Spirit Exploration announced today that it has signed a letter of intent with an exploration company, Franzosi S.A., to enter into a joint venture which will put the Maria Olivia gold project into full production. The exploration company can earn up to 50% of the project by investing approximately $4.8 million and issuing Spirit Exploration a million shares of its capital stock. The definitive agreement is expected to be completed and signed on or before the 13th of this month.
Peter Laipnieks, President of Spirit, stated, “This joint venture will accelerate our gold production plans in the Portovelo area of Ecuador. We are presently upgrading our production plant at Muluncay and are planning a major expansion there. By bringing in a joint venture partner to develop Maria Olivia, we will be adding to our gold production far faster than if we were to develop the project ourselves. Franzosi S.A. is a mining exploration company with several projects based in Ecuador and has tremendous local knowledge that should help both companies solidify and strengthen their presence in mineral rich Ecuador.”
Franzosi’s President Jaime S. Gomez Moya commented, “We are very happy with the relationship we are forming with Spirit Exploration; Ecuador is on the verge of unprecedented growth in the mining industry specifically in the exploration and development of precious metals, yet we are still well behind other countries in this region and forming this partnership allows us to contribute to the local economy and development of the country as a whole. We have committed our resources to the success of the Maria Olivia project and we project to invest over $5,000,000 on the joint exploration and development.”
He continued to say, “We are estimating that we will increase the inferred gold resources at Maria Olivia to over 1,000,000 troy ounces. With the price of gold around $800, the return on our investment is expected to be substantial. Further, the surrounding villages acknowledge the expected influx of capital to the local economy and are eagerly anticipating this alliance between us and Spirit Exploration. We look forward to a very productive relationship.”
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