MIAMI, June 16, 2009 (GLOBE NEWSWIRE) -- Omega Commercial Finance Corporation (Pink Sheets:OCFN) is pleased to announce that it has signed a Definitive Agreement to acquire from Ruby Trust Mining Company SAC (RTM), a mining operation located in the mountain village of Cusco, Peru.
As previously announced, Omega is currently looking to diversify its interests with the gold commodities market by finding undervalued and underdeveloped mines with proven and probable reserves. After proper due diligence, management believes that they have found its first acquisition.
The Trust Ruby mine is a gold mine with some copper. The ore is oxide, making for simplified recovery. The plant, designed by BBA Engineers, is designed to initially process 250 metric tons daily. This will be expanded to 500 tons per day once the vein direction has been determined. By adding a second shift, production expectations would be quadrupled. All mining operations will be run and operated by RTM engineers and its management.
Jon S. Cummings IV, CEO stated, "Over the last decade gold has seen consistent growth in valuation going from $300 to $1000 an ounce. We anticipate a price to be paid from all the recent government bailouts. With inflation on the horizon, and a continued weakening of the U.S. dollar, commodities are expected to show exponential increases in prices. Omega feels that investing in commodities is an excellent hedge and investment in our future. We are very fortunate to find a mine with such excellent operations and management in place. Thomas W. Foster of Ruby Trust Mining Company SAC is a seasoned professional with over 40 years of expertise in all phases of mining. Additionally, mining in South America assures us of plentiful labor at a substantially lower operational and labor cost rate than mining in the U.S. or Canada."
The Definitive Agreement calls for a share exchange and funding for the Trust Ruby mine. Please see the company's S8 filing with the SEC for more details.
Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Omega Commercial Finance Corp.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Omega Commercial Finance Corp. filings with the Securities and Exchange Commission.