Montan Mining Provides Corporate Update
TSX VENTURE: FMN
Vancouver, BC / TheNewswire / September 18th, 2017 - Montan Mining Corp. (TSXv: MNY | FSE: S5GM | SSE: MNYC) ("Montan" or the "Company") is pleased to announce that the Company has arranged an extension of its Term Sheet with Pacific Alliance Capital Group Ltd. ("Pacific Alliance") for the purchase, by Montan, of the Peruvian companies Kairos Capital Peru S.A.C ("Kairos") and M&S Transportes y Servicios Generales S.R.L ("Mirador") from Pacific Alliance (please refer to the News Release of February 16th, 2017). The extension is granted until December 30th, 2017 to facilitate completion of the transaction closing requirements. The key assets ("Pacific Alliance Assets") held by the companies under acquisition include the 100% owned 125 tonnes per day ("TPD") Mirador Processing Plant located in Chimbote, Peru and six (6) 100% owned mineral concessions.
Corporate Strategy Update: Over the last two quarters the Company has been in negotiatons with different groups regarding potential transactions which could secure a traditional precious metals mining asset for the company in Peru. The company believes that general investor interest for a dedicated precious metals and base metals milling operations is limited owing to the inherent risk arising from the reliance on third party supply of mineral feed. The absence of a flagship Company-owned or propriertary mineral supply has caused previously arranged or discussