gold mountain mining

Gold Mountain Mining Corp. Signs Ore Purchase Agreement With New Gold Inc.

Gold Mountain Mining Corp. (TSXV:GMTN)(FRA:5XFA)("Gold Mountain" or the ("Company") is pleased to announce that it has entered into an Ore Purchase Agreement ("OPA") with New Gold Inc. ("New Gold") for a three-year term


  • Gold Mountain will deliver ore to New Gold's New Afton Mine located 130km from the Company's Elk Gold Project in Kamloops, British Columbia.
  • Pursuant to the OPA, New Gold has agreed to pay Gold Mountain in a timely manner based on the tonnes and grade of the ore delivered to the mill independent of when it's processed.
  • The OPA provides the Company with an efficient path towards initial production following the receipt of necessary permits.

Kevin Smith, CEO of Gold Mountain, states "Signing the OPA with New Gold represents another key milestone and partnership for Gold Mountain. This agreement will help advance initial production at the Elk Gold Project by eliminating the time and capital required to build on-site infrastructure. We are confident in our ability to execute on our mine plan and deliver significant value for our shareholders."

Ore Purchase Agreement

Under the terms of the OPA, Gold Mountain will deliver 70,000 tonnes of ore per annum, approximately 200 tonnes per day, to the mill located at New Gold's New Afton Mine situated 130km from the Elk Gold Project, in Kamloops, British Columbia. The OPA has a term of three years, giving Gold Mountain sufficient time to scale its business accordingly.

The ore will be sampled and weighed at the Elk Gold Project site to determine the contained ounces of gold and silver being delivered to the New Afton Mine. Following delivery of the ore, New Gold will pay Gold Mountain at the end of each calendar month based on the value of the gold and silver in the ore, net of the agreed metallurgical recovery and concentrate selling costs. New Gold then has 17 days to deliver payment for the ore. The terms of the OPA mitigate the variance and volatility of operational throughput for Gold Mountain and allows the Company to avoid any risk of recovery.

By securing a world-class toll milling partner in New Gold, along with the previously announced mining contract executed with Nhwelmen-Lake LP, Gold Mountain has the operational partners in place to increase shareholder value. The terms of the OPA supports the economic analysis set forth in Elk Gold's 2020 PEA posted on SEDAR ( and available for download at

The OPA is effective upon the first delivery of ore to the New Afton Mine. Prior to the first delivery of ore, the parties must settle on a sampling procedure for tracking the tonnes and grade delivered, Gold Mountain must receive the Permit (as defined below) and New Gold must obtain a permit amendment to allow for the processing to occur.

Mining Permit Update

Gold Mountain is pleased to provide an update on the progress of the Joint Permit Amendment Application that was submitted in May 2020 (the "Permit") and will allow for the extraction of 70,000 tonnes per annum of ore. The Permit was accepted through the application screening phase of the application review and Gold Mountain has responded to the first round of technical review questions that were provided by the Ministry of Energy, Mines and Low Carbon Innovation, the Ministry of Environment and Climate Change Strategy and the Ministry of Forests, Lands, Natural Resources and Rural Development. Gold Mountain is anticipating a second (final) round of technical review questions from the regulators in the coming months prior to completing the Permit review process.


Gold Mountain is committed to the health and safety of all employees, contractors, and local communities in which they operate. The Company has implemented additional controls and safety protocols in accordance with Canadian guidelines and government requirements related to the COVID-19 pandemic.

About New Gold Inc.

New Gold is a Canadian-focused intermediate gold mining company with a portfolio of two core producing assets in Canada, the Rainy River and New Afton Mines. The Company holds an 8% gold stream on the Artemis Gold Blackwater project located in British Columbia and a 6% equity stake in Artemis. The Company also operates the Cerro San Pedro Mine in Mexico (in reclamation). New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility. For further information on New Gold, visit

About Gold Mountain

Gold Mountain is a BC-based gold and silver exploration and development company focusing on the expansion of the resource at the Elk Gold Project, a past producing mine located 57 km from Merritt in South Central British Columbia.

For further information, please contact:

Gold Mountain Mining Corp.
Kevin Smith, Director and Chief Executive Officer
Phone: 604-309-6340

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, Gold Mountain obtaining its mining permit, Gold Mountain hauling ore to New Afton, New Gold paying Gold Mountain in a timely manner, the ability of Gold Mountain to execute on its mine plan, the terms of the Permit, 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; New Gold's ability to obtain its custom milling permit, Gold Mountain's timely receipt of the Permit 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 dated December 14, 2020 a copy of which is available on Gold Mountain's SEDAR profile at

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE: Gold Mountain Mining Corp

View source version on

News Provided by ACCESSWIRE via QuoteMedia

The Conversation (0)

Newmont Announces Successful Early Tender Results for the Exchange Offers and Consent Solicitations

