Wishbone Gold PLC Honduras Project Update (6052Y)
December 07 2017 - 1:00AM
UK Regulatory
TIDMWSBN
RNS Number : 6052Y
Wishbone Gold PLC
07 December 2017
7 December 2017
Wishbone Gold Plc
("Wishbone Gold" or the "Company")
Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural
Resources
Honduras Update
Wishbone Gold, a trading and exploration company focused on
precious metals (gold and silver), is today updating its
shareholders regarding its Honduras mining operations.
As announced on 31 March 2017, the Company's strategy in
Honduras is to fund the development and exploitation of existing
gold mine sites and modernise the artisanal mining sector. Wishbone
Gold and its partners provide equipment and expertise to existing
small mines in Honduras to enable them to increase production. In
return, the mines agree to supply Wishbone Gold's trading
subsidiary, Black Sand FZE, with all the output from the mines at
preferential prices. The benefit to the mine is that increased
production results in higher sales and higher profits. Wishbone
Gold also ensures that there is no environmental damage from the
processing and accounts to the Honduran government correctly for
all taxes.
The operations in Honduras were temporarily stopped by the worst
Caribbean hurricane season on record. Although covered less by the
media than the hurricanes in the Caribbean, the weather was equally
bad across Central America. The weather has now improved and
construction crews are back onsite working to complete the
buildings to house the processing plant. The plant and equipment
had already been delivered to site before the weather stopped
work.
Prior to the wet season, most of the equipment was installed but
commissioning activities were suspended as new buildings could not
be completed prior to the hurricanes. The weather has now improved
and the buildings are expected to be completed in the next couple
of weeks.
The current Honduran election dispute remains ongoing with
demands from the opposition for a recount or to re-run the
elections. The Company's local partners have reported that the
demonstrations and protests have been largely limited to the
capital, Tegucigalpa, but the position is unlikely to be stable for
a few more weeks. Whichever party is eventually declared the
winner, the board believes that Wishbone Gold's business model will
still work. Unemployment, illegal mining and collection of taxation
are priorities for both political parties. Wishbone Gold has agreed
with its JV partners that the commissioning team from the United
Sates will only fly down once the political situation is
stable.
Richard Poulden, Chairman and CEO of Wishbone Gold, commented:
"Wishbone Gold's strategy of reverse integration into the small
mining sector remains our priority and we hope to announce further
plans in this area shortly. We will provide a full trading update
early in the New Year but wanted to share the positive news from
Honduras as soon as possible".
For images of the site in Honduras and more information on
Wishbone Gold please visit the Company's website at
www.wishbonegold.com.
Enquiries:
Wishbone Gold Plc
Richard Poulden, CEO and Chairman Tel: +44 207 812 0645
Allenby Capital
Nick Naylor / Nick Harriss Tel: +44 20 3328 5656
Beaufort Securities Limited
Elliot Hance Tel: +44 20 7382 8300
Damson Communications
Abigail Stuart-Menteth / Amelia Hubert Tel: +44 207 812 0645
This information is provided by RNS
The company news service from the London Stock Exchange
END
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