Gold Mountain Mining Corp - GMTNF stock
Overview[edit]
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.[1]
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.[2]
Financial Issue and Mining Halt[edit]
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.[3]
Highlights[edit]
All assay results for the Company's Phase lll Drill Program (15,500m) have been received, and they show that the drillers successfully expanded the known mineralization in the Gold Creek and Siwash North zones by discovering substantial high-grade intervals.[2]
Some examples of notable intercepts are:
- Gold concentrations were 65.37 g/t across 1.31 m, including 276 g/t over 0.31 m
- Including 258 g/t Au over 0.38 m, 48.38 g/t Au was found across 2.04 m.
- Gold content of 59.54 g/t over 1.30 m, including 258 g/t over 0.30 m
- Over a length of 0.79 metres, 104.72 g/t of gold was found, with 167 g/t found over 0.49 metres.
- In addition to the 101 g/t Au over 0.47 m, there is 32.32 g/t Au across 1.47 m.
- Over 0.95 m, 66.60 g/t Au With a gold content of 102 g/t over 0.62 m
Intervals of the assay are shown as apparent thickness. The actual thickness is generally 70-90% of the precise thickness; however, this might vary depending on the direction of the drill hole.[2]
The Outcome of the Phase lll Drilling Phase[edit]
The Company's Phase lll exploration programme, which spanned 15,500 metres, was completed in the second quarter. 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.[2]
Silver Royalties[edit]
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.[4] 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.[5]
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.[6]
Funding[edit]
GMNTF announced that it has entered into a modification to its underwriting agreement with Eight Capital as lead underwriter and exclusive book runner on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to acquire extra. Each Unit represents one share of common stock in the capital of the firm and one-half of a right to purchase a share of common stock (each whole warrant, a "Warrant"). The contracts will be exercisable for a period of twenty-four months after the closing of the Offering at an exercise price of one dollar and seventy-five cents per share of the company's common stock [3]. A prospectus supplement to the Company's short form basic shelf prospectus dated December8, 2021 (the "Prospectus Supplement") will be used in all Canadian jurisdictions other than Quebec to effect the Offering. In addition, the Units may be issued through a private placement in the United States in compliance with the Securities Act of 1933, as amended (the "1933 Act") and applicable state securities laws, but not in any foreign jurisdiction where a prospectus filing requirement or similar obligation exists. Once finalised, the Prospectus Supplement will be posted to SEDAR under the company's profile at www.sedar.com. It will also be submitted to the securities regulatory authorities in every Canadian province save from Quebec.[2]
- ↑ Finance.yahoo.com. Gold Mountain Mining Corp. (GMTNF). Retrieved on 12/13/2022.
- ↑ 2.0 2.1 2.2 2.3 2.4 Accesswire.com, Gold Mountain Provides Corporate Update. Retrieved on Wednesday, September 14, 2022.
- ↑ wdhn.com. Elk Gold Mine Receives Demand for Payment. January 10, 2024.
- ↑ PR-Inside. Gold Mountain Enters into a Silver Royalty Agreement with Silver Crown. May 24, 2023.
- ↑ Bloomberg. Silver Crown Royalties Exercises Top Up Option on Royalty Purchase. May 25, 2023.
- ↑ Stockwatch. Gold Mountain receives $500K production bonus payment. July 24, 2023.
OTC Symbol: GMTNF | OTC Tier: OTCQB
