31 March 2017: Honduras Mining Joint Venture


31 March 2017

Wishbone Gold Plc
(“Wishbone Gold” or the “Company”)
Wishbone Gold Plc / Index: AIM / Epic: WSBN / Sector: Natural Resources

Honduras Mining Joint Venture

Wishbone  Gold  plc,  the  trading  and exploration  company  focused  on precious  metals (gold  and silver), today announces it has signed a joint venture agreement  through  its subsidiary, Wishbone Gold  Honduras Ltd (“Wishbone”), with SION Honduras SA (“SION”), to fund the development and exploitation  of existing gold  mine  sites in  Honduras.  SION  is an associated  company  of  Scotia International  of  Nevada  Inc, a privately-owned mining  equipment supply company  based in the United  States of America. SION has an agreement with the Honduran government  to modernise and expand the Honduran mining industry.

The agreement  provides  that Wishbone  and SION will provide  equipment and expertise  to existing small mines  in  Honduras  to  enable  them  to  increase  production.  In  return,  the  mines will  agree  to  supply Wishbone’s trading subsidiary Black Sand FZE with all the output  from the mines at preferential  prices.

The benefit  to the mine is that the increased production means higher sales and higher profits.  Wishbone and SION obtain  security of supply at preferential  prices and the Honduran government  is guaranteed  that all taxes will be paid by the mines.

The aim is to recover each investment within twelve months. Thereafter the margin remains shared equally with SION. The agreement runs for 30 years.

Richard Poulden, CEO and Chairman of Wishbone Gold commented:  “Working with SION in this way implements  Wishbone Gold’s strategy of reverse integration into the small mining sector around the world. This secures supply and increases margins. The investment  will enable exploitation of the substantial base of small mines in Honduras and will lead to an increase in output  from these sources. All gold  mined  and recovered from these sites will be sold through Wishbone’s trading subsidiary Black Sand FZE.”

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For further information, please contact:
Wishbone Gold Plc
Richard Poulden, Chairman and CEO Tel: +44 207 812 0645

Allenby Capital
Nick Naylor / Nick Harriss / James Thomas Tel: +44 20 3328 5656

Beaufort Securities
Elliot Hance Tel: +44 20 7382 8300

Damson Communications
Amelia Hubert Tel: +44 207 812 0645