Project Interest from Lida Resources
TSX-V Approves Montan Mining Corp.’s Acquisition of Las Huaquillas
Project Interest from Lida Resources
Vancouver, BC, January 18
th
, 2019 – Montan Mining Corp. (TSX-V: MNY | FSE: S5GM | SSE:
MNYC) (“Montan Mining” or the “ Company”) is pleased to announce that the T MX Venture
Exchange (the “Exchange”) has provided a Conditional Approval of the Transaction to Acquire the
Las Huaquillas Project, as News Released on December 6 th, 2018. The Company and the Vendor
will now proceed to complete the outstanding terms of the Project Purchase Agreement and the
Conditional Requirements ( requested by the Exchange) for the closing of the Transaction, with a
view to closing the Transaction in the very near term. The binding Project Purchase Agreement with
Lida Resources Inc. (“Lida”, a British Columbia company) provides for Montan Mining to acquire
100% of Lida’s interest (and any associated rights) in the Core Las Huaquillas project, where Lida
owns 44.5% of the Core Las Huaquillas (“CLH”) project, through a wholly -owned Peruvian
subsidiary company, Minera LBJ SAC.
At closing, Montan Mining will acquire Minera LBJ SAC from Lida. Consideration for Montan
Mining’s purchase of Minera LBJ SAC will be the issue of 25,000,000 Montan Mining shares and
12,500,000 warrants ($0.08, 5 -year term) to shareholders of Lida. The remaining conditions for
Closing required by the Exchange are the receipt, by Montan and evidenced to the Exchang e, of
signed undertakings by individual Lida shareholders whereby each shareholder undertakes to the
Exchange and to the Company that he/she/it will not a ct in concert with any other shareholder of
the Company to control the Company, and will not agree in advance on any Company matters
requiring a shareholder vote with any shareholder who controls Company voting shares. A number
of these undertakings have already been received by the Company.
In addition to the acquisition of the Core Las Huaquillas project, Montan Mining has moved quickly
to capture the highest priority proximal areas of this highly prospective northern Peru mineralised
belt through a strategic concession acquisition program aimed a consolidating all high priority
prospects into the now contiguous Greater Las Huaquillas (“GLH”) project. This acquisition
program has already resulted in more than doubling the GLH project area to 7,400 Ha, with more
than half of this area (3,800Ha) under Montan Mining’s 100% control (refer Company News
Release of December 13 th, 2018). The GLH project provides Montan Mining with a substantial,
transformative and immediate position in a world -class mineral province within the world -class
Andean Copper Belt.
Greater Las Huaquillas (GLH) Project
Mineral Prospectivity
Montan Mining is in the process of compiling extensive historical datasets in relation to the GLH
project, including data relating to historical drilling and extensive resource appraisal studies.
In June 1998, the previous operator 1 of the Las Huaquillas project reported a historic geolog ical
resource for the Los Socavones Zone of 6.57 million tonnes grading 2.08 g/t Au and 25.2 g/t Ag
(at 1 g/t cut-off) for 443,000 ounces of gold and 5,300,000 ounces of silver, estimated over a 500m
strike length section of a 2.2km long gold- bearing structure. Historical resource appraisal
encountered shallow mineralisation in a number of drill holes. Drill hole LH97 -08 drilled by
Sulliden, intercepted 78 metres at 2.7g/t Au from surface, highlighting the potential for low -cost
open-pit mining operations.
Following a detailed review of the project , in March 2012, a subsequent publicly listed operator2
published a report indicating that the, “Los Socavones zone alone might be able to demonstrate the
potential for between 0.6 million and 4.0 million gold and gold equivalent silver ounces through
future drilling, based on its historic resource estimate and assumed dip and strike length extensions
within the current concession boundary.” The report went on to outline a data table with reference
to a base case of 1.4 million ounces of gold and 17.2 million ounces of silver.
Disclaimer: A qualified person has not done sufficient work to classify the historic estimates as
current mineral resources or mineral reserves; a nd Montan Mining is not treating the historic
estimates as current mineral resources or mineral reserves. Refer to the Disclaimer & Forward -
Looking Statements section of this News Release.
Whilst these resource studies are historical in nature (non -NI 43-101 compliant), they provide the
Company with confidence that the GLH represents a very large mineralised system, with numerous
opportunities to potentially delineate a significant mineral resource. In addition to the precious metal
endowment of the GLH , preliminary reviews of historical studies by past operators as well as the
Geological, Mining and Metallurgical Institute of Peru (INGEMMET 3) by Montan Mining, have
also identified significant base metal prospectivity. A n historical report by INGEMMET outlining
encouraging metallurgical recoveries for gold and silver from samples sourced from the Los
Socavones Zone, also highlights the potential to produce a zinc concentrate, from broad zones of
zinc mineralisation with reported grades as high as 2-3% Zn.
In addition to the Los Socavones epithermal gold zone and associated base metal prospectivity,
historic drilling outside the Los Socavones Zone also identified two potentially large porphyry
copper-gold zones, Cementerio and San Antonio. These targets are well defined by geophysics, and
are coincident with geochemical and geological features similar to known world -class porphyry
deposits (refer presentation online, at www.montanmining.ca ). Although historical exploration of
these targets has confirmed the presence of copper-gold mineralisation, these targets have not been
sufficiently appraised to have allowed the preparation of resource estimates by prior operators.
Comment from the CEO
“The team at Montan Mining is seeking to rapidly unlock value from GLH, a world-class appraisal
stage project that provides the Company with a transformative near-term growth platform. The
prospect of being both a near -term gold producer at Cerro Dorado, and of working with partners
to appraise a project the scale of Greater Las Huaquillas reflects the amazing opportunit ies we
have been able to assemble in a relatively short period of time, following our recent restructure. As
we relaunch the Company at the January 2019 Vancouver Resource Investment show (Booth # 839)
and our growth plans unfold, we are optimistic the market will recognise the substantial intrinsic
value embedded in Mont an Mining, hopefully resulting in our rerating more in line with the
valuations of our larger peers.
1 Annual Report (1997-98), Sulliden Exploration Inc, 23 June, 1998.
2 Strategic Review and Business Analysis , Inca One Resources Corp, 9 March 2012.
3 Pre-Evaluation of the Technoeconomic Potential of the Epithermal Gold Resource at Las Huaquillas, INGEMMET, 31 January 1999.
We wish all our supporters a prosperous new year and look forward to providing substantial near-
term news-flow as we head into what we expect to be a transformative year for our Company.” said
Ian Graham, CEO of Montan Mining.
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 commercial expertise and is supporte d 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 Contacts:
Luis F. Zapata
Executive Chairman
Tel: +1.604.358.1382
Tel: +51.999.968.827 (Peru) Email: [email protected]
Bahay Ozcakmak
Director
Tel: +61.3.9236.2800
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 O R ACCURACY
OFTHIS 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 term inology. 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 an update in the
stage which an acquisition has reached (“Conditional Approval”), some 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 from our proper and paid mineral concession applications, and that iii) we will be able to successfully appraise
the Greater Las Huaquillas 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 production 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 developm ent 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 fluc tuations and other risks involved in 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-looking statements or inform ation 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 Technical 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 exploration 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 relied entirely upon historic disclosure relating to the Las Huaquillas project in preparing this news release.