PALM DESERT, USA: Solar Energy Ltd previously announced that it was considering the acquisition of Peloton Mining Inc. Peloton’s main asset is the exploration and mining rights of 125 sq.km. alluvial property in SE Tanzania.
The only other asset of Peloton is that it owns the former producing Churchill Copper property in Northern B.C. (Magnum Mine) subject to a long term option agreement.
Solar has now completed its due diligence and intends to acquire 100% of the shares of Peloton Mining Inc. from a related third party. Peloton has recently appointed Paul Sarjeant, P Eng. as President and CEO of Peloton. Sarjeant is a geologist based in Toronto, Ontario. Peloton has also retained Randy Clarkson, P. Eng as the mining engineer in charge of designing an alluvial processing facility.
Solar intends to acquire Peloton through a share exchange and is in the process of raising three million $3,000,000 in working capital to place the first alluvial plant into operation. The $3,000,000 is expected to be a combination of debt plus equity.
Once a 4,000 m3/day plant is in full stabilized operation, Peloton’s management forecasts a three to four month payback on the initial project. On successful demonstration of the initial 4,000 m3/day operation, it is proposed to add additional 4,000 m3/day operations. The property is large enough to accommodate up to 10 operations.