Montan Expands Greater Las Huaquillas Project, Insider Purchases Shares IN Market
MONTAN EXPANDS GREATER LAS HUAQUILLAS PROJECT, INSIDER PURCHASES SHARES IN
MARKET
Vancouver, BC, December 13th, 2018 – Montan Mining Corp. (TSX -V: MNY | FSE: S5GM |
SSE: MNYC) (“Montan” or the “Company”) is pleased to announce that it has filed claim for
further 100% owned mineral concessions contiguous to its recently announced Greater Las
Huaquillas (“GLH”) Project (refer Company News Release of December 6 th, 2018;
http://www.montanmining.ca/_resources/news/nr-2018-12-06.pdf ).
At the time the GLH transaction was announced, the project comprised of 14 concessions: 5 held
100% and 9 held 44.5%. Foll owing the new concession filings, the GLH now comprises of 18
concessions arranged as follows:
• 9 concessions for approximately 3,800 Ha additional mineral title on a 100% basis, and
• 9 concessions for approximately 3,600 Ha on a 44.5% basis (Core Las Huaquillas).
Preliminary reviews of the prospectivity of the GLH project by Montain Mining confirm the
mineral prospectivity of the project is likely to extend beyond the Core Las Huaquillas project
area. Montan Mining notes that historical studies have also highlighted extensive prospectivity of
the project area, including the identification of additional zones anoma lous in gold and copper.
The most recent public company to be involved in assessing the prospectivity of the Las Huaquillas
project, at the time presented that they had a “target to grow to 4 million ounces of gold” at the
property. This assessment was deemed to be “ conceptual but believed to be realistic based on an
epithermal model; given the size of the mineralizing systems and structures (ground preparation),
the demonstrated large -scale hydrothermal system(s) and the confirmed enrichment of
mineralization (as demonstrated by Los Socavones and the San Antonio and Cementario porphyry
zones).” In order to ensure Montan Mining has captured the highest p riority project areas of this
highly prospective region, the Company has rapidly embarked on a strategic concession
acquisition program, which has already more than doubled the project area, with more than half
this area under Montan Mining’s 100% control.
Transaction Update
The Core Las Huaquillas project is to be acquired per a binding Sale Purchase Agreement (the
“SPA”) with Lida Resources Inc. wherein Montan will acquire 100% of Lida’s interest in the Core
Las Huaquillas project (in which Lida owns 44.5% of the Core Las Huaquillas Project ), for
consideration of 25,000,000 Montan Mining shares and 12,500,000 warrants ($0.08, 5 year term)
to be issued to the shareholders of Lida. The transaction is subject to customary conditions that are
typical of transactions of this nature, including Montan Mining shareholder and TSX Venture
Exchange approval. Montan Mining’s largest shareholder and strategic partner, Lions Bay Capital
Inc. (TSX -V: LBI) acted as a corporate advisor in relation to the transaction outlined in this
announcement, including in the origination, evaluation, structuring and financing of the Greater
Las Huaquillas project. In considerat ion of Lions Bay Capital’s role, Montan Mining will seek
approval (where necessary) to issue Lions Bay Capital (or its permitted assignee/s) 1,500,000
Montan shares and 750,000 warrants ($0.08, 5 year term) as a corporat e advisory fee. The
transaction is also subject to a finder’s fee, payable by Montan to an unrelated party, of 1,250,000
Montan shares and 625,000 warrants ($0.08, 5 year term).
Map figure: location of the mineral concession applications filed by Montan adjacent to the
Core Las Huaquillas concessions.
Comment from the CEO
“We are pleased to be further consolidating the Greater Las Huaquillas project land position in
anticipation of expanding our knowledge of this highly prospective project. We expect the
previously reported mineralisation at GLH is not confined to the core resource area, and is instead
part of a much larger highly prospective system. The expanded project footprint provides Montan
with substantial running room to grow our inventory of high grade appraisal targets. The GLH
project is the first fruit of a new ventures initiative that has been acive for some time . We look
forward to updating the market on additional acquisitions when appropriate. Coupled with our
Cerro Dorado gold mill and the adjacent Rey Salomon mine , Montan is well positioned to lead
the acquisition and development of substantial regional resources that otherwise remain
challenged or economically stranded” said Ian Graham, CEO of Montan.
Insider Purchase
The Board also wishes to disclose that Mr. Bahay Ozcakmak, a director of the Company and the
representative for Lions Bay Capital within Montan, has actively acquired shares of Montan in the
open market subsequent to the December 6 th news release . The market will be informed of
additional purchases in a timely manner.
