Michael Grace is the latest addition to Preston Corp (OTCMKTS:PSNP) board of directors his appointment having been confirmed on May 24, 2016. He joins the company with 30 years’ experience in financial matters and business development.
Preston Corporation remains confident of Mr. Grace in-depth knowledge of the financial markets as well as mining and health care sectors playing a key role in steering the company to new heights. The executive holds a degree from Columbia University having specialized in political science and management sustainability.
Growing Gold Asset Portfolio
The exploration stage company has also confirmed that it has signed a preliminary lease agreement for a gold mine in California. In a press release on May 3, 2016, the company confirmed that it would be spending a minimum of $250,000 on the gold mine in Sierra Nevada Mountains this season. With total capital cost expected to be in the range of $4 to $5 million a decision on commercial production is to be made by August 31, 2016.
A business arrangement and agreement with Western Mine Development LLC announced on April 25, 2016, further affirms Preston Corporation gold asset portfolio. Western Mine is to act as Preston exclusive agent for locating acquiring and development gold production assets
In addition to the lease agreement and the business arrangement with Western Mine, Preston Corp (OTCMKTS:PSNP) on August 10, 2016, provided details of a royalty purchase agreement signed for an Arizona mine. Located near Quartzsite Arizona, the mine should be able to produce, 220,000 tons of gold bearing material a year.
While generating 3 grams of gold per ton, the gold bearing material should produce 21,000 ounces of gold a year. With the mine in a position to produce 800 ton per day, the same should lead to an EBITDA forecast of $23.5 million next year and $29.8 million in 2018.
Cost production per ounce of gold is expected to be $300 making it a low-cost high-grade placer. The calculated All-in sustaining cost currently stands at $466.82. Given the cost structure, Preston Corporation has reiterated that the mine meets its underlining requirements for financing and acquisition.
Terms of Agreement
Under the terms of the agreement, Preston Corporation has agreed to purchase $5 million in royalty interest in the mine. The company is also entitled to a contractual 50% annual return on its investment. Royalty payments from the mine should start streaming in, in the fourth quarter.
Preston Corporation President, Andrew Stack, has reiterated his confidence on the mine in terms of return on investments. The Arizona gold acquisition also becomes the company’s second project on gold mine operations.
New Legal Firm
Separately Preston Corp (OTCMKTS:PSNP) has engaged the services of Greenberg Traurig LLP, which is to, represents it in all legal matters. The law firm currently boasts of 2,000 attorneys with more than 30 offices around the United States, Latin America, Europe Asia and the Middle East. It also boasts of 400 lawyers who have specialized in matters pertaining to public and private companies.