Sold – Southwestern US Gold & Silver Processing Mill

This Southwestern US Gold/Silver Processing Mill is centered between many small mining operations that contain over 1 million tons of above-ground Ag-Au dump ore. The mill uses conventional gravity and flotation technologies to produce gravity as well as a bulk, poly metallic Pb-Zn-Cu-Ag-Au concentrates, typical of the region’s ores. It features an active-status captive processing and tailings 110(2) reclamation permit. This type of permit typically takes 5-10 years to obtain from the state. While the mill’s permit allows for processing up to 200 tons of ore per day, some CAPEX will be required to upgrade operations to reach that capacity. At 200TPD the mill’s annual revenue forecast is $14M with an EBITDA approaching $9M, based on processing easy to access regional above-ground dump ore.

The owners have invested $1.5M into upgrading/maintaining the mill. The company is debt free. Today this milling business is not operating, waiting on capital infusion to commence operations which can run 365 days per year. It will be the only toll/custom milling and refining company in the state servicing small mining operations.

General Information
Year Established: Constructed in 1989
Employees: 2

Sale Price: $3,600,000 – Flexible Terms
Purchase Includes: Mill, real property, retaining dam and equipment worth $1.5M, Active 110(2) reclamation permit.
Estimated Revenue Potential: $14M per year at 200TPD
Estimated EBITDA Potential: $9M per year at 200TPD

Market Outlook
Competition: There are no other toll mills in the state that compete in the marketplace for gold and silver ore concentration.

Growth and Expansion: There are many mines in the area that could feed the mill or be purchased as feeders. Increasing the mill’s capacity to 400TPD could produce an annual EBITDA of $18M/year. Addition of a smelter to the operation could skyrocket profits.

About the Sale
Project is being sold due to lack of working capital. Most of the sale price can be financed by the sellers and paid for out of production proceeds. Sellers willing to stay on and complete the development of the project for the new owner given mutually agreeable compensation.

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