Newmont Corporation (Newmont or the Company) announced today, in connection with the previously announced offers to exchange (each, an "Exchange Offer" and, collectively, the "Exchange Offers") any and all outstanding notes (the "Existing Newcrest Notes") issued by Newcrest Finance Pty Limited, a wholly owned subsidiary of Newmont ("Newcrest Finance" and, together with Newmont, the "Issuers"), for (1) up to $1.65 billion aggregate principal amount of new notes to be issued by the Issuers (the "New Newmont Notes") and (2) cash, and related consent solicitations (each, a "Consent Solicitation" and, collectively, the "Consent Solicitations") to adopt certain proposed amendments to each of the indentures governing the Existing Newcrest Notes (the "Existing Newcrest Indentures Amendments"), that the Issuers have received tenders with respect to the aggregate principal amounts of Existing Newcrest Notes set forth below, which constitute the requisite consents needed to adopt the Existing Newcrest Indentures Amendments with respect to each of the three outstanding series of the Existing Newcrest Notes that are subject to the Exchange Offers and the Consent Solicitations. Newcrest Finance intends to enter into supplemental indentures with the trustee for the Existing Newcrest Notes to implement the Existing Newcrest Indentures Amendments on or prior to the settlement date of the Exchange Offers and the Consent Solicitations.

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
gold bars and stock chart

Top Stories This Week: Experts Talk Next Move for Gold, Uranium Catalysts Pile Up

The gold price has cooled since making a new all-time high on Monday (December 4), but it remained elevated ahead of the latest US non-farm payroll data and in advance of the US Federal Reserve's meeting next week.

For investors, the key question right now is whether the yellow metal will continue rising or make a retreat. Opinions vary, but I heard recently from two experts who aren't so sure that gold is set to break higher — at least in the near term.

Let's take a look at how David Morgan of the Morgan Report explained it:

Keep reading...Show less
kerry stevenson, open-pit mine

Kerry Stevenson: Gold, Uranium, Lithium — What I'm Doing with My Money

Kerry Stevenson, host of Making Money Matter, spoke with the Investing News Network about sentiment among Australian resource companies and investors, as well as what she's doing with her money right now.

She sees gold as a key portfolio component, especially during today's turmoil, and said she has exposure to physical gold and silver in addition to gold equities. "For me it's all about diversification. Because my view is that if you keep printing like drunken sailors, then hard assets are something that you really, strongly need to look at," she said.

However, Stevenson, who also runs the Australian Gold Conference, is following markets like uranium and lithium as they continue to gain traction on the back of the ongoing energy transition.

Keep reading...Show less
pile of gold bars over black background

Top 5 Gold Stocks on the TSX in 2023

Gold and gold companies have had a tumultuous year following insolvency in the banking system and tensions continuing between Russia and Ukraine and violence starting during Q4 in the Middle East.

Simultaneously, economic forces from central banks attempts to control 40-year high inflation levels saw interest rates pushing investors away from the yellow metal.

Despite opposing market elements, the price of gold remained elevated in 2023 and approached record prices in May and November before breaking them in December. The high prices have been a boon for gold mining companies, helping drive profits and fund projects and expansions.

Keep reading...Show less
don hansen, gold bars and stock charts

Investor Education: US Debt and Currency Collapse with Expert Don Hansen

Private investor Don Hansen has honed his resource sector investment approach for more than 20 years, and in a conversation with the Investing News Network he shared his research on the US debt-to-GDP ratio.

Looking back to 1945, the ratio was at 111 percent due to major spending on World War II. However, by 1965 it was down to just 43 percent — Hansen noted that this happened on the back of a balanced budget and good economic growth. The ratio remained fairly stable from 1965 to 1985, but rose dramatically from 1985 to 2005.

"The debt grew 9.3 percent between 1985 and 2005, but the GDP only grew 6.1," he noted. "So obviously then the debt-to-GDP ratio was climbing, and in 2005 it was up to 61. So you're going up 50 percent in 20 years." By 2025, Hansen expects the ratio to rise to 150 percent, with debt growing 9.5 percent annually and GDP only increasing by 3 percent.

Keep reading...Show less
 Karim Rayani, CEO of Falcon Gold

Falcon Gold Eyes Spring Drilling at Newfoundland Copper, Lithium and Gold Projects

Falcon Gold (TSXV:FG,FWB:3FA,OTCQB:FGLDF) is getting ready to ramp up exploration work at its gold, lithium and copper projects in Newfoundland, with permitting and subsequent drilling on the properties expected by spring 2024, according to CEO Karim Rayani.

“Once we get those permits in and we’re able to execute on our drill plan … we’ve been in a fairly slow period, but once drills start turning, I’m fairly optimistic we’ll be able to generate some high-grade material,” he said.

Falcon Gold’s Newfoundland landholdings are surrounded by significant deposits, which Rayani broke down in the interview. For example, its Golden Brook property hosts the Hope Brook zone, which is less than 10 kilometers from the new high-grade lithium discovery at Benton Resources (TSXV:BEX) and Sokoman Minerals' (TSXV:SIC,OTCQB:SICNF) Golden Hope project.

Keep reading...Show less

Latest Press Releases

Related News