Mineral Mountain Secures Major Investor and Initial Funding of $6 Million USD to Drill Standby MINE GOLD Target
MINERAL MOUNTAIN SECURES MAJOR
INVESTOR AND INITIAL FUNDING OF $6
MILLION USD TO DRILL STANDBY MINE
GOLD TARGET
VANCOUVER, BC
,
Aug. 2, 2022
/CNW/ - Mineral Mountain Resources Ltd. ("
Mineral Mountain
" or
the "
Company
") (TSXV: MMV) (OTCQB: MNRLF) (FRANKFURT: M8M) is pleased to announce
that the Company has entered into an agreement with an international Private Investment Fund (the
"Fund") to raise
$6 Million USD
(
Cdn$7,740,000
at an exchange rate of 1.29) dedicated principally
to drilling the Company's 100%-owned, fully permitted Standby Mine gold system located in the
Rochford Gold District in the Black Hills of
South Dakota, USA
. In addition to the
$6 million USD
the
Company intends on raising a further
Cdn$200,000
for a total financing of
Cdn$7,940,000
(the
"Financing"). The Financing will consist of up to 113,428,571 units (the "Units") with each Unit
comprised of one common share and one common share purchase warrant exercisable at a price of
$0.15
for six months from the date of issuance (the "Warrants"). The Financing is expected to close
in two tranches: a) the first tranche of
Cdn$600,000
(the "First Trance") within a few weeks; and b)
a second tranche for the remaining
Cdn$7,340,000
(the "Second Tranche") upon the Company
obtaining shareholder approval for the Second Tranche at a special meeting of shareholders
expected to take place in late September or early October. Shareholder approval will be required
for the Second Tranche as a result of the Fund's investment becoming a control block as that term is
defined within TSX Venture Exchange policies.
The Financing is subject to the approval of the TSX Venture Exchange. The securities issued in
connection with the Financing will be subject to a four-month hold period, in accordance with
applicable securities laws.
The proceeds are to be used primarily to fund a 9,000-metre drill program at the Company's largest
and most advanced gold projects in the
Rochford
District of
South Dakota
. Preparations for this drill
program are currently underway.
Standby Mine Gold Target
All geologic, geophysical and drill results to date suggest a Homestake ledge-type target exists at
Standby and is potentially of large scale. Mineral Mountain's goal is to extend the Standby Mine gold
mineralization down-plunge through systematic step-out drilling along strike and down-plunge in the
Upper Tail to discover an
Ore Centroid
at depth.
Approximately 50,000-60,000 tons of ore were mined historically from the Standby Mine before
1950, mostly from oxidized ores in four large open cuts connected by underground workings to a
maximum depth of 130 meters. Historic outcrop surface sampling from the walls and rim of the open
cuts averaged
9.1 m
@ 10 g/t Au
with grab samples up to
38 g/t Au
. A shaft was sunk to the
130
m
(425- ft) level and underground channel sampling assayed
10.1 m
@ 6.0 g/t Au
. Historical drilling
at the Standby Mine consists of
16,360 m
(53,677 ft) across 45 core holes, all in the Upper Tail
mineralization. MMV's two previous core drilling campaigns between 2018 and 2020 was successful
in extending known gold mineralization from the bottom of the historic Standby Mine workings from
130 meters below surface to a total plunge length of 850 meters.
Mineral Mountain's proposed drilling program in the
Rochford
District will focus on the Standby Mine
Target and is fully permitted for drilling, subject to this proposed financing and COVID-19
restrictions. The 9,000-meter drilling program as currently constituted will be focused on three target
areas in general: 1) Several additional holes around MMV hole ST18-006, which cut
43.5 m
@ 1.21
g/t Au
including several higher-grade internal zones such as
2.5 m
@ 4.39 g/t Au and
1.50 m
@
5.24 g/t Au.
This hole was near historic drill hole BLG-UG-03 that cut
25.91 m
@ 3.19 g/t Au
.
These intercepts were 100-
150 m
below surface and represent the opportunity to outline a near-
surface high-grade ore shoot in the Upper Tail environment.
A series of proposed holes to intersect the same depth interval cut by historic Homestake Mining
Co. drilling in the SM-86 and SM-87 holes thought to be the upper parts of the Standby Ore
Centroid. These historic holes represent a significant step-out along strike and down-plunge from the
Standby Mine and the deepest historic exploration work performed at the Standby Target Trend
(1,000 and
1,800 m
down-plunge from surface respectively). These results were highly encouraging,
including
3.05 m
@ 10.23
g/t Au. These two holes potentially intersected the crucial Upper Tail-Ore
Centroid transition and need to be replicated by MMV and further tested with systematic step-out
drilling to confirm internally consistent high-grade gold is present.
Jeff Hrncir
, M.Sc., the Company's chief geologist commented "Confirming the existence of an Ore
Centroid at Standby would be a game-changing discovery for Mineral Mountain Resources and set
the stage for future resource delineation drilling"
Qualified Person
The technical information in this news release has been reviewed and approved by
Nelson W. Baker
,
P.Eng. in
Ontario
since 1984, a "Qualified Person" under National Instrument 43-101 guidelines and
President and CEO of Mineral Mountain Resources Ltd.
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 that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward looking information
This release contains "forward-looking information" within the meaning of applicable Canadian
securities legislation ("Forward-looking information"). Forward-looking information includes, but is not
limited to, statements that address activities, events or developments that the Company expects or
anticipates will or may occur in the future, including such things as future business strategy,
competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and
with respect to exploration results, the timing and success of exploration activities generally,
permitting time lines, government regulation of exploration and mining operations, environmental
risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any
pending litigation and timing and results of future resource estimates or future economic studies.
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 02-AUG-22