American Mining Corp. of Reno last week made the first $500,000 payment toward creation of a joint venture that will upgrade the Ashdown Mill near Denio, about 100 miles north of Winnemucca.
A subsidiary of Win-Eldrich Mines Ltd. of Toronto will contribute the operating mill at Ashdown to the joint venture. American Mining Corp. agreed to provide an additional $1.5 million in operating capital to the joint venture. American Mining also will contribute improvements that are expected to double the capacity of the mill.
The new equipment will allow the Ashdown Mill to produce gold and molybdenum from the Ashdown property as well as other precious minerals and rare earths from other mining companies.
Win-Eldrich and American Mining will equally split the cash flow from the contract milling.
