Mineral Mountain Completes the Purchase of the Standby Mine MMV-TSX-V MNRLF-OTCQB
Mineral Mountain Completes the Purchase of
the Standby Mine
MMV-TSX-V
MNRLF-OTCQB
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.
Royalties
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 30
th
, 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.
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For further information:
Brad Baker, Vice-President Corporate Development & Director, (778)
383-3975, [email protected]; Or visit our website: www.mineralmtn.com
CO: Mineral Mountain Resources Ltd.
CNW 08:00e 19-SEP-19