MAGALIA, Calif., Aug. 16, 2004 (PRIMEZONE) -- Unico Incorporated (Arizona) (OTCBB:UNCN) today announced that the Company has secured a financing commitment for up to $1.2 million from a private investor that will be used to extend the lease of Deer Trail Mine for its wholly owned subsidiary, Deer Trail Mining Company, LLC, and ensure that the option to purchase the mine remains open.
Unico has agreed to pay all past due royalties, taxes, assessments, and all other amounts owed to Crown Mines, L.L.C. under the Lease on or before September 1, 2004. Unico Inc. shall also pay Crown Mines, L.L.C. the sum of $1,000,000 on or before September 1, 2004, as a Subject Payment, which, if Unico, Inc. elects to exercise its purchase option, the payment shall be applied toward the $4,000,000 purchase price of the leased premises, with the remaining $3,000,000 due to be paid on or before August 31, 2005 to acquire the Mine Property.
Ray Brown, Chairman and CEO of Unico, stated, "We are very pleased to have our financing for the purchase of the Deer Trail Mine in place and ahead of schedule. For years, the ownership and development of this mine has been a major focus of Unico's efforts. Now, with this initial payment secured, we are confident we will successfully complete all the terms of our purchase option for the Deer Trail Mine while concurrently reaching significant operational milestones, such as the recently announced drilling program with Lang Exploratory Drilling, due to commence on August 30, 2004."
About the Company:
Unico Inc. filed an N-54 election with the SEC on July 12, 2004 to become a Business Development Company, pursuant to Section 54 of the Investment Company Act of 1940. The Company's investment portfolio currently consists of three subsidiaries, the Silver Bell Mining Company, Inc., the Deer Trail Mining Company, LLC and the Bromide Basin Mining Company, LLC. The core focus of Unico is to provide the capital and management assistance necessary for its subsidiaries to return value to Unico shareholders.
Forward Looking Statements
The news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and such Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors which could materially affect the company and its operations are included on certain forms the company files with the Securities and Exchange Commission.