MILWAUKEE–(BUSINESS WIRE)–Commerce Group Corp. (Commerce) (OTCBB: CGCO) and Manti Holdings LLC (Manti), a private company based in Corpus Christi, Texas, announced that Commerce has given Manti an exclusive thirty-day option to conduct a review of Commerce’s San Sebastian property, with a view toward a pre-defined transaction. At the conclusion of the thirty-day option period, and subject to the approval of Commerce’s shareholders, Manti, or a subsidiary company, will have the right to purchase 1,300,000 shares of Commerce’s common stock by means of a private placement at $1.00 per share. The proceeds of the purchase will be used to conduct resource evaluation, development drilling, evaluation work, and to provide Commerce with working capital over the next six months. At the end of the six months, Manti will have the right to acquire Commerce’s interest in its mining venture for a combination of cash and a percentage of the net smelter return, provided that Manti maintains a minimum level of guaranteed expenditures for the project over the following two years.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Such forward-looking statements include, among others, feasibility and drilling studies related to potential open pit mining design for the Company’s gold project, mineralized material estimates, reserves estimates, potential capitalized and operating costs, drilling capability and the potential construction of the Company’s gold project. Factors that could cause actual results to differ materially from these forward-looking statements include, among others: the volatility of gold prices; potential operating risks of mining, development and expansion; the uncertainty of estimates of reserves, mineralized material and gold deposits; and environmental and governmental regulations; availability of financing; the outcome of litigation, as well as judicial proceedings and force majeure events and other risk factors as described from time to time in the Company’s filings with the Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to control or predict.