Updated: 2014-10-24 - 15:59:00
UC Resources Symbol: UC.V
It has been a busy fall season and as we start the beginning of a new calendar year, UC Resources is at a place of renewal with a refreshed focus on the excellent assets we hold in Mexico. For those who are unaware, this past November, UC made the decision to sell its McFaulds Lake project to Freewest Resources, a subsidiary of Cliffs Natural Resources, for 6 Million Canadian.
On November 11th, 2011 – Cliffs Chromite Far North exercised its pre-emptive right under the existing joint venture agreement between UC Resources, Spider Resources (now named Cliffs Chromite Far North) and KWG Resources. On Dec 27th, 2011, the pre-emptive notice period for the Joint Venture partner, KWG, expired, meaning that Cliffs Chromite Far North assumed from Freewest the rights to 100% of the UC owned 55% portion of McFaulds Lake.
On January 6th, 2012 the sale of UC’s interest was closed with Cliffs Chromite Far North who now owns approx 80% of the McFaulds Lake project with KWG having an approximate 20% interest.
As for UC Resources, the sale was for a collection of reasons, but mostly surrounding the ongoing amounts of capital required to meet drill expectations and the length of time to realize an achievable resource calculation from the property. Current market conditions and wanting to have ability to take advantage of opportunities we believe will surface in this economy, in Mexico and around the world, were also prevalent in this decision.
Our board simply agreed that it was in the best interest of shareholders, for UC to focus on its production assets and near term production through exploration targets.
So in 2012 we will see the following focus:
1) Injection of Capital required establishing the La Yesca mill to a consistent run rate of 200 Tonnes per day resulting in maximum revenue run for the company.
2) Exploration at Xora to leverage the ability to extend feedstock to the mill at La Yesca.
3) Exploration at La Pinta to leverage the ability to extend feedstock to the mill at La Yesca.
4) Exploration at Mar to better establish and delineate this resource.
5) Acquisition Opportunities with current market conditions.
For detailed explanations of our various properties and projects go to the Projects section on our renewed website at www.ucresources.net
Mexico is one of the world’s largest silver and gold producers. Extraordinary market appreciation is being realized by Canadian producers and explorers in Mexico. UC Resources is rapidly advancing in Mexico to acquire an asset base of high quality silver and gold production assets with significant upside on their exploration potential. UC Resources plans to acquire quick to production assets, consisting of previous producing mines or tailings deposits, which can be rehabilitated and entered into production in reasonable time frames.
Focusing on smart exploration combined with production and cash flow is in our opinion in the best interest of our shareholders.
We look forward to 2012 and what it will bring to UC Resources and our shareholders.
Chief Executive Officer