Montan Mining Signs Agreement for Toll Milling in Peru

Montan Mining has executed a final, definitive agreement with goldsmith resources to acquire the producing Mollehuaca gold processing plant. It has also acquired mining rights for the nearby Eladium Gold Mine as well as the Saulito property.

As quoted in the press release:

• Montan Mining Corp. (TSXv: MNY) (FSE: S5GM) executes final definitive agreement with Goldsmith Resources SAC for the acquisition of an operating gold processing facility (toll mill) and a mining operation in southernPeru.
• Marquest Capital Markets engaged as lead for C$3 Million Brokered Private Placement.
• Capital will be used to ramp up production from 30 TPD to as-built capacity of 150 TPD.
• Peruvian small-scale gold mining industry is undergoing government supported formalization to strengthen the environmental, safety and fiscal practices of the industry, increasing demand for permitted mills.

Montan executive chairman, Luis Zapata, said:

We are pleased to announce the signing of the definitive agreement for the acquisition of what will be Montan’s flagship asset: the Mollehuaca Gold Processing Facility. In addition, the concurrent financing led by Marquest will ensure that Montan can immediately carry out a planned production ramp up from the current level of 30 TPD to the as-built capacity of 150 TPD. We are very pleased to have strong financial partners both in Canada and Peru and look forward to promptly delivering positive cash flow from our ongoing operations.

Click here to read the Montan Mining press release