March 8th: Convergence Ethanol Completes Acquisition of Choco Placer Mine
Las Vegas, NV – March 8, 2012 – Convergence Ethanol (OTCBB: CETH) (the "Company") is pleased to announce it has acquired the gold-platinum Choco Placer mining operation (the "Project") near Union Panamericano, Colombia.
The Project consists of a contiguous land package covering 200 hectares with a purchase option agreement to acquire an additional 800 hectares of adjacent land. All required exploration, environmental and mining permits have been approved by national and regional authorities of Colombia. In addition, the Project has underlying support from surrounding citizens and communities.
The Choco Placer mine was in production as recently as August 2011 before operations were halted to pursue access to capital markets. Average weekly production at the mine was 21.8 troy ounces of gold and 7.3 ounces of platinum using standard alluvial separation techniques. The Company has verified that less than three percent of the land package has been worked. Previous operations included an on-site base camp for 20 laborers working two daily 10 hour shifts.
"Choco affords us the ability to implement our near-term business strategy to become a gold producer as quickly as possible," said President Joseph Arcaro. "Ultimately, it will allow us to fund our long-term growth plan to conduct exploration for lode prospects, where we will focus on identifying and proving up multi-million ounce gold resources."
Pursuant to the Agreement, the Company will issue 100,000,000 shares of common stock to Mineros Alpha S.A.S. in exchange for the Project concessions. The Company also plans to change its name to Indemia Gold to more accurately reflect its new business operations.