President's Letter to Metalline Mining Company Shareholders
April 23 2007 - 11:48AM
PR Newswire (US)
COEUR D'ALENE, Idaho, April 23 /PRNewswire-FirstCall/ -- On March
6, 2007, Metalline (AMEX:MMG) completed a private offering of
2,413,571 shares of the Company's common stock, $0.01 par value per
share, and warrants to purchase 1,206,785 shares of common stock,
exercisable at $2.42 per share and expiring on March 6, 2011. The
Purchased Securities were purchased at a price of $4.70 per Unit,
which consists of two shares of common stock and one warrant, for
aggregate gross proceeds of $5,671,892.60 pursuant to the Common
Stock and Warrant Purchase Agreement with the purchasers. There
were no commissions paid in connection with the Offering. The
Purchased Securities were sold to accredited investors pursuant to
Section 4(2) and Regulation D under the Securities Act of 1933. The
proceeds of the offering are expected to be used for general
corporate purposes, including working capital and to initiate an
aggressive exploration program on the polymetallic (copper, silver,
zinc, lead) mineral system at the Sierra Mojada project located in
Coahuila, Mexico. A revised resource model has been completed by
Reserva International, and has gone through an external technical
review. After a report on the work is complete, this work will be
ready for review by SRK, the technical auditors for the feasibility
study. A scoping study on mining methods has been performed by
Pincock, Allen and Holt of Lakewood, Colorado. The result of the
study is that either underground or open pit mining of the rocks is
feasible. The choice between the methods will be made on the basis
of geotechnical studies. The purpose of these studies is to
determine how well the rocks in the area will stand under the
stresses expected during mining. Agapito Associates, Inc. of
Golden, Colorado has been contracted to perform the required
geotechnical work. The necessary equipment for geotechnical
drilling has been acquired and the geotechnical drilling is
scheduled to begin on 23 April. Additional geotechnical data will
be acquired by laboratory and in situ measurements of rock
strength, and through on site mapping and sampling as well as from
analysis of geologic mapping and drilling already completed by
Metalline on the Iron Oxide Manto mineralized material. Mr. Ken
Hart has been contracted to synthesize the geologic data, acquired
by Metalline on the Iron Oxide Manto, to compile the geological
report that is a requisite for a bankable feasibility study and to
provide the geologic framework to constrain the resource model and
to support the mine plan. Ken was the Project Geologist for Reunion
Ltd during the evaluation drilling and the feasibility study of the
Skorpion deposit. He continued in this role as a contractor for
Anglo American after they reacquired the property. Skorpion is
operated by Skorpion Zinc, an Anglo Base Metals company, and
produces about 150,000 tonnes of SHG zinc annually at an operating
cost of about $660 per tonne, $0.30 per pound. Zinc is currently
$3600 per tonne; Skorpion has to be one of the most profitable
mines in the world and is the low cost producer of SHG zinc. Water
development continues with completion, casing the hole and
installing a pump, and pump testing of the water well holes drilled
to date. Results of these tests will be released soon, as the pump
testing is nearing completion. Other continuing Feasibility Study
activities ongoing are: Metallurgical studies on potential
by-product metals (silver, germanium, indium, etc.), refinery site
location investigation and environmental studies continue.
Polymetallic mineralization (silver, copper, zinc, lead) north of
the Sierra Mojada fault occurs over an area of 6 km east-west and 1
km north- south. This mineralization occurs on the dumps of over 45
shafts that all produced high grade direct shipping silver ore and
in the host rocks surrounding the high grade underground stopes in
these mines. A drill program to explore the polymetallic
mineralization, north of the Sierra Mojada fault is being
implemented. The program will involve additional underground
diamond drills, a larger diamond drill dedicated to surface
drilling and a reverse circulation rotary drill dedicated to
drilling and casing the alluvial material preparatory to the
surface diamond drilling. If open pit mining of the zinc oxide
mantos is selected, this program will also evaluate material that
would be extracted during stripping of the underlying zinc oxides.
Sincerely Merlin Bingham President Forward-Looking Statements This
news release contains forward-looking statements regarding future
events and Metalline's future results that are subject to the safe
harbors created under the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934. These statements are based on
current expectations, estimates, forecasts, and projections about
the industry in which Metalline operates and the beliefs and
assumptions of Metalline's management. Words such as "expects,"
"anticipates," "targets," "goals," "projects," "intends," "plans,"
"believes," "seeks," "estimates," "continues," "may," "will,"
variations of such words, and similar expressions are intended to
identify such forward-looking statements. DATASOURCE: Metalline
Mining Company CONTACT: Metalline Mining Company, +1-208-665-2002,
or fax, +1-208-665-0041, Web site: http://www.metalin.com/
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