About Montan Mining Corp.
Montan Mining Corp. is an emerging gold producer focusing on unlocking value from advanced
stage mining assets in Peru. The company 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 long term value, now anchored by Lions Bay Capital Inc.
On behalf of the Board of Montan.
Ian Graham
CEO and Director
Tel: +1.604.671.1353
Email: [email protected]
For more information, please visit the corporate website at http://www.montanmining.ca or
contact:
Investor Contact:
Luis F. Zapata
Executive Chairman
Tel: +1.604.358.1382
Tel: +51.999.968.827 (Peru)
Email: [email protected]
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 NEWS RELEASE.
Disclaimer & Forward Looking Statements : This news release contains forward-looking statements.
Forward-looking statements are statements that relate to future events or future financial performance. In some cases,
you can identify forward-looking statements by the use of terminology such as “may”, “should”, “intend”, “expect”,
“plan”, “anticipate”, “believe”, “estimate”, “project”, “predict”, “potential”, or “continue” or the negative of
these terms or other comparable terminology. These statements speak only as of the date of this news release. This
news release may also contain inferences to future oriented financial information (“FOFI”) within the meaning of
applicable securities laws. The information in this news release has been prepared by our management to provide a
context for the project acquisition and to provide the reader with an outlook for our future activities and anticipated
key projects and may not be appropriate for other purposes. Forward-looking statements or inferences in this
announcement include, (but are not limited to), i) that we will successfully start-up Montan Mining’s Cerro Dorado
plant, and that ii) we will be granted mineral concessions resulting for our proper and paid mineral concession
applications, and that iii) we will be able to successfully appraise the Greater Las Huaqu illas project. The Cerro
Dorado S.A.C. assets have not been the subject of a feasibility study and as such there is no certainty that the mine or
the mill will be able to produce a commercially marketable product. There is a significant risk that any produ ction
efforts from the project will not be profitable with these risks elevated by the absence of a defined resource and
economic study. The Company’s reliance on historic production and third party gold recovery statistics is necessary
under the circumstances, but is not compliant with NI 43 -101 reporting standards. There are increased risks and
uncertainty in making a production decision without such a study and an historically higher rate of failure for
production decisions not based on a feasibility study. General risks include the reliance on available data and
assumptions and judgments used in the interpretation of such data, the speculative and uncertain nature of exploration
and development, exploration and development costs, capital requirements and the ability to obtain financing,
volatility of global and local economic climates, share price volatility, estimate price and commodity price, volatility,
changes in equity markets, increases in costs, exchange rate fluctuations and other risks involved i n the mineral
exploration and development industry. There can be no assurance that a forward-looking statement or information
referenced herein will prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements or information. Also, many factors, though considered, are beyond our control.
Accordingly, readers should not place undue reliance on forward-looking statements or information. We undertake
no obligation to reissue or update any forward-l ooking statements or information except as required by law.This
announcement is not, and under no circumstances is to be construed as, a solicitation or an offer of any kind. The
matters set forth in this announcement does not constitute an agreement or offer that may be accepted. Accordingly,
no person may bring a claim or action against another for a failure to negotiate, agree or enter into any agreement
with respect to matters contained in the announcement.The technical information in this announcement relating to the
Greater Las Huaquillas project has been derived from: NI 43-101 Technical Report (the “Technical Report” ) on the
Las Huaquillas Au, Ag, Cu Property, Cajamarca, Peru (15 August 2011) prepared by Luc Pigeon, P.Geo., of Gateway
Solutions SAC, a Qualified Person under NI 43-101. Montan Mining has not sought any form of consent from either
the Qualified Person, or the Issuer which commissioned the Techn ical Report, but rather references this Technical
Report in an historical context as the report was originally submitted for exchange approval on 15 August 2011. It
should be noted that there has not been sufficient drilling and/or sufficient previous expl oration at Las Huaquillas
upon which to base a mineral resource or mineral reserve estimate compliant with the current standards of National
Instrument 43-101, and Montan Mining has not undertaken any independent verification of the data contained in that
report by a Qualified Peron or Persons acting for Montan Mining. There has been no additional or independent
verification site visits, sampling or analytical work undertaken by Montan Mining with respect to the Las Huaquillas
property. Montan Mining has re lied entirely upon historic disclosure relating to the Las Huaquillas project in
preparing this news release.