Transatlantic Mining Corp. enters into a Lease and Purchase agreement for the Kearsage Claim Group in Madison County, Montana
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Transatlantic Mining Corp. enters into a Lease and Purchase agreement for
the Kearsage Claim Group in Madison County, Montana
TCO NEWS RELEASE -VANCOUVER, B.C., May 4th, 2017 – Transatlantic Mining Corp. (the “Company”)
(TCO:TSX.V) announces that it has entered into an exclusive agreement to lease and purchase the Kearsage Claim
Group (“KCG”) in Madison County in the State of Montana , USA. These claims are approximately 4 miles from the US
Grant mine and mill complex currently leased by Transatlantic Mining Corp and add to the consolidation strategy of the
district that Transatlantic is undertaking with a “historical estimate’ stated as 6 00,000 ounces (no tonnes and grade
stated) of gold by previous operators. The Company is not treating the historical estimate as a current mineral resource
or reserve until further due diligence and technical work has been reviewed and undertaken during the due diligence
period.
Key components of the transaction:
Transatlantic has been granted an exclusive right to all data and information on the KCG for a period of eight
(8) months whereby full due diligence can be conducted for consideration of US$60,000.
A First Renewal Term of twelve (12) month s following the expiry of the due diligence period for consideration
of US$40,000
A Second Renewal term of ten (10) years following the expiry of the First Renewal Term for consideration of
US$8,333.33 per month until Transatlantic reaches commercial produ ction of a minimum of 30,000 ore tons
per month.
o Following achievement of commercial production of 30,000 ore tons per month the lease payments will
increase to the greater of:-
US$200,000 annually (payable monthly at US$16,666.67), or
A five (5) percent Net Smelter Royalty (“NSR”)
o Following achievement of commercial production of 100,000 or e tons per month the lease payments
will increase to the greater of:-
US$300,000 annually (Payable monthly at US$25,000), or
A ten (10) per cent NSR
Transatlantic has the option to purchase the Kearsage Claim Group at any time with the payment of
US$6,000,000 less any payments made in respects to the lease payments and the initial payment of
US$60,000, first and second renewal terms.
About the Kearsage Claim Group (KCG)
The KCG is located approximately 4 miles from the US Grant Mine and Mill Complex and provides an ideal opportunity
for Transatlantic to increase ownership within close proximity of existing infrastructure for future mine exploitation.
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There are 33 patented private land claims for a total of approximately 700 acres that contain mineralised veins.
The Kearsage Claim Group has had historical mining and the pre-2001 stated mineral inventory of 600,000 ounces (no
tonnes and grade stated) in the statement as a “ Historical Estimate “( Previous Operating Companies and JVs with
Kennecott and Hannover ,Annual Report 1995- ) . The statement of information was based on the following table below
:
Company and Year Type Of Activity Quantity
Kennecott 1992-1993 Diamond drilling 16 holes
Kennecott 1993 Reverse Circulation Drilling 19 holes
Hannover 1994/1995 Mine development/Cross cuts 3,000 feet
Hannover 1994/1995 Underground Diamond Holes 26 holes
Hannover 1994/1995 Mapping and sampling underground
Mineralisation appears to be open on strike and down dip with limited information seen to date. There is information that
supports the mineralisation, but to date no existing detailed technical compiled report has been observed to state the
classification prepared to this historical estimate. No new recent estimates have been observed other than the report as
stated above. Further work by the Company will be required including reviewing core and sample receipts and potentially
diamond drilling twin holes to confirm the historical intersections.
The Company is not treating the historical estimate as a current mineral resource or reserve and will develop the plan
to evaluate the information in the oncoming 8 months. Transatlantic is of the belie f that with further evaluation and
studies this could be added to Transatlantic’s extended future in the district.
CEO Bernie Sostak commented,
“ The KCG provides exploration upside in the district with limited historical deep and lateral strike extension drilling. We
will commence the due diligence program immediately.”
Chris Pfahl is the Qualified Person responsible for having reviewed and approved the technical information contained
in this news release. Chris is the Principal and Owner of Silver Valley Engineering
About Transatlantic Mining Corp.
Transatlantic Mining (TSX-V: TCO) is an emerging precious and base metal explore r. . The Company has a focus on
high-grade mining, in stable mining jurisdictions. The Company is engaged in controlling and owning mineral properties
interests, such as an 80% Joint Venture position on the Monitor Copper-Gold project in Idaho (USA).
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In January 2016, the Company entered a lease (option to purchase) agreement on 100% of the US Grant Gold-Silver
Mine & Mill complex in Montana (USA) . This has now extracted a concentrate within the last 12 months . A proven
management team, led by Chief Executive Officer Bernie Sostak seek to enhance shareholder value through expert
exploration/development and expansion of its existing a ssets, together with selective future earning accretive
acquisitions.
For further information please contact: Bernie Sostak +61 (0) 439 904 044
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 adequ acy or accuracy of
this release