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Timberline Resources Corporation (TSXV:TBR) announced that joint venture partner Highland Mining, LLC has sold its 50% interest in Butte Highlands JV, LCC to Montana State Gold Company, LLC,, a privately-owned Montana limited liability company. Highland will maintain its 50% interest in the Timberline joint venture Butte Highlands Gold Project.
Timberline Resources Corporation (TSXV:TBR) announced that joint venture partner Highland Mining, LLC has sold its 50% interest in Butte Highlands JV, LCC to Montana State Gold Company, LLC,, a privately-owned Montana limited liability company. Highland will maintain its 50% interest in the Timberline joint venture Butte Highlands Gold Project.
As quoted in the press release:
Timberline will continue to own a 50-percent carried-to-production interest in BHJV, as it has since the inception of the joint venture to develop Butte Highlands. MSGC has acquired Highland’s loan in the amount of approximately $24-million for development costs incurred at Butte Highlands to-date and will fund all remaining mine development costs through to commercial production. MSGC’s funding source is ISR Capital, a private investment and merchant-banking firm headquartered in Boise, Idaho. Both Timberline’s and MSGC’s shares of development costs, including the loan acquired by MSGC, will be repaid from proceeds of future mine production.
Paul Dircksen, Timberline’s Chief Executive Officer, commented:
We are pleased to welcome MSGC as our partner at Butte Highlands. While we had earlier anticipated gaining 100-percent ownership of the project, Ron Guill’s decision to sell Highland Mining to a well-funded organization with a mandate to create jobs through commercial production provides Timberline and its shareholders with an attractive alternative. We now envision the achievement of production at Butte Highlands without assuming the development risk and without dilutive equity financing, burdensome debt financing, or the sale of valuable royalties that would have inevitably been required had we funded mine development ourselves. Rather, we are effectively in the same position as we were with Ron; we have a 50-percent carried-to-production interest at Butte Highlands while we advance our Lookout Mountain gold project in Nevada toward production.
Click here to read the full press release.Â
