Montan Mining Corporate Update
#1400 – 1111 West Georgia St. Vancouver, B.C. V6E 4M3
MONTAN MINING CORPORATE UPDATE
• ARRANGES EXTENSION TO AUGUST 30TH FOR CLOSING OF KAIROS S.A.C ACQUISITION
• MIRADOR PLANT FLOTATION CIRCUIT OPERATING AT 125 TPD STEADY STATE
• COMPANY HAS MUTUALLY TERMINATED THE FINANCING TERM SHEET WITH CARTESIAN
ROYALTY HOLDINGS AND IS ADVANCING OTHER NON-DILUTIVE FINANCING OPTIONS
Vancouver, BC, June 29, 2017 – Montan Mining Corp. ( TSXv: MNY | FSE: S5GM | SSE:
MNYC) (“Montan” or the “Company”) is pleased to announce that the Company has arranged an
extension of its Term Sheet with Pacific Alliance Capital Group Ltd. (“Pacific Alliance”) for the
purchase, by Montan, of the Peruvian companies Kairos Capital Peru S.A.C (“Kairos”) and M&S
Transportes y Servicios Generales S.R.L (“Mirador”) from Pacific Alliance (please refer to the
News Release of February 16th, 2017). The extension is granted until August 30 th, 2017 to
facilitate completion of the transaction closing requirements. The key assets (“Pacific Alliance
Assets”) held by the companies under acquisition include the 100% owned 125 tonnes per day
(“TPD”) Mirador Processing Plant located in Chimbote, Peru and six (6) 100% owned mineral
concessions.
The Company would like to confirm that the Kairos transaction, which will provide the Company
with existing (and growing) cash flow from the Mirador base and precious metals mill, is
proceeding on a revised schedule, timed to permit full compliance with TSX requirements and
Personal Information (“PIF”) filings.
Operational Update: The Mirador plant is fully operational at 125 TPD through its copper
processing line and presently has a two-month waiting list queued for processing through its
flotation circuit.
Forward planning for the operational start-up of the Company’s 100% owned Cerro Dorado plant
has also been ongoing. Detailed evaluation of the volume and quality of gold bearing mineral
bound for Chala and N azca out of the Atico Valley where the Cerro Dorado plant is located has
shown that more than 6,000 tons of quality feed passes by the plant location monthly. Negotiations
with potential suppliers confirm a strong business case for near-term start-up at Cerro Dorado.
Kairos SAC acquisition financing: The Company and Cartesian Royalty Holdings Pte. Ltd.
(“CRH”) have terminated the Binding Term Sheet for debt financing of the cash component of the
Kairos/Mirador acquisition (please refer to the News Release of April 25th, 2017). Management
acknowledges the professional work undertaken by CRH towards closing a definitive agreement
with the Company. The Company is rapidly advancing alternative financing options that are
attractive to both Montan and Pacific Alliance.
On behalf of the Board of Montan.
Ian Graham
CEO and Director
Tel: +1.604.671.1353
Email: [email protected]
About Montan Mining Corp.
Montan Mining Corp. is an emerging gold producer focusing on monetizing 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 for shareholders.
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
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 ACC URACY OF
THIS NEWS RELEASE.
Forward-Looking Statements: Certain statements in this press release are forward -looking statements within the
meaning of applicable securities laws. Forward-looking statements in this press release include that we will purchase
the Peruvian company Kairos Capital Peru S.A.C (“Kairos”) and M&S Transportes y Servicios Generales S.R.L
(“Mirador”) from Pacific Alliance, or that the company is assured of TSX Venture Exchange approval for its
acquisition; and the implication that cash flow at Mirador will continue to increase. Such forward-looking statements
and information are subject to risks, uncertainties and other factors which may cause our actual results, performance
or achievements, or industry results, to be materially diffe rent from any future results, performance or achievements
expressed or implied by such forward -looking statement. Specific risks included that we may not be able to secure
sufficient mineral feed stock of appropriate grades, we may not be able to attract o r retain key employees necessary
for our operations, we may not be able to finance operations, we may not be able to sustain recoveries that ensure
profitability, and we may not be able to locate or negotiate transactions which result in growth of our busi ness. We
may not be able to become profitable even if we are producing and milling to capacity, profitability depends on
revenues and expenses which are not completely controllable; we may not be able to secure mineral feed from other
miners; and we may not be able to restart production because of technical or expense issues. Readers are cautioned
to review the risk factors of junior mining companies which apply equally to our company, and to our management
discussion and analysis as filed on SEDAR. Other t han as required by law, we assume no obligation to update these
forward looking statements.