VANCOUVER, Sept. 19, 2019 /CNW/ - Mineral Mountain Resources Ltd. and Mineral Mountain Resources (SD) Inc. ("Mineral Mountain" or the "Company") (TSXV: "MMV") is very pleased to announce that the Company has completed the purchase of the Standby Gold Mine Property consisting of 9 contiguous patented claims totaling 67.45 acres (the "Standby Property") from G & D Gold Mining Co., ("G&D Gold") a South Dakota corporation previously in a release dated September 12, 2016.
"The Standby Mine Property has been held in the DeLeo family for well over 100 years because they passionately believed that an economic gold orebody occurred within the limits of the Standby patents. I gave Jim and Gina DeLeo my promise that if we were successful in defining a gold resource for development we would name the deposit after their grandfather, George Beardshear, a mining engineer and the original owner of the Standby patents," said Nelson W. Baker, President and CEO of Mineral Mountain.
In 1879, the historic Standby Gold Mine, located on the Standby Property and about 16 miles south of the Homestake Gold Mine in Lead, South Dakota, was comprised of a series of several small pits, as well as underground exploratory drifts accessed on a number of levels by shafts and adits to a depth of 425-ft. The historic mine, which had a 40-stamp mill, used a flume to divert water and create power. This mine and mill contributed to much of the town of Rochford's growth in the late 1800's which at one time was estimated to have a population of about 1,000 people.
Historic workings were concentrated in the outcropping position of the head of the southward-plunging, structurally thickened and sheared Standby syncline, within a thickening unit of gold bearing iron formation. Indications from historic pit sampling and from underground sampling are that the syncline, and particularly the east limb of the syncline, host higher concentrations and have not been explored to depth along the plunge of the Standby syncline and its associated major shear structures. This target area, comprising at least 1.5 km of plunge extent, is the prime focus of Mineral Mountain's planned exploration on the Standby Mine (news release dated September 18, 2019).
Terms of the Option Purchase Agreement
Under the Option Agreement announced in a news release dated September 12, 2016, the Company was been granted a 3-year Option to acquire 100% of the Standby Property by paying G & D Gold Mining a total of US$500,000 which it has completed.
Mineral Mountain, by purchasing the Standby Property, grants G & D Gold Mining a 2% net smelter returns royalty on the Standby Property. The Company shall thereafter have the right to purchase up to one-half, or 1% of G & D Gold Mining's 2% net smelter returns royalty interest for US$1,500,000. Closing of this transaction is subject to receipt of any requisite TSX Venture Exchange approval.
The TSX Venture Exchange has approved a 30-day extension to close the final tranche of a non-brokered private placement announced in a news release dated August 30th, 2019. The non-brokered private placement (the "Private Placement") consists of up to 20,000,000 units of the Company ("Units") to be sold at a price of C$0.15 per Unit to raise gross proceeds of up to C$3,000,000. Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"), with each Warrant entitling the holder to purchase one common share of the Company (a "Warrant Share") for a period of one (1) year from closing at an exercise price of C$0.25 per Warrant Share. The Company has closed the first tranche of the Private Placement on September 5, 2019.
About Mineral Mountain Resources and the Rochford Gold Project
Mineral Mountain Resources Ltd., through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration and, if warranted, development of its 100%-owned Rochford Gold Project situated along the highly prospective Homestake Gold Belt in the Black Hills of South Dakota, U.S.A. The Rochford Project covers in excess of 7,500 acres and covers five major trends of structurally thickened auriferous iron formation comparable to the geological setting of the ledge-type gold mineralization developed at the Homestake Mine.
Magnetic 3D modelling of the Company's airborne survey in 2013, combined with surface geological mapping, and the compilation of historic drilling, highlights 3 high priority exploration targets trends, including the Standby Mine Target, coincident with structurally thickened, sheared, gold-bearing iron formation within the Mineral mountain land package.
Since 2013, the Company has continued to expand its land position in the Rochford gold district by professional claim staking and by purchasing strategically located private properties that fall along two of the major sub-parallel structural trends that host Ledge-type gold mineralization. The Company now owns the largest land position in the Rochford greenstone belt and now possesses by far the largest and most comprehensive database for the district in modern day exploration history, including the first time that all available data has been compiled and synthesized in modern GIS and 3D imaging software! The Rochford Project is vastly under-explored and has the potential to host several district scale gold discoveries.
On Behalf of the Board of Directors MINERAL MOUNTAIN RESOURCES LTD.
"Nelson W. Baker", President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward looking information
This release includes certain statements that may be deemed to be "forward-looking information" under Canadian securities laws. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, constitute forward looking- information. Forward looking information consists of statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information does not constitute guarantees of future performance and actual results may differ materially from those in forward- looking information. Factors that cause the actual results to differ materially from those in forward-looking information include gold prices, results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, continued availability of capital and financing and general economic, market or business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company's forward-looking information should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.
SOURCE Mineral Mountain Resources Ltd.
For further information: Brad Baker, Vice-President Corporate Development & Director, (778) 383-3975, [email protected]; Or visit our website: www.mineralmtn.com