VIRGINIA CITY, Nev., Feb. 23, 2004 (PRIMEZONE) -- GoldSpring, Inc. (OTCBB:GSPG): The February 10th announced Accredited Investor Restricted Private Placement has received commitments for the full subscription and the offering is closed. The majority of subscribers are existing GoldSpring shareholders, many of whom had requested the opportunity for future participation in private financing of the Company. Some Directors and Managers also participated.
Proceeds will be used to establish various financial reserves recommended by AMEX, listing fees for the AMEX, for additional precious metals processing equipment and general Working Capital.
A complete direct electrowinning plant has been purchased and is being shipped today from Vancouver, BC, Canada to Plum Mining LLC's American Flats location where the Billie The Kid gold and silver ore are being processed. This plant is modular in construction and is expandable without interruption. This plant will work alongside the Pilot Plant previously installed at the site and will enable more rapid and substantial gold and silver recovery.
The high grade Mother Lode mine acquisition in northern California is proceeding. We have verified the permitting and claim title issues. The existing Plan of Operation, however, was for a family-operated mine and the Company is investigating a plan to stage a more robust operation in the near term. The preliminary indication is positive, but we require a more definitive understanding prior to closing. More to follow.
The Company's Big Mike Copper Project is being prepared for process testing and evaluation for daily production volumes that will form the basis for the Plan of Operation to be filed prior to production, which is expected to commence in third quarter 2004. The Company has had considerable outside interest expressed in this project and is in discussion with companies that have additional copper opportunities available and industry expertise to determine potential synergies of operation. More to follow.
Further information on the Company's operations and future financing activities will be forthcoming as details are available for publication.
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements