From the Board of Directors:
- Richard Flaig
- Cassandra Bohn
- David Richter
To the stockholders of Unity GoldSilver, Mine Inc.
Our apologies for taking so long to mail this newsletter out. Many of you know that we have been working all winter to get our files updated and it has turned out to be a far more difficult process than we originally anticipated.
Originally, we had five members on the board of directors but over the last two years two of our board members passed away. They were George Wagnon and Clifford Beauchamp who was our President.
Currently we have 200+ stockholders of record with 43,697,540 shares of stock outstanding. We own 8 patented claims for 158 acres and control 76 staked Bureau of Land Management claims for 1,258 acres for a total of 1,416 acres. All of this is in the Warren District in Idaho. If you would like to find this area on the map the easiest way is to find McCall, Idaho North of McCall is Payette Lake, Warren is North East of this lake in the Payette National Forest. We currently have approximately $100,000.00 in our bank account. Prior to our contract with Endomines we had no money in the bank. Fortunately, several individuals stepped up and loaned Unity $49.900.00 to pay our outstanding bills. This will need to be repaid at some time in the future.
On June 4, 2019 we signed a ten-year open-end contract with Endomines Idaho, LLC which is a mining company based in Finland as Endomines AB. Endomines owns the Rescue mine which is near our property so we thought this would make a good fit for us. Endomines pays Unity $30,000.00 per year to lease our holdings which is due on July 1st of every year. Endomines also pays for taxes and property holding costs due yearly on the patented land ($500.00) and staked/leased BLM claims ($12,540.00).
In the contract, Endomines was required to spend $500,000.00 in the first two years for the purpose of exploration research and feasibility of profitable mining on our property. After the end of this two-year period Endomines was to determine if they wanted to continue with the contract. Unfortunately for us the Covid Virus hit in the fall of 2019 and Endomines was forced to stop all its mining and exploration on its North American holdings. In the contract there is a “Force Majeure” clause which basically states that in case of an “Act of God” Endomines shall not be deemed in default of the contract. The Covid Pandemic would be considered an “Act of God. To date the contract is still in force and as many of you know the federal government has recently declared the Covid Pandemic over.
In our last conversation with the President of Endomines Idaho, Seppo Tuovinen, he informed us that they were currently working through a group in London England trying to raise funding to begin their North American operations again. Unfortunately, their plan is to only provide environmental maintenance on their properties for the current year which includes our property.
Endomines is currently mining in Finland and if you look at their website, they report that their mining profits are up 215% for the current year. The Unity Board of Directors’ position is that Endomines is a financially strong, legitimate mining company and is still our best bet for moving forward. One thing for certain is that the mining business is a tough business generally requiring millions of dollars just to do research not to mention all the governmental regulations that we must deal with. At our Warren property we must deal with the BLM, The US Forrest Service, and the State of Idaho and all their requirements such as the Department of Environmental Quality(Water). One of the things that works against us at the Warren property is the lack of records as to the reserves of gold on the property. The old timers that mined the property did not report any more than what they were required too. In today’s world, expensive exploration, drilling, and development is required in order to prove the property and bring it into production. Unity is fortunate to have a strong company like Endomines to explore our property.
Last fall we were approached by Sydney Resources Mining wanting to buy our mining property. Sydney is a mining operation currently in exploration and development near our location. The offer was $650,000.00 of Sydney stock in exchange for surrendering our stock, so it was basically a stock swap. If we agreed to the stock swap Sydney required that no stock could be sold for two years. Sydney also offered to give Unity stockholders $500,000.00 of the first $1,000,000.00 refined from the property which would likely take a few years. In order to go with Sydney, we would need to break the contract with Endomines. On the advice of our lawyer, he warned us that Endomining probably would not let us out of the contract without a fight which could be long and expensive. Another problem was that Sidney would not put an offer in writing which our lawyer warned was a potential red flag.
One of the questions frequently asked of us is, Is there a market for Unity Stock? Unity is a privately held stock that does not trade on any stock exchange so there is no market for it. If there is someone that would like to buy more Stock, we can likely find someone that would like to sell their shares. Another question asked is, what is the value of the stock? The stock is only worth what the value of our assets are. At this time, we do not know what the land would be valued at since it is not only land but the mineral rights. Patented land is rare and is generally highly sought after in the mining industry. As of the 1990s the US Government no longer allows patenting of land.
At this point in time the question we need to address for our stockholders is what does the future look like for Unity GoldSilver? Unfortunately, the reality is that even if next year Endomining begins its two-year requirement to do its exploration and research, it would probably be another three years before any kind of production would begin. But there is some good news. Endomining is at least paying the bills and gold is now trading at around $2,000.00 per ounce. With gold prices at this level, it may make mining more lucrative and expedite the process.
We hope that this has helped to update our share holders as to our current situation. If anyone wants a copy of the contract with Endomining that can be provided by request and an email copy can be forwarded. We also would like to bring our board membership back up to five so if there is anyone interested in being on the board, please let us know.
We are in the process of updating our website. The website when updated will include all our contact information. We have added in this letter a label with our current contact information. Please attach it to something near your certificate so you will know how to contact us. It is very helpful to us if when there is a change in your information you would forward that information to us.