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Intertech Solutions to Amend Gold Streaming Agreement for Westport’s WPE Mine, Arizona

Published: January 12, 2016 |

[Click image to enlarge]

Intertech Solutions Inc. (ITEC) has commenced negotiations to obtain an improved agreement with West Port Energy, LLC on the WPE Mine in Quartzite Arizona.

Within the proposed enhanced agreement, ITEC is to receive from the first day of production a 20 percent net revenue interest in return for having paid in $4 million. To date $2.75 million has been paid towards being fully vested. The original agreement required ITEC to have paid in a total of $6 million for a 25 percent revenue interest or $240,000 for each 1 percent of revenue from the WPE Mine. The proposed agreement will have a reduced amount of $200,000 contributed per 1 percent of mine revenue. Additionally further dilution to ITEC’s capital structure is mitigated by the proposed agreement due to reduced amount of shares required for issuances to facilitate private placements.

The revised agreement reduces the cost to ITEC and secures its revenue interest at a time when many mining operations are being shut down due to poor demand and low commodity prices. This also proportionately reflects current valuation of the project and the total required capital to bring the operation into full scale ongoing commercial production. ITEC is confident in its ability to raise the reduced additional capital required to fully vest, and will be participating in the future cash flow from the WPE Mine for the anticipated mine life of the deposit.

Upon meeting its obligation and fully vesting, the company will have secured the ongoing 20 percent interest in all gold production for the total investment of $4.0 million. With the estimate of over 100,000 ounces contained the initial mine block from the first 1,000,000 tons of gold bearing gravels at a grade of 3 grams per ton, the anticipated net value to ITEC would be $15 million at current gold prices of $1,090 per ounce with a net margin per ounce of $750 after operating costs. ITEC could now possibly expect to receive over $3.8 million per year from revenue over a minimum 4 year period, yielding an internal rate of return of 87 percent.


About Intertech Solutions
Intertech Solutions is a fully integrated, gold project finance, management and services consulting company that provides development capital, engineering, project supervision and technical management to gold projects. The company operates from its offices in Scottsdale, Arizona.

To stop by Intertech Solutions’ website, CLICK HERE


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