Global Finishing, Inc.

Global Finishing, Inc.

June 30, 2008 09:22 ET

Global Finishing, Inc.: Announcement

QUEBEC CITY, QUEBEC--(Marketwire - June 30, 2008) - Global Finishing, Inc. (FRANKFURT:G8BA) is pleased to report the signature of a Letter Agreement to Acquire the assets of Minesadco S.A. in exchange for 10,000,000 restricted common shares of Global Finishing, Inc., a cash payment of 2,000,000USD payable 30 days after the signature of a binding agreement and issuing a 30,000,000$ debenture maturing In 4 years with annual interest of 8%. Minesadco will also receive the next 24 months after tax cash flow generated by the production of 7,560 ounces of gold.

The closing of the transactions contemplated by the Agreement is subject to a number of conditions including: (i) obtaining all necessary regulatory approvals; (ii) the Company being satisfied with the results of its due diligence with respect to Minesadco S.A. and (iii) entering into a definitive share purchase agreement.

Minesadco's S.A.owns 100% interest in the Grand Gold Mine and Yellow River Process Facility located in the Portovelo-Zaruma-Ayapamba district of southern Ecuador.

Since 1905 the Grand Mine has produced 3.5 million ounces of gold while being operated by the Southern American Development Company. Currently the Grand Mine employs 67 individuals including shift management, engineers, geologists and miners. Production at rate of 100 tons per day is derived from level three with development occurring on level four. There is currently a National Instrument 43-101 compliant report associated with this property. The report refers to the Casa Negra epithermal gold project containing a resource of 1,620,000 ounce of Gold at a cutoff grade of 12g/T.

The Yellow River Process Facility is a newly built conventional cyanide carbon plant which achieves 97% recovery of gold with current capacity of 100 tons per day. The plant employs 37 individuals including metallurgists, engineers, chemists and shift workers. Plans are currently underway to increase the capacity of the plant in increments to 500 tons per day.

Contact Information

  • Global Finishing, Inc.
    Richard Diotte, President