Gainey Signs Agreement to Toll Process Ore at Huajicori
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January 22 2014 TSXV Trading Symbol: GNC
GAINEY SIGNS AGREEMENT TO TOLL PROCESS ORE AT HUAJICORI
Gainey Capital Corp. (TSXV: GNC) (“Gainey” or the “Company”) is pleased to announce that it has signed a letter of intent with Mining Minerals of Mexico, Corp. (OTCBB: WIIM) (“Mining Mexico”) whereby the Company’s 100%‐owned Mexican subsidiary Gainey Mexico, S.A. de C.V. (“GaineyMex”) will enter into a toll processing agreement (“Toll Agreement”) to toll process mineral ore and produce gold and silver concentrate for Mining Mexico at the recommissioned GaineyMex Processing Center located outside Huajicori, in the state of Nayarit, Mexico.
Details of the Toll Agreement are presently being finalized by Gainey CEO David Coburn and George Cantua, the Company’s Mexican Operations Manager, recently appointed to Gainey’s team after leaving his Production Supervisor position at Barrick Gold’s Dominican Republic production facility. The Toll Agreement will be for an initial term of two years, and will be on a strictly flat rate per tonne of ore basis, with the resultant concentrate being delivered to Mining Mexico FOB at the Huajicori facility.
The Company has begun stockpiling Mining Mexico’s initial shipment of 18,000 tonnes of ore at the Processing Center and will be receiving a deposit towards processing the first ore through the facility, which it expects will begin producing concentrate in Q1 2014. Shipments of ore originate from Mining Mexico’s Gallo d’Oro property, 22 kilometers from the Processing Center, where Mining Mexico has approximately 2,450 hectares of mineral rights under option at the base of the Sierra Madre Mountains.
David Coburn, Gainey CEO stated “This Toll Agreement represents an important step in Gainey's strategy to utilize our existing processing plant and equipment to generate cash flow, which will help us fund a broader exploration research program and finalize preparations for processing our own ore.”
The GaineyMex facility has a current through‐put capacity of 300 tonnes per day. In addition to Mining Mexico, several other mineral producers in the area have indicated their willingness to engage GaineyMex to process ore for them, with whom the Company is negotiating additional toll contracts. The Company is currently considering ramping up its facility to 500 tonnes per day to better meet the area’s needs.
Corporate Update
The Company reports that Kristian Dagsaan has resigned as Chief Financial Officer. Barry Lee, currently a director of the Company, has been appointed to the CFO position.
About Gainey Capital Corp.
Gainey Capital is a gold and silver exploration and development company exploring an aggregate of 18,766 hectares strategically located in the gold/silver‐rich Sierra Madre Occidental Trend in western Mexico. Additional information on Gainey Capital, its current operations and its vision is available on the Company’s website at www.gaineycapital.com or from [email protected].
ON BEHALF OF THE BOARD OF DIRECTORS
“David Coburn”
David Coburn, Chief Executive Officer
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For information, please contact the Company:
Phone: 604‐484‐5144 E‐mail: [email protected]
FORWARD LOOKING STATEMENTS: This press release may contain forward‐looking statements. Forward‐looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward‐looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward‐looking statements whether as a result of new information, future events or otherwise.
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