equinox gold corp

Gold Mountain Completes $3,000,000 Property Payment to Equinox Gold

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.

For Further information, please contact:
Gold Mountain Mining Corp.
Kevin Smith, Director and Chief Executive Officer
Phone: 604-309-6340
Email: ks@gold-mountain.ca
Website: www.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



View source version on accesswire.com:
https://www.accesswire.com/647852/Gold-Mountain-Completes-3000000-Property-Payment-to-Equinox-Gold

News Provided by ACCESSWIRE via QuoteMedia

The Conversation (0)
gold mountain mining

Gold Mountain Mining

Exploring and Developing Highly Prospective Gold Assets in British Columbia

Exploring and Developing Highly Prospective Gold Assets in British Columbia Keep Reading...
Horizon Gold

Excellent RC drilling intercepts returned across Snook, Cobia, and Alma May, including 44m @ 5.08g/t Au at Snook

Horizon Gold Limited (ASX: HRN) (‘Horizon’ or ‘the Company’) is pleased to announce some spectacular gold intercepts returned from RC drilling at its 100% owned Gum Creek Gold Project (‘Gum Creek’ or ‘the Project’) located in the Mid-West Region of Western Australia. Final assay results for... Keep Reading...
Gold bars with US Federal Reserve flag.

Editor's Picks: Gold, Silver Prices Bounce, Expert Outlines Fed "Doom Loop" Scenario

The gold price fell below the US$4,100 per ounce level midway through the week, but recovered quickly to close Friday (October 9) near US$4,200. Silver followed a similar trajectory, sinking as low as US$58.75 per ounce on Thursday (October 8) before bouncing back to finish the period just under... Keep Reading...
Gold nuggets with text: "5 Top Australian Mining Stocks This Week."

Top 5 Australian Mining Stocks This Week: Dalaroo Metals Gains 67 Percent on Drill Results

Welcome to the Investing News Network's weekly round-up of the top-performing mining stocks on the ASX.This week's top five gainers includes companies focused on gold, critical minerals, helium and more.Read on to discover this week's top gaining Australian mining stocks on the ASX and what... Keep Reading...
andrew o'donnell, stock chart

Andrew O'Donnell: Gold, Critical Minerals — How I Find "Asymmetric" Opportunities

Andrew O'Donnell of the Market Mindset explains how he's using artificial intelligence tools to unearth overlooked opportunities in the junior mining space, emphasizing the importance of tracking companies that follow through on their plans. "I've got a long-term horizon, and that I think is the... Keep Reading...
Inside of building at mine site.

The Two Asset Transition: Why Multiple Producing Assets Matter for Investors

Gold investors tend to focus on the gold price, grades and costs when assessing a producer. The number of mines a company operates gets less attention, but it shapes how much risk shareholders carry and how a company can grow.Global investment manager VanEck said that when you buy a gold... Keep Reading...

Interactive Chart

Latest Press Releases

Related News