Eastern Resources acquires Montana Tunnels Mining and Elkhorn Goldfields

9 April 2012 (Last Updated April 9th, 2012 18:30)

Eastern Resources has completed the acquisition of Montana Tunnels Mining and Elkhorn Goldfields, which will now become wholly owned subsidiaries of the company.

Eastern Resources has completed the acquisition of Montana Tunnels Mining and Elkhorn Goldfields, which will now become wholly owned subsidiaries of the company.

Following the merger, the company will be headquartered in Colorado, US and Montana Tunnels Mining and Elkhorn Goldfields will constitute the company's only operations.

Eastern Resources chairman and chief executive officer Patrick Imeson said that over the past 12 years the company has strategically assembled a collection of mining assets in Montana, and the merger represents a major milestone for Montana Tunnels Mining and Elkhorn Goldfields.

"This transaction positions us for growth, providing the opportunity to continue development and near-term production and providing industry jobs to Montanans, as well as the prospect of returns to our shareholders," said Patrick.

Eastern Resources intends to continue the development of Elkhorn's Golden Dream mine which is expected to obtain full production by the end of 2012.

The company plans to initiate development work at the Montana Tunnels mine and is targeting the re-start of mining ore and milling operations in 2014.

The average annual combined production at both the mines is expected to produce an average of 150,000 gold and gold equivalent ounces per year.