Gold Mountain Mining Corp. ("Gold Mountain" or the "Company") (TSX.V:GMTN)(OTCQB:GMTNF)(Frankfurt:5XFA) is pleased to announce it has made the first $3,000,000 property payment to Equinox Gold Corp. ("Equinox") with respect to the acquisition of the Elk Gold Project
- The Company acquired the Elk Gold Project for $10,000,000 from Equinox for a $1,000,000 cash deposit and $9,000,000 interest free loan.
- The initial May 16th 2021 payment is a major milestone as it was perceived as one of the greatest risks surrounding the Elk Gold Project.
- Gold Mountain maintains a strong treasury to continue development and exploration of the mine.
- Remaining two $3,000,000 payments, due May 16th, 2022 and May 16th, 2023, are anticipated to be made with proceeds from commercial production.
"This property payment represents yet another major milestone to de-risk the Elk Gold project," commented CEO Kevin Smith. "With our mining costs solidified, Ore Purchase Agreement in place, three MOU's with surrounding indigenous communities and this property payment complete, the final piece is our mining permit amendment. Based on our ongoing discussion with the Mine Review Committee stakeholders and Provincial Regulators, permitting timelines are on schedule and expected to land in late June of this year. Once received, the Gold Mountain team will be in a position to not only continue expanding our resource through targeted drill programs, but also begin mining our high grade veins and transition into commercial production."
The Elk Gold Project was originally acquired in May 2019 from Equinox when gold was at $1250/oz. The Company negotiated a favorable purchase price of $10,000,000, comprising a $1,000,000 cash deposit and an interest free $9,000,000 promissory note (the "Promissory Note"). The Promissory Note is repayable in three annual instalments of $3,000,000 with the first payment having been made on May 16th, 2021. The total amount due under the Promissory Note is fully discharged if the Company pays $8,500,000 prior to May 16, 2022.
About Gold Mountain Mining
Gold Mountain is a British Columbia based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project, a past-producing mine located 57 KM from Merritt in South Central British Columbia. Additional information is available at www.sedar.com or on the Company's new website atwww.gold-mountain.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward- looking statements include statements that are based on assumptions as of the date of this news release and are not purely historical including any information or statements regarding beliefs, plans, expectations or intentions regarding the future and often, but not always, use words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward looking statements in the press release include but are not limited to: the timing to receive the amendment to the mining permit, the continued expansion of the resource at the Elk Gold Project, the method of funding the final two Equinox Payments due in May 2022 and May 2023. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive board, shareholder or regulatory approvals; the price of gold; and the results of current exploration. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Gold Mountain disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For a comprehensive overview of all risks that may impact the Company, please see the Filing Statement filed on Gold Mountain's SEDAR profile on December 15, 2020
SOURCE:Gold Mountain Mining Corp
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