Montan Mining to Acquire Ore Processing Plant in Peru

Montan Mining Corp. announced that it’s signed a binding letter of intent with Goldsmith Resources SAC under which it will acquire the Mollehuaca ore processing plant in Peru. Montain will also gain mining rights for the Eladium gold mine and Saulito property, located nearby.

Highlights include:

• Plant personnel will be assisted by Mr. Michel Robert, B.A., B.A.Sc. (Hons), M.A.Sc. (Hons), Metallurgist and Mining Engineer, Director of Montan and former Senior Vice President of Pan American Silver.
• Plant is in production ramp up from 30 tpd to 150 tpd, with the required equipment already installed, and is in proximity to a high concentration of artisanal miners to provide mill feed for tolling.
• 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.

Ian Graham, CEO of Montan, commented:

The acquisition of a cash flowing gold processing plant strategically located at the epicenter of the Peruvian small scale gold mining industry will be the springboard for growth of this company and the creation of shareholder value.

Luis Zapata, the company’s executive chairman, noted:

There are currently an estimated 550,000 informal and artisanal miners in Peru all of whom fall under the 2012 formalization legislation meant to strengthen the environmental, safety and fiscal practices of this multi-billion dollar industry. As such, our plant will provide a crucial and needed service for the mining community of Peru and establish a business unit of Montan which is relatively independent of gold price changes to maintain its strong operating margins.

Click here to read the full Montan Mining Corp. press release.