Gold Mountain Mining Corp. (OTCQB: GMTNF) (TSX-V: GMTN) (Frankfurt:5XFA) is pleased to announce it has made the first $3,000,000 property payment to Equinox Gold Corp. (“Equinox”) with respect to the acquisition of the Elk Gold Project.
- The Company acquired the Elk Gold Project for $10,000,000 from Equinox for a $1,000,000 cash deposit and $9,000,000 interest free loan.
- The initial May 16th 2021 payment is a major milestone as it was perceived as one of the greatest risks surrounding the Elk Gold Project.
- Gold Mountain maintains a strong treasury to continue development and exploration of the mine.
- Remaining two $3,000,000 payments, due May 16th, 2022 and May 16th, 2023, are anticipated to be made with proceeds from commercial production.
“This property payment represents yet another major milestone to de-risk the Elk Gold project,” commented CEO Kevin Smith. “With our mining costs solidified, Ore Purchase Agreement in place, three MOU’s with surrounding indigenous communities and this property payment complete, the final piece is our mining permit amendment. Based on our ongoing discussion with the Mine Review Committee stakeholders and Provincial Regulators, permitting timelines are on schedule and expected to land in late June of this year. Once received, the Gold Mountain team will be in a position to not only continue expanding our resource through targeted drill programs, but also begin mining our high grade veins and transition into commercial production.”
The Elk Gold Project was originally acquired in May 2019 from Equinox when gold was at $1250/oz. The Company negotiated a favorable purchase price of $10,000,000, comprising a $1,000,000 cash deposit and an interest free $9,000,000 promissory note (the “Promissory Note”). The Promissory Note is repayable in three annual instalments of $3,000,000 with the first payment having been made on May 16th, 2021. The total amount due under the Promissory Note is fully discharged if the Company pays $8,500,000 prior to May 16, 2022.
About Gold Mountain Mining
Gold Mountain is a British Columbia based gold and silver exploration and development company focused on resource expansion at the Elk Gold Project, a past-producing mine located 57 KM from Merritt in South Central British Columbia.