CARSON CITY, Nev., April 7, 2015 (GLOBE NEWSWIRE) -- Mexus Gold US (OTCQB:MXSG) ("Mexus" or the "Company") confirmed today that the terms of the signed contract between First Pursuit Silver de Mexico S. de R.L. de C.V. (FPV) and Mexus have not been met. The company is reviewing all options with legal counsel and will update shareholders as the matter progresses. CEO Paul Thompson added, "Obviously we are disappointed that the purchaser has failed to meet their contractual obligation as we had hoped to use these funds to further our development at the Julio/Santa Elena property. Fortunately, we have received numerous offers to JV the Julio/Santa Elena. These offers were reviewed but frankly we were hoping to move forward alone with the proceeds from First Pursuit. Without these funds our plan is to aggressively seek out a joint venture for our flagship property. I want our shareholders to understand that this won't be a fire sale. We will negotiate a deal that is in the best interest of the company and shareholders. I've been speaking to multiple companies and would like to have a deal wrapped up sooner than later."
The company also confirmed that the placer operation at the Julio/Santa Elena continues to produce gold. CEO Thompson added, "We've made the necessary changes to the screens and equipment and are now running at 90% capacity. The last piece of the puzzle will be to purchase new tires for one of our loaders which will increase our tonnage per day. Please understand that for security reasons we will not be giving weekly, bi-weekly, or monthly updates on actual production."
Mexus is looking to sign a contract with an underground miner after the traditional Mexican Easter holiday has ended. This miner will run Mexus' high grade underground mine and include the use of their blasting permit.
CEO Thompson concluded, "Although the default on our deal with First Pursuit is disappointing, it doesn't dissuade us from our goal of getting the Julio/Santa Elena property into full production. I'm confident that one of the parties we are negotiating with will step up to the plate and help us move this project forward."
About Mexus Gold US
MEXUS GOLD US is an American-based exploration company with holdings in Mexico. Mexus' fully owned Julio/Santa Elena property is located 54km NW of Caborca, Mexico. This property sits in an area which is currently being mined by some of the largest mining companies in the world. Mexus has drill results which show a high grade, multi vein system throughout the property. The company looks to have this property in full production by the end of 2015. Mexus also owns the rights to the Ocho Hermanos property, which is located 80km NE of Hermosillo, Mexico. This property will be drilled to show a proven reserve once our flagship property is in full production. Preliminary drilling on this property has been extremely promising. Founded in 2009, Mexus Gold US is committed to protecting the environment, mine safety and employing members of the communities in which it operates.
For more information on Mexus Gold US, visit www.mexusgoldus.com.
Forward looking Statement: Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
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Source:Mexus Gold US