Gold Mountain Mining Corp - GMTNF stock

Overview

Gold Mountain Mining Corp. (OTC: GMTNF, TSX: GMTN), with headquarters in Canada, is in the business of purchasing, exploring, and developing mining properties. It searches for potential mining sites for precious metals in various locations. South Central British Columbia is the location of the Elk Gold project. The company owns the rights to the 32 mineral claims that total 22,152 hectares and the two mining lease that total 646 hectares that make up the property. The company formally transitioned from being known as Freeform Capital Partners Inc. to Gold Mountain Mining Corp. in 2020. The company was founded in 2018 and had its headquarters in Vancouver, which is situated in Canada.

Press statement from Gold Mountain, dated September 14, 2022, has been updated to reflect the corrections made to the technical disclosure. The exact breadth of the intercepts, quality assurance and quality control methods, analytical techniques, and the fact that all tests were performed at Actlabs in Kamloops, BC, have all been updated in this erratically issued news statement. The drill program's findings are final and cannot be altered.

Operations

Financial Issue and Mining Halt

In January, 2024, two subsidiaries, which hold the concessions for the Elk Gold mining project, have been served with "demand for payment" notices by two of their mine site contractors. These demands amount to approximately $5.6 million in total, covering contract work done on the Elk Gold mining project. Out of this sum, $4.7 million pertains to expenses incurred by the mining contractor, and a notice of security enforcement has been received from this contractor in relation to a previously announced and executed general security agreement (GSA). The company is currently exploring its legal options in response to these notices. While Gold Mountain lacks the financial means to settle these amounts at present, it is actively seeking solutions to collaborate with these contractor groups. It's important to note that mining operations were temporarily halted for the Christmas holidays and remain paused at this time.

Drilling

The Company's Phase lll exploration programme, which spanned 15,500 metres, was completed in 2022. Several critical regions of the vein model were successfully enlarged, and good gold grades were repeatedly intercepted throughout the operation. The 1300 vein's mineralization was drilled to a depth of more than 400 metres below ground, a 150-meter down-dip extension from the surface. The geological confidence in zones with high-grade inferred resources in the current mineral resource estimate has been bolstered thanks to further drilling in those locations. Based on the successful Phase III campaign, an updated mineral resource estimate is scheduled to be completed in Q4.

Results for the Phase lll Drill Program showed that the drillers successfully expanded the known mineralization in the Gold Creek and Siwash North zones by discovering substantial high-grade intervals. Gold concentrations were 65.37 g/t across 1.31 m, including 276 g/t over 0.31 m.

Silver Royalties

Gold Mountain Mining Corp. has a royalty purchase agreement with Silver Crown Royalties Inc. (SCR). According to this agreement, the Company sold a royalty on 45% of the total gross proceeds of silver sales (the "Royalty Percentage") from its Elk Gold project, situated in British Columbia, Canada The consideration for this transaction amounts to a maximum of $3,300,000. SCR exercises their option to increase the Royalty Percentage to 90% by making an additional payment of $1,250,000 in cash. Additional production bonuses are available to Gold Mounain, which may total up to $2,000,000.

Pursuant to the agreement, Gold Mountain Mining Corp. received a silver production bonus payment of $500,000 from Silver Crown Royalties Inc. This payment was made in accordance with the terms specified in the royalty agreement between Gold Mountain Mining Corp. and SCR. The eligibility for this production bonus payment was based on the company's achievement of selling 6,666 contained ounces of silver on a trailing annualized basis for six consecutive months, which concluded on April 30, 2023. To qualify for the next production bonus payment, Gold Mountain Mining Corp. must achieve the sale of 8,888 contained ounces of silver on an annualized basis.

Funding

December, 2024

Gold Mountain completed a $1.21 million flow-through private placement, issuing 22 million flow-through common shares at $0.055 per share. The proceeds will fund exploration expenditures at the Elk Gold Project in Merritt, British Columbia, qualifying for Canadian and BC flow-through mining tax incentives. Additionally, the company paid $84,700 in finder's fees and issue 1.54 million finder's warrants with a $0.055 exercise price and a 24-month term.

August, 2024

Financing of $6.5 million was received from the issuance of a convertible secured debenture to choomEEnsh a Nlaka'pamux LP, an affiliate of Nhwelmen Construction GP Ltd. The debenture carries a 10% annual interest rate, matures in 10 years, and is convertible into 81.25 million shares at $0.08 per share.

April, 2024

Gold Mountain closed its private placement and debt settlements, raising $750,000 in gross proceeds. The company settled significant debts with secured creditors Nhwelmen Construction LP Ltd. and Hedge Minerals Corp., issuing common shares at $0.0075 per share. Additionally, Gold Mountain converted $1,249,400 in unsecured debt into common shares and will repay the remaining Nhwelmen debt over 24 months at 18% interest.

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OTC Symbol: GMTNF | OTC Tier: OTCQB