RENO, NV – August 15, 2013 -- General Metals Corporation (OTCQB: GNMT): (www.generalmetalscorporation.com), a gold and silver mining company, announced today the release of its Annual Report in the Securities and Exchange Commission’s Form 10-K. The Report summarizes the Company’s results for its most recently completed fiscal year ending on April 30, 2013. This report along with other Company filings is available to the public over the Internet at the SEC's website at (http://www.sec.gov).
Daniel J. Forbush, Company President and CEO writes:
Obtaining funding in the current market climate is difficult, especially for a OTC market listed company. We have therefore been working diligently during the past year to get a listing on the Toronto Ventures Exchange. This activity was suspended when the negotiations with Open Gold Corp. began.
The accomplishments as identified in the Annual Report are:
-identified and reviewed several funding options and proposals including discussions with a number of different companies, investment banks about transactions to provide the funds to bring the Independence Project to the brink of production.
-negotiated and agreed to a Letter of Intent with Open Gold Corp. on a transaction to bring $2.0 million in funding to advance the Independence Project. See Form 8-K filed February 1, 2013.
-completed the definitive agreement with Open Gold Corp. envisioned in the LOI identified above. See Form 8-K filed May 23, 2013.
-completed a small extractive metallurgical study to determine a method to increase the recovery of silver from the ore.
-received $427,429 in funding during the year from private placements of our stock. Since year end we have obtained an additional $57,250 in funding.
-reviewed a draft Preliminary Economic Assessment for the Independence Project (PEA) which evaluates the current economic parameters of the property within a plus or minus 50% variability determining additional data needed to be acquired before the PEA could be properly completed.
-resubmitted the updated Technical report in the Canadian National Instrument 43-101 format from the qualified person to the Toronto Ventures Exchange (TSX-V) responding to a second letter of requested clarifications from TSX-V. Approval has been delayed because the Company did not file the listing application due to the discussions described above.
-reemphasized the Company’s application to drill a water well on its 480 acres of fee land through the State’s Division of Water Resources. This work by Dyer Engineering of Reno, Nevada should lead to drilling a well there in the coming year.
During fiscal year 2014, the Company is aggressively proceeding with closing a new round of funding of $2.0 million or more to move the Independence project to the brink of production. Recently, the Company updated the Independent Technical Report in the Canadian National Instrument 43-101 format including answers to the review points previously received from Canadian authorities. This report does not meet SEC Industry Guide 7 guidelines but will provide information in a compliant format for Canadian and European investors and can be used in the application for a listing on the Toronto Ventures Exchange. The Company expects a favorable ruling on this application in the near future. More broadly, Dyer Engineering is also continuing efforts to complete the permitting process necessary to place the Independence Mine into commercial production. Assuming adequate funding can be obtained, the process will take from 8 to 16 months from submission of our Plan of Operations to the BLM depending on whether the BLM determines that an Environmental Assessment or an Environmental Impact Statement is required. We estimate the plan of Operations will be submitted before the end of the calendar year.
The Company anticipates being able to secure necessary permits to proceed to production, in an expeditious fashion. We expect initial mining will start on the Hill Zone and we are completing all necessary work to be able to finalize permits to begin there. Additional drilling and assaying planned to further delineate the Hill Zone mineralization will allow us to maximize cash flows early in the production cycle. We will provide additional information about this program in a subsequent release.”
For the year ending April 30, 2013, the Company incurred a loss of ($882,116.00) slightly higher than that incurred in fiscal year 2012 ($803,968.00) due higher exploration and development costs, management and consulting fees and professional fees. The vendors for approximately half of these expenses accepted our shares as payment which we took as a significant vote of confidence in our Company.
About General Metals Corporation
General Metals Corporation (OTCQB: GNMT); www.nevada-goldmine.com, is an aggressive junior mining exploration and development company, based in Reno, Nevada. The company is actively pursuing the re-opening of its Independence gold and silver mining project strategically located in the prolific Battle Mountain Mining District of Nevada.
Cautionary Note to U.S. Investors - The U.S. Securities and Exchange Commission permits U. S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as "measured", "indicated", and "inferred" "resources", which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in General Metal's form 10-K, which may be secured from General Metals or the SEC website at: http://www.sec.gov.
Notice Regarding Forward-Looking Statements: This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and in Canadian securities legislation. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that Open Gold will complete the acquisition of the Independence Project or the financing, a project can be found to put into General Metals, the timing of the Special Meeting that General Metals share price will in any way be affected by the Open Gold share price. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate.
For further information, please contact:
General Metals Corporation
1155 West Fourth Street, Suite 210
Reno, NV 89503