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-Montan Miningincreases non-brokered private placement to $1 million.
-Montan Mining receives conditional approval of Cerro Dorado acquisition from the TSX-Venture Exchange.
-Montan Mining files NI 43-101 technical report on the Rey Salomon gold project.
Vancouver, BC /TheNewswire /November 30, 2016 – Montan Mining Corp. (TSXv: MNY | FSE: S5GM | SSE: MNYC) (“Montan” or the “Company”) is pleased to announce that further to its news releases dated October 19, 2016 and November 1, 2016 it has over-subscribed the non-brokered private placement announced on October 19, 2016 and is increasing it up to twenty (20) million units at a price of $0.05 per unit for total gross proceeds of up to $1,000,000. Each unit consists of one common share and one transferable share purchase warrant, with 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 (“TSX-V”).
The funds will be used for closing the Company’s acqusition of Cerro Dorado S.A.C. (“Cerro Dorado”) from Chazel Capital Inc. (“Chazel”). Please see Montan news release dated November 1, 2016 for details on the acquisition. Montan and Chazel have signed an Amendment to the Binding Letter of Intent to extend the deadline for executing the Definitive Agreement to December 31, 2016 and the deadline for completing the transation to Janaury 16, 2017.
Montan is also pleased to announce that the TSX-V has conditionally accepted the proposed transaction to acquire Cerro Dorado from Chazel. Montan is currently in the process of fulfilling all the conditions to obtain full approval of the transaction from the TSX-V.
“This increased financing will allow Montan to rapidly advance towards closing of the Cerro Dorado acquisition. The Company is on track to complete the transaction before the deadline and commence cash flowing operations in early 2017,” stated Ian Graham, Chief Executive Officer.
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.
The Company has filed a NI 43-101 technical report on Rey Salomon gold project dated November 10, 2016, available on SEDAR. The Rey Salomon project will become the Company’s principal focus.
On behalf of the Board of Montan.
Ian Graham
CEO and Director
Tel: +1.604.671.1353
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 Binding Letter of Intent with Chazel Capital Inc. (“Chazel”) for the purchase of its 100% owned Peruvian subsidiary Cerro Dorado S.A.C. (“Cerro Dorado”) from Chazel (please refer to News Release dated November 1, 2016).
For more information, please visit the corporate website at https://www.montanmining.ca or contact:
Investor Contact:
Luis F. Zapata
Executive Chairman
Email: lzapata@montanmining.ca
Tel: +1-604-358-1382