Thunder Mountain Gold Enters Into An $18 Million Letter Of Intent For Joint Venture At Their South Mountain Mine
Apr 18, 2012, 09:46 ET
BOISE, Idaho, April 18, 2012 /PRNewswire/ -- Thunder Mountain Gold, Inc. (the Company) (TSX-V: THM; OTCQB: THMG), is pleased to announce that it entered into a Letter of Intent (LOI) with a Boise, Idaho based private equity group to advance the Company`s South Mountain Mine toward production. The private equity group can earn up to 75% participating interest in the project with an investment of eighteen million dollars.
Terms of the LOI agreement include a buy in payment of one million dollars, paid to the Company upon execution of the agreement, a work commitment of two million dollars the first two years, and fifteen million dollars committed to be spent into the project in the following two years under a plan to move the project through feasibility and into production.
"This agreement is an example of the Company's focus to enter into creative deals that lower the Company`s risk, while maintaining the upside exposure to gold, silver and other metal production, with no dilution to Thunder Mountain Gold shareholders", commented Eric Jones, President and CEO of Thunder Mountain Gold. As noted, all expenditures related to the development of the projected underground mine are being paid by Thunder Mountain's joint venture partner, with a total expected development budget of USD $18 million.
The project will be managed by a joint management committee assembled by both companies. Work is due to start on the project at the end of May, 2012, with plans for additional drilling, and re-modeling the 9 mineralized zones to aid in the development of this valuable resource. It is envisioned that the project will be a 500 to 1,000 ton per day operation when in production.
Qualified Person – G. Peter Parsley, Professional Geologist, is the Qualified Person as defined by National Instrument 43-101 responsible for the technical data reported in this news release.
About South Mountain
The South Mountain project is located in southwest Owyhee County, Idaho approximately 70 air miles southwest of Boise, Idaho, and is 24 miles southeast of Jordan Valley, Oregon. The 100% owned South Mountain Mine was purchased by Thunder Mountain Gold in 2007. This flagship property was first mined in the late 1800s, and intermittently through the 1950s, with production from numerous pipe and lenticular mineralized zones with reported grades of 15% Zinc (50% in certain zones), 2.0% Copper, 0.10 opt Au, 10 opt Ag, and 2.0% Pb. A new gold target was revealed during fieldwork at South Mountain in 2009, and additional exploration was conducted on the new target to further identify the gold potential of this gold bearing intrusive breccia.
The Company's land package at South Mountain consists of approximately 1,200 acres of mostly private land – both patented and leased. In 2010, the Company completed a NI 43-101 Technical Report that incorporated all the new drill and sampling data. This report was required as part of the Company's listing on the TSX Venture Exchange in 2010. The NI 43-101 can be reviewed on the Company`s website at www.thundermountaingold.com, or on www.SEDAR.com.
About Thunder Mountain Gold, Inc.
Thunder Mountain Gold, a junior gold exploration company founded in 1935, holds a 100% interest in several U.S. gold projects. The Company's principal assets are The South Mountain Project – a historic former producer of gold, silver, zinc, lead, and copper, located in southern Idaho, just north of the Nevada border, and their Trout Creek Project – a grass roots gold target in the Eureka-Battle Mountain trend of central Nevada, currently under Joint Exploration Agreement with Newmont Gold. For more information on Thunder Mountain, please visit the Company's website at www.Thundermountaingold.com.
U.S. Securities Act of 1933
This press release does not constitute an offer of any securities for sale or a solicitation of an offer to purchase any securities. The securities to be issued in connection with the Acquisition have not been and will not be registered under the United States Securities Act of 1933 (the "1933 Act") and may not be offered or sold in the United States absent registration under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act.
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 also include information relating to the intention of the Company to complete the Acquisition and the completion of the private placements contemplated in connection with the Acquisition and disclosed in this press release. The forward-looking statements are based on certain assumptions, which could change materially in the future, including the assumption that the non-binding Letter of Intent will lead to a definitive agreement, that the transactions contemplated in the Letter of Intent will be completed, and that the Company will successfully complete the Joint Venture. 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 risk that the Letter of Intent may be terminated, that the transaction contemplated in the Letter of Intent may not result in a binding definitive agreement and any agreement may have terms and conditions different from those contemplated in the Letter of Intent, that the Joint Venture may not be completed, and the Company may not advance the South Mountain Project contemplated in this press release. 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. The United States Securities and Exchange Commission ("SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce.
For further information, please contact:
Thunder Mountain Gold Inc.
Eric Jones, President and C.E.O.
Email: [email protected]
Phone: (208) 658-1037
Jim Collord, Vice President and C.O.O.
Email: [email protected]
SOURCE Thunder Mountain Gold, Inc.
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