Worth over 2p now5 Apr 2017 23:43
31 March 2017
Wishbone Gold Plc
("Wishbone Gold" or the "Company")
Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources
Honduras Mining Joint Venture
Wishbone Gold plc, the trading and exploration company focused on precious metals (gold and silver), today announces it has signed a joint venture agreement through its subsidiary, Wishbone Gold Honduras Ltd ("Wishbone"), with SION Honduras SA ("SION"), to fund the development and exploitation of existing gold mine sites in Honduras. SION is an associated company of Scotia International of Nevada Inc, a privately-owned mining equipment supply company based in the United States of America. SION has an agreement with the Honduran government to modernise and expand the Honduran mining industry.
The agreement provides that Wishbone and SION will provide equipment and expertise to existing small mines in Honduras to enable them to increase production. In return, the mines will agree to supply Wishbone's trading subsidiary Black Sand FZE with all the output from the mines at preferential prices.
The benefit to the mine is that the increased production means higher sales and higher profits. Wishbone and SION obtain security of supply at preferential prices and the Honduran government is guaranteed that all taxes will be paid by the mines.
The aim is to recover each investment within twelve months. Thereafter the margin remains shared equally with SION. The agreement runs for 30 years.