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General Metals Corporation : General Metals Issues Update on $1,000,000 Sale of Its Ghana Mining Concession

^{Published on 2009-04-02 06:14:08, Last Modified on 2009-04-02 06:15:12 - Market Wire}
 

RENO, NV--(Marketwire - April 2, 2009) - General Metals Corporation (the "Company") (OTCBB: [ GNMT ]) (FRANKFURT: GMQ) provided the following update on the sale of its 100% owned Nyinahin Mining Concession located in Ghana, West Africa.

Sunergy, Inc.(OTCBB: [ SNEY ]) committed to paying $1 million and a 5% net smelter royalty for the 150 sq km Nyinahin Mining Concession with $500,000 in cash, payable as follows: (i) $50,000 which is to be provided within 5 days of the effective date of the agreement with General Metals, (ii) $200,000 which is to be provided by December 31, 2008, and (iii) the balance of $250,000 which is to be provided by April 30, 2009; and $500,000 in stock by issuance of 2,000,000 restricted shares of common stock of Sunergy, at a deemed value of $0.25 per share.

On December 5, 2008, an Amendment to the Purchase Agreement was completed and filed in an 8-K on December 12, 2008. The Amendment allowed Sunergy to pay the balance due by December 31, 2008 either in cash or a cash equivalent acceptable to General Metals, provided the 2,000,000 shares were issued within 5 days. On December 10, 2008 the shares were issued and on December 30, 2008, General Metals accepted 500,000 unrestricted shares of Sunergy valued @ $0.50 in full satisfaction of the cash payment. To date, General Metals has received payments totaling $762,500 in cash and stock.

The Company understands that Sunergy is currently pursuing finance options which should enable it to meet its April 30, 2009 commitment to pay the final $237,500. An initial cash payment of $12,500 was received on October 31, 2008.

Company President Steve Parent commented: "We continue to remain focused on developing our Independence Mine in Nevada and therefore have converted this asset into cash and cash equivalents to assist in bringing this project into production as quickly as permitting and funding will allow. General Metals retains a first right of refusal for General Metals to re enter the project at a future date."

The proceeds from the sale will be used to retire Company payables and contribute to the advancement of the Independence Mine permitting and engineering which leads to our ability to achieve near term production without further dilution to shareholders at this time.

Notice Regarding Forward-Looking Statements

This current report contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any mineralization, development or exploration of the Nyinahin Mining Concession and Sunergy's ability to make the required payments to General Metals as they become due.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and difficulties associated with obtaining financing on acceptable terms. We are not in control of metals prices and these could vary to make development uneconomic. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.