DENVER, CO -- (Marketwire) -- 02/13/13 -- Eastern Resources, Inc. (OTCBB: ESRI), a Delaware corporation ("ESRI" or, the "Company"):
The Board of Directors of Eastern Resources Inc. is pleased to announce that it has executed an advisory agreement with a New York registered broker-dealer with a focus on the precious metals mining sector. This investment bank will assist the Company in its efforts to raise up to $200 million for use by the Company in advancing its Montana Tunnels Mine and Golden Dream Mine projects and for related capital restructuring, liquidity enhancement and working capital purposes.
Through its operating subsidiaries, ESRI is the owner and operator of three permitted mines located near Helena, Montana. Montana Tunnels Mining Inc. ("MTMI") is the owner of the Montana Tunnels Mine and mill. The Montana Tunnels Mine which commenced production in 1986, under prior ownership, has produced 1.7 million ounces of gold, 30.8 million ounces of silver, 400 million lbs. of lead, and 1.1 billion lbs. of zinc. In 2009, the Montana Tunnels Mine was placed on care and maintenance pending MTMI's permitting of the "M" Pit expansion, which targets a proven and probable reserve of 38 million tons of ore containing 480,000 ounces of gold, 7.9 million ounces of silver, 124 million lbs. of lead, and 370 million lbs. of zinc. The "M" Pit expansion is projected to have an 8.5 year mine life, and is open at depth. Subject to financing, the "M" pit requires approximately 16 months of pre-production work prior to the restart of production.
ESRI's wholly owned subsidiary, Elkhorn Goldfields Inc. ("EGI"), is the owner of the Elkhorn claims located approximately 13 miles from Boulder, Montana. The claims have four separate ore bodies that were subject to approximately 400,000 feet of core drilling by its previous owners, delineating approximately 1.6 million ounces of gold. EGI has successfully permitted the Golden Dream Mine as an underground mine and has completed approximately 1,000 feet of underground development, installation of a water treatment system, and surface infrastructure required for development of the mine. Subject to financing, EGI expects to intercept the main ore body after an additional 1,200 feet of main access ramp development over a pre-production period of six months. The resource of the current development plan is targeting 1.2 million tons of ore containing 258,000 ounces of silver and 9.5 million lbs. of copper. The Golden Dream Mine is projected to produce approximately 50,000 ounces per year over a 5 year mine life and with the deposit currently open at depth and on strike.
"Our selection of this investment bank as an advisor to ESRI was based on the experience of their key people in the mining space and their previous knowledge of ESRI's assets. We are pleased to have this quality group assisting us in financing the development of our Montana assets," stated Patrick Imeson, CEO of ESRI.
About Eastern Resources, Inc.
Eastern Resources, Inc. is an early stage, U.S. public company currently pursuing a business strategy in the precious and base metals mining sector in the United States. On April 6, 2012, the Company completed the acquisition of Montana Tunnels Mining, Inc. and Elkhorn Goldfields, Inc., and these two companies are now wholly owned subsidiaries of the Company.
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