Anthem United Inc.
TSX VENTURE : AFY

Anthem United Inc.

December 01, 2014 09:00 ET

Anthem United Inc. Provides Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 1, 2014) - Anthem United Inc. (TSX VENTURE:AFY) ("Anthem" or the "Company") is pleased to provide the following update on the development of its gold milling operation in Peru. The Company holds a 75% interest in a joint venture that is currently developing a 350 tonne per day gold milling operation in Peru (the "Koricancha Mill"). The remaining 25% interest, subject to an 8% cost of sales royalty payable to Anthem, is held by EMC Green Group S.A. ("EMC"), a private Peruvian company. The Koricancha Mill will produce gold for its own account by processing gold bearing ore purchased from small scale and artisanal miners in Peru.

Progress Highlights

Anthem and EMC have made significant progress advancing the Koricancha Mill.

Highlights to date include:

  • The initial construction permit authorizing the construction of the camp and associated infrastructure was received in June 2014 and construction commenced in July 2014;
  • Long-lead equipment items have been ordered and inspected prior to shipping. These comprise substantially all items required for the processing plant including the crushing and grinding circuits and associated carbon-in-leach gold recovery plant;
  • The applicable authorities in Peru have accepted the relevant permitting documents and the Koricancha Mill is authorized to commence commercial operations on completion of construction;
  • Received a US$1 million first advance pursuant to the terms of a US$5 million gold sales agreement; and
  • Arranged a US$2 million ore purchase credit facility to increase available working capital for initial ore purchases.

Greg Smith, President and CEO of Anthem, commented; "We are pleased with the progress to date at the Koricancha Mill and look forward to establishing a profitable gold producing business in 2015."

Koricancha Mill Construction

Construction of the Koricancha Mill has continued to advance with the construction of camp and administration buildings near completion. Substantial completion of civil works, including earth works and concrete infrastructure required for installation of the processing plant, is expected before the end of the year. Equipment subject to long-lead order time is scheduled to be shipped in December 2014 with expected delivery in Peru occurring early in the first quarter of 2015. Installation of the processing plant and recovery circuit is expected to take approximately two to three months upon arrival of the equipment in Peru. Commissioning of the plant is anticipated to commence immediately thereafter.

The required technical, environment and social studies for permitting have been completed with material permitting documents submitted and accepted by the relevant authorities in Peru. With acceptance of the permitting documents, the Koricancha Mill is authorized to commence commercial operation on the completion of construction.

Ore Purchase Credit Facility

The Company arranged a US$2 million ore purchase credit facility (the "Credit Facility") in October 2014. The Credit Facility has a two year term, is non-revolving and is interest bearing at a rate of 10% per annum with repayment at any time to maturity. No amounts have been drawn under the Credit Facility.

The Company remains fully financed to complete construction of the Koricancha Mill and fund initial working capital and ore purchase requirements. The capital budget to develop and commission the Koricancha Mill is estimated at approximately US$10 million and, pursuant to financing arrangements made with EMC, Anthem must fund the project through the completion of construction and commissioning. In addition to the initial funds on hand, the Company expects to complete the construction and commissioning of the Koricancha Mill by drawing on funds raised earlier this year in a private placement (C$5 million), accessing funds from a gold sales agreement with an independent third party (US$5 million) and utilizing the Credit Facility if and when needed.

About Anthem United Inc.

Anthem United (www.anthemu.com) is focused on building a precious metals producing company through the acquisition and development of silver and gold mineral assets. The Company is currently advancing the development, construction and operation of the 350 tonne per day Koricancha Mill in Peru.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to the development of the Koricancha Mill, including the completion of construction activities, receipt of equipment orders, the approval of certain permit applications and the requisite timing of the foregoing. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable at the time of such forecasts, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by the Company are forward-looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of the Company to control or predict.

Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause the Company's actual results, performance or achievements may be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, mine development and production costs, future production levels, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Contact Information

  • Anthem United Inc.
    Greg D. Smith
    (604) 336-8190