SOURCE: SNRG Corp.

July 08, 2010 10:27 ET

SNRG Corporation Announces Gold Mining Agreements

HOUSTON, TX--(Marketwire - July 8, 2010) -  SNRG Corporation (PINKSHEETS: SNRG) (the "Company") announced this morning that the Company has entered into two agreements to expand the company's business focus to include gold and other mineral mining initiatives.

The Company has acquired a mining lease and option in respect of a 7/8 interest in an approximate 7,100 acre placer gold property in San Bernardino County, California, from Colindo Minerals, LLC. The consideration payable under the lease is a future total royalty of $270,000,000 (the equivalent of $1.00 per oz of potential gold reserves). The Company may elect to attempt to acquire a lease and option in respect of the remaining 1/8 or may elect to forego the remaining 1/8 interest in the property and cooperate with the Lessor in a judicial partitioning of the property. The property, known as the Armagosa Mine, has a long history and has been extensively tested by various parties over the past 80 years; however the Company is not relying on any of the prior data. The Company intends to conduct its own valuation and develop its own operating plan.

"While we believe the gold potential of this property is significant," stated D. Elroy Fimrite, the Company's Chief Executive Officer. "We intend to utilize and harvest all metals, minerals and possibly sand and gravel from this site."

The Company has also entered into a first right of refusal and option agreement on a 960 acre placer gold property in Esmeralda County, Nevada from Western Gold Company. The Company is purchasing this option in exchange for fifty million restricted shares of common stock. This property known as the Gold Star Mine, also has an extensive history with extensive prior testing by various parties, however, the Company will not be relying on prior third party data but will undertake its own testing program prior to making a determination as to whether to exercise its option.

The Company advises that it has reconstructed its website to reflect the new initiatives; readers can find additional general information on the Company at www.snrgcorp.com.

The Company has also researched additional applications of the gasification technologies and alternative uses for systems and equipment being obtained as part of the plant purchase previously announced by the Company. As a result, the Company is developing applications for the recovery of base metals and minerals. The first intended application is planned to be directed at the high temperature processing of concentrate from placer mining operations for recovery of a variety of precious metals and valuable minerals.

FORWARD-LOOKING STATEMENTS AND SAFE HARBOR STATEMENT:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "plans," "hopes," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act, and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the Company's business focus. SNRG Corporation takes no obligation to update or correct forward-looking statements, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company. 

Contact Information

  • Investor Relations Contacts:
    Mr. Jim Elbert
    630-847-4255
    Email Contact

    Authorized by:
    D. Elroy Fimrite
    President & CEO
    Contact: Email Contact