Preston Enters Royalty Agreement With Western Mine Development’s Gold Mine, Arizona
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Preston Corp has signed an agreement to acquire a gold production royalty from an Arizona mine through its exclusive agent Western Mine Development LLC.
The project is an alluvial placer mine that has just received an approved mining permit from the regulatory agency allowing for the commencement of commercial gold production, which when fully implemented is forecast to generate $28.8 million a year EBITDA at a conservative pricing of $1,250 per ounce gold.
The project is a low cost, high grade placer deposit which has an all in production cost per ounce of gold of $300. The mine meets all of Preston’s requirements for financing and acquisition. Preston is confident that it will begin receiving its royalty stream of production revenue in Q4 of this year.
“The Arizona gold acquisition is a great achievement for the company as it is the second project in our growing portfolio of gold mine operations with permitted production that will deliver our desired internal rate of return. We look forward to working with the mine ownership group to ensure timely delivery of Preston’s royalty thus meeting our corporate goals and the added valuation to the shareholders,” said Andrew Stack, president of Preston.
About Preston
Preston Royalty’s mission is to develop the company into a leading financial service provider, specializing in royalty financing for mining operations with the intent to realize large, continuous profits from ongoing economic interest in the production and future production of mining properties. Preston Royalty is gold focused but will create a diversified portfolio of royalties and streams wherever the value can be found regardless of commodity, geography, revenue type or stage of project. Preston Royalty is not an operator and therefore has none of the associated risks or capital requirements of mine operation.
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