GUM closes second tranche of $5.16 millionVANCOUVER, Nov. 29, 2011 /CNW/ - Gold Mountain Mining Corporation ("Gold Mountain" or the "Company") is pleased to announce that it has closed the second tranche (the "Second Tranche") of its flow-through private placement (the "Offering"). In connection with the Offering, Gold Mountain issued an aggregate of 4,494,311 common shares, intended to qualify as flow-through shares under the Income Tax Act ("Flow-Through Shares") at a price of $1.15 per Flow-Through Share for aggregate gross proceeds of $5,168,457, of which 771,739 Flow-Through Shares were issued in the Second Tranche. The Offering was completed pursuant to the terms of an agency agreement entered into by the Company and Industrial Alliance Securities Inc. as lead agent on behalf of a syndicate of agents including Canaccord Genuity Corp. and Sprott Private Wealth LP (collectively, the "Agents") as of the date hereof. In consideration for the services of the Agents in connection with the Second Tranche, the Company paid the Agents a cash commission equal to 5% of the gross proceeds raised in the Second Tranche, representing an aggregate cash payment of $44,375 and issued the Agents common share purchase options, exercisable to acquire up to 38,587 non-flow-through common shares of the Company (the "Agents' Shares") for a period of 12 months from the closing of the Second Tranche at an exercise price of $1.15 per Agents' Share. The proceeds of the Offering will be used to fund exploration activities on Gold Mountain's Elk property. All securities issued in the Second Tranche will be subject to a hold period under applicable securities laws which expires on March 30, 2012.
Elk Property
The Elk property is located in southern British Columbia, Canada, roughly 325 km northeast of Vancouver. The property is within the Similkameen Mining District and consists of 27 contiguous mineral claims and one mining lease covering approximately 16,700 hectares. Gold Mountain acquired the Elk Gold Project in July 2011 from Almaden Minerals Ltd.
About Gold Mountain Mining Corporation
Gold Mountain is a new public resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company owns 100% of the 16,700 hectare Elk Gold property, which the Company intends to develop into a precious metal producer within the next two years. Additional information is available on Sedar and a company web site will be available soon. https://www.aumtn.com/