Thunder Mountain Gold Inc. Reports 2019 Annual Results
Thunder Mountain Gold Inc. Reports 2019 Annual Results
BOISE, Idaho, April 29, 2020 -- Thunder Mountain Gold, Inc. (OTCQB: THMG; TSX-V: THM), (the “Company” or “THMG”) is
pleased to report 2019 annual results for the Company and its operational outlook for 2020.
2019 Annual Highlights:
• On February 28, 2019, Thunder Mountain Gold Inc. entered into an option agreement with BeMetals Corp. (“BMET”), a
new base metals exploration and development company based in Vancouver, British Columbia, Canada. The terms of
the Option Agreement can be found at the Company`s website, or on SEDAR or EDGAR. The terms require among
other things that BeMetals Corp. make certain cash payments and stock issuances to the Company, along with
completing an NI 43-101 Preliminary Economic Analysis.
• Revenues for Fiscal 2019 were $1,954,398, versus $0 for 2018. The increase is the result of consideration received
under the BMET agreement including management fees.
• Operating expense for the year was $695,295 – a 14.4% increase year over year and is primarily due to an increase in
management and administrative expense associated with the stock option compensation and expenses associated
with the BMET agreement.
• Net Income for fiscal 2019 was $1,082,083, or $0.02 per share versus a loss of $637,687, or $.01 per share in during
the prior year.
• Total Liabilities and stockholder`s equity increased 174% to $2,329,938 from $851,166 on December 31, 2018.
• On January 20, 2020, the Company released results of the 2019 Phase I drilling program. These results exceeded
BeMetals Corp.’s expectations. BMET believes South Mountain is a carbonate replacement deposit (“CRD”) system,
with potentially more upside to the ultimate scale of the deposit than was previously anticipated. BeMetals also stated,
the recent results confirm and complete what has been a very successful phase 1 drilling program at the South
Mountain Project. This initial underground campaign of drilling has delivered on the objective of demonstrating the
potential to considerably expand the high-grade base and precious metal mineralization. Overall, BMET was pleased to
see the increased gold and silver components in specifically the DMEA zone mineralization.
• The 2019 Phase 1 drilling program was completed according to schedule and on budget. Over 7,400 feet (2,250 meters)
of underground core drilling was completed, along with underground drift and infrastructure rehabilitation and upgrades.
Sample analysis was completed by ALS Global.
• The Phase 2 drilling is expected to commence in the second quarter of 2020 subject to fundraising and potential
impact of the COVID-19 pandemic. Initial plans are to extend and continue to rehabilitate the Sonneman level drift and
conduct approximately 8,000 feet (2,400 meters) of underground core drilling. This work will pave the way for completion
of a Preliminary Economic Analysis on the Project. A budget of approximately US $2M is being considered.
2019 Results of Operations:
In 2019, the Company received $350,000 in cash and shares of BeMetals common stock with a fair value of $1,883,875 on the
date of receipt. A gain on mineral interest of $1,754,398 was recognized for the excess of consideration received over the
carrying value amount of the Company’s investment in the South Mountain project of $479,477. In addition, the Company
earned $200,000 in management services income during the year ended December 31, 2019 in accordance with the BeMetals
agreement.
Total operating expenses for the year ended December 31, 2019 of $695,295 increased from 2018’s comparable period by
$87,502 or 14%. Exploration expenses for the twelve months ended December 31, 2019 decreased by $179,041 when
compared to same period in 2018. This decrease can be attributed to the engagement of Hard Rock Consulting LLC to update
the NI 43-101 during 2018. In addition, starting in June 2019, BeMetals has reimbursed the Company for exploration and other
costs. Legal and accounting costs increased from the same period in 2018 by $17,213 for a total of $135,015. Management
and administrative expense increased by $265,445 or 113% principally due to stock options compensation of $117,088 issued
to our officers and directors in March 2019, and due to additional expenses incurred with the BeMetals agreement in 2019.
“2019 was a transformational year for Thunder Mountain Gold Inc.”, commented Eric T. Jones, President and CEO of Thunder
Mountain Gold. “It was the first time in nearly 40 years that we have recorded net income, while experiencing a positive
advancement of our South Mountain property with our partner – BeMetals Corporation. We look forward to further advancing
the property during the 2020 exploration season.”
2020 Guidance and Outlook
The Company currently expects similar financial results in 2020, with the continuation of BeMetals Phased advancement of
the South Mountain Project. However, the Company may revise guidance during the year to reflect changes to expected
results, including changes caused by effects related to the COVID-19 pandemic.
Other Corporate Business
On March 27, 2020, the Company`s Board approved the issuance of a total of 1,630,000 stock options granted to the Board
and Management of the Company. These stock options are exercisable at $0.099 per share for a period of five years and are
immediately vested. These options were granted in accordance with the Company`s Stock Option Incentive Plan previously
approved by Shareholders.
Regarding Thunder Mountain Gold, Inc. (TSX.V: THM)
Thunder Mountain Gold Inc., a publicly traded junior exploration company founded in 1935, owns interests in base and
precious metals projects in the western U.S. The Company’s principal asset is The South Mountain Mine, an historic former
producer of zinc, silver, gold, lead, and copper, located on private land in Owyhee County Idaho. In 2019, the Company entered
into an option agreement with BeMetals Corp. ( www.Bemetalscorp.com) based in Vancouver, British Columbia, Canada, and
Thunder Mountain Gold is currently one of the largest shareholders of BeMetals Corp. Thunder Mountain Gold also owns 100%
of the Trout Creek Project – a gold exploration project located along the western flank of the Shoshone Mountain Range in the
Reese River Valley, adjacent to and surrounded by Nevada Gold Mines, a Nevada-specific joint operating agreement between
Barrick and Newmont Goldcorp. For more information on Thunder Mountain Gold, please visit the Company’s website at
www.Thundermountaingold.com. Thunder Mountain Gold trades on the TSX-V under ticker THM; and the OTCQB under ticker
THMG.
About BeMetals Corp.
BeMetals' founding Directors include John Wilton (President and CEO), Clive Johnson, Roger Richer, and Tom Garagan.
BeMetals is a new base metals exploration and development company focused on becoming a significant base metal producer
through the acquisition of quality exploration, development and potentially production stage projects. The Company is
advancing both its early-stage, tier-one targeted, Pangeni Copper Exploration Project in Zambia, and its advanced high-grade,
zinc-silver polymetallic underground exploration at the South Mountain Project in Idaho, USA. The Company’s growth strategy
is led by our strong Board, key members of which have an extensive proven record of delivering considerable value in the
mining sector through the discovery, construction and operation of mines around the world. The Board, its Advisors, and senior
management also provide outstanding deal flow of project opportunities to BeMetals based upon their extensive network of
contacts in the international minerals business.
Forward-Looking Statements
This press release contains forward-looking statements that are based on the beliefs of management and reflect the
Company's current expectations. The forward-looking statements in this press release include statements with respect to the
completion of the transactions contemplated with BeMetals Corp., a Canadian Corporation. Generally, forward-looking
statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements
that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative
connotation thereof. The forward-looking statements are based on certain assumptions, which could change materially in the
future, including the assumption that the transactions contemplated with BeMetals Corp. will be completed. By their nature,
forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or
implied by the forward-looking information. Such factors include the determination and ability of BeMetals to complete all
required option payments and issuance of shares under the BeMetals Option Agreement, the receipt of all required regulatory
approvals and the satisfaction of all required terms and conditions. Investors should refer to THMG’s Form 10-K, Form 10-Q
reports, and Definitive 14C Information Statement as filed May 20, 2019, for a more detailed discussion of risks that may
impact future results. There can be no assurance that forward-looking information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place
undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and
the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required in
accordance with applicable laws.
Cautionary Note to Investors
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
Thunder Mountain Gold, Inc.
Consolidated Balance Sheets (Unaudited)
December 31,
2019 2018
ASSETS
Current assets:
Cash and cash equivalents $ 252,415 $ 3,710
Prepaid expenses and other assets 18,824 29,425
Total current assets 271,239 33,135
Property and Equipment:
Land 280,333 280,333
Equipment, net of accumulated depreciation of $156,694 and $124,384,
respectively 25,911 58,221
Total property and equipment 306,244 338,554
Right to use asset 16,625 -
Investment in BeMetals, at fair value 1,735,830 -
Mineral interests - 479,477
Total assets $ 2,329,938 $ 851,166
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and other accrued liabilities $ 96,973 $ 138,092
Accrued related party liability 216,685 241,685
Accrued interest payable to related parties 73,343 52,787
Operating lease liability – current 15,265 -
Advance from BeMetals 78,539 -
Deferred compensation 1,041,500 1,041,500
Related parties notes payable 106,576 126,576
Total current liabilities 1,628,881 1,600,640
Operating lease liability – long-term 1,360 -
Accrued reclamation costs 65,000 65,000
Total liabilities 1,695,241 1,665,640
Commitments and Contingencies
Stockholders' equity (deficit):
Preferred stock; $0.0001 par value, 5,000,000 shares authorized;
no shares issued or outstanding - -
Common stock; $0.001 par value; 200,000,000 shares
authorized, 60,145,579 and 57,645,579, respectively shares issued
and outstanding 60,146 57,646
Additional paid-in capital 6,176,576 5,811,988
Less: 11,700 shares of treasury stock, at cost (24,200) (24,200)
Accumulated deficit (5,751,527) (6,833,610)
Total Thunder Mountain Gold, Inc. stockholders' equity (deficit) 460,995 (988,176)
Noncontrolling interest in Owyhee Gold Trust 173,702 173,702
Total stockholders' equity (deficit) 634,697 (814,474)
Total liabilities and stockholders' equity (deficit) $ 2,329,938 $ 851,166
Thunder Mountain Gold, Inc.
Consolidated Statements of Operations (Unaudited)
Years Ended December 31,
2019 2018
Revenues:
Gain on mineral interest $ 1,754,398 $ -
Management service income 200,000 -
Total revenues 1,954,398 -
Operating expenses:
Exploration 26,773 205,814
Legal and accounting 135,015 117,802
Management and administrative 501,197 235,752
Depreciation 32,310 48,425
Total operating expenses 695,295 607,793
Net operating income (loss) 1,259,103 (607,793)
Other income (expense):
Interest expense, related parties (21,290) (28,739)
Unrealized loss on investment (148,045) -
Other (2,685) 3,845
Total other income (expense) (172,020) (24,894)
Net income (loss) 1,087,083 (632,687)
Net income – noncontrolling interest in Owyhee Gold Trust 5,000 5,000
Net income (loss) – Thunder Mountain Gold, Inc. $ 1,082,083 $ (637,687)
Net income (loss) per common share-basic and diluted $ 0.02 $ (0.01)
Weighted average common shares outstanding-basic 59,042,839 57,208,045
Weighted average common shares outstanding-diluted 59,329,735 57,208,045
Thunder Mountain Gold, Inc.
Consolidated Statements of Cash Flows (Unaudited)
Years Ended December 31,
2019 2018
Cash flows from operating activities:
Net income (loss) $ 1,087,083 $ (632,687)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation 32,310 48,425
Stock based compensation 117,088 -
Amortization of related party notes payable discount - 8,889
Gain on mineral interest (1,754,398) -
Unrealized loss on investment 148,045 -
Change in:
Prepaid expenses and other assets 10,601 (952)
Accounts payable and other accrued liabilities (31,119) 45,781
Accrued related party liability (25,000) 60,372
Accrued interest payable to related parties 20,556 19,849
Advance from BeMetals 78,539
Deferred compensation - 170,000
Net cash used by operating activities (316,295) (280,323)
Cash flows from investing activities:
Proceeds from mineral interest 350,000 -
Net cash provided by investing activities 350,000 -
Cash flows from financing activities:
Proceeds from sale of common stock and warrants 250,000 252,988
Borrowings on related parties notes payable 40,000 -
Payments on related parties notes payable (70,000) -
Distribution to noncontrolling interest (5,000) (5,409)
Net cash provided by financing activities 215,000 247,579
Net increase (decrease) in cash and cash equivalents 248,705 (32,744)
Cash and cash equivalents, beginning of year 3,710 36,454
Cash and cash equivalents, end of year $ 252,415 $ 3,710
Supplemental disclosure of cash flows information:
Interest paid in cash $ 736 $ -
Noncash financing and investing activities:
Common stock and warrants issued for payment of related parties notes payable and
accrued interest $ - $ 104,012
Investment in BeMetals received for mineral interest 1,883,875 -
Accounts payable settled with related party notes payable 10,000 -
Operating lease liability arising from obtaining right to use asset 29,617 -
(For detailed information, please refer to the Company’s 10-K Management’s Discussion and Analysis (MD&A) and Financial
Statements with accompanying notes that are available on the Company’s website at www.thundermountaingold.com and on
SEDAR at www.sedar.com. The Company uses certain non-GAAP financial performance measures throughout this press
release. Please refer to the “Non-GAAP Financial Performance Measures” section of this press release and the MD&A.)
For further information, please contact:
Thunder Mountain Gold, Inc.
Eric T. Jones Jim Collord
President and Chief Executive Officer Vice President and Chief Operating Officer
[email protected] [email protected]
Office: (208) 658-1037 Office: (208) 658-1037