than $700 per ounce of gold. All costs up to commercial production, which Goldrich forecasts to be approximately $5 million, are required to be funded by NyacAU and will be paid back from cash flow from gold production.
For additional information regarding Goldrich Mining Company or this news release, contact Mr. William Schara by e-mail at email@example.com or by telephone at (509) 768-4468. See Goldrich's website at www.goldrichmining.com.
Goldrich Mining Company is engaged in the business of the discovery and mining of gold deposits. This endeavor carries certain risks that are commensurate with the potential rewards of such efforts. These risks cannot be quantified and should not be taken lightly.
SOURCE Goldrich Mining Company