(via Thenewswire.ca)
Vancouver, BC, October 19, 2016 / TheNewswire / Montan Mining Corp. (TSXv: MNY | FSE: S5GM | SSE: MNYC) ("Montan" or the "Company") is pleased to announce that it has arranged a private placement financing of up to 12,000,000 units at a price of $0.05 per unit for total gross proceeds of up to $600,000. Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable into one additional common share at $0.10 per share for five (5) years after the closing date. The financing is subject to acceptance by the TSX Venture Exchange. The funds will be used for continuing due diligence on the Cerro Dorado S.A.C. ("Cerro Dorado") acquisition from Chazel Capital Inc. (please see Montan news releases dated July 14, 2016 and August 23, 2016) and finalizing the transaction.
"Due diligence is proceeding well," stated Ian Graham, Montan's CEO. "A Qualified Person geologist has conducted a site visit to the property and verification samples have been collected for geochemical analysis. Also, mineral sources in addition to Rey Salomon to feed the plant from the immediate surrounding area have been identified and we are presently engaged in contract talks to characterise and secure these supply options. This private placement will allow Montan to finish the due diligence process and complete the acquisition of Cerro Dorado."
Cerro Dorado holds an option and permits to operate the Rey Salomon gold mine with 2km of underground development, 32 identified veins, and a 60 tonnes per day carbon-in-pulp processing plant permitted for up to 100 tonnes per day. The entire mineral property under option by Cerro Dorado is comprised of 4 concessions totalling 1,172 hectares located in the department of Arequipa, province of Caraveli, Peru.
On behalf of the Board of Montan.
Ian Graham
Email: igraham@montanmining.ca
About Montan Mining Corp.
Montan is backed by an experienced management team with diverse technical, market, and finance expertise and is supported by committed and sophisticated investors focused on building value for the long term. The Company is engaged in the acquisition of an operational gold mine and operation ready CIP gold processing plant in the southern Peruvian mining district of Caraveli under a a Term Sheet with Chazel Capital Inc. ("Chazel") for the purchase of the Peruvian Company Cerro Dorado S.A.C. ("CD") from Chazel. Montan will acquire 100% of CD in an all-share deal with Chazel, (refer to News Release dated July 14, 2016) under improved underlying option conditions (refer to News Release dated August 23, 2016). Montan assumed operating expenses and commenced due diligence on July 25, 2016 (refer to News Release dated July 26, 2016).
For more information, please visit the corporate website at http://www.montanmining.ca or contact:
Investor Contact:
Luis F. Zapata
Executive Chairman
Tel: +1.604.358.1382
Email: lzapata@montanmining.ca
NEITHER THE 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.
Forward-Looking Statements: Certain statements in this press release are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements in this press release include reference to releases of July 14th and August 23rd announcing that Montan will acquire the Peruvian Cerro Dorado S.A.C. and its Rey Salomon mine from Chazel Capital; these releases state that we can rapidly finance to free cash flow and become a producing miner before year-end; and the implied outlook that this transaction can be a springboard for growth and create shareholder value. Such forward-looking statements and information are subject to risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement. Specific risks included that we may not be able to complete the above announced financing, or to finance our intended acquisition and that we may not obtain regulatory approval.
The Cerro Dorado assets have not been the subject of a feasibility study and as such there is no certainty that the mine or the mill will be able to produce a commercially marketable product. There is a significant risk that any production efforts from the project will not be profitable with these risks elevated by the absence of a defined NI 43-101 compliant resource and economic study. The Company's reliance on historic production and third party gold recovery statistics is necessary under the circumstances, but is not compliant with NI 43-101 reporting standards. There are increased risks and uncertainty in making a production decision without such a study and a historically higher rate of failure for production decisions not based on a feasibility study. The announcement of a site visit by a Qualified Person (geologist) and the collection of verification samples for geochemical analysis does not, and is not intended to, imply the the Company will define or report a defined NI 43-101 compliant resource and economic study: the NI43-101 report that will be prepared will be of a geologic potential nature, and will confirm the historic records and installed plant hardware at the site. The Company verification sampling will try to mitigate the potential resource risks should mining be undertaken: however, these data will not lead to a compliant resource and economic study. General risks inherent in the Project include the reliance on available data and assumptions and judgments used in the interpretation of such data, the speculative and uncertain nature of exploration and development, exploration and development costs, capital requirements and the ability to obtain financing, volatility of global and local economic climates, share price volatility, estimate price volatility, changes in equity markets, increases in costs, exchange rate fluctuations and other risks involved in the mineral exploration and development industry. There can be no assurance that a forward-looking statement or information referenced herein will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Also, many of the factors are beyond our control. Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake no obligation to reissue or update any forward-looking statements or information except as required by law.
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