Global mining services company, Capital, has chosen mining-industry stable Elko, Nevada for its United States headquarters.
The company said on Friday that it chose Elko as the U.S. market entry point due to the area’s mining industry and strategic location. Capital offers mining operations options for drilling, mining, maintenance and geochemical lab services. It’s also spread out over four continents, including Africa, South and North America and Asia.
The Elko location will focus primarily on exploration and assay services using Chrysos PhotonAssay technology. This new technology aims to produce sustainable results by reducing emissions by 50 per cent, using 50 per cent less energy than traditional methods, and generating zero hazardous waste.
Capital plans to invest roughly USD$15 million in the region initially, creating over 160 jobs with an average wage of nearly USD$39 per hour. The overall 10-year economic impact on the region is estimated to surpass USD$1.3 billion, generating over USD$13 million in new tax revenue.
To offset costs and rapidly deploy resources that will support the entire western U.S. mining industry, Capital applied for state sales tax, modified business tax, and personal property tax abatements. Mudd and James Brown, Capital’s head of tax, presented the project to the Nevada Governor’s Office of Economic Development Board on May 23.
They discussed the project and answered questions. The board expressed support for the project and approved the application unanimously. Each dollar abated in the application is expected to generate $756 of economic output and yield roughly $7.65 in new tax revenue.
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Capital already has drill rigs in the field
Capital has been moving fast. It already has getting drill rigs in the field for the Leeville, Carlin and Cortez jurisdictions after securing a deal with Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD) and Newmont Corporation (TSX: NGT) (NYSE: NEM) joint venture, Nevada Gold Mines, last year.
U.S. Gold Corp (NASDAQ: USAU) also represents a potential opportunity for Capital. The company’s Keystone Project is located on the Cortez trend in Nevada while its Maggie Creek project is on the Carlin.
Additionally, Capital hopes to have its Laboratories Division — MSALABS USA — operational before the end of 2024.
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U.S. Gold Corp. is a sponsor of Mugglehead news coverage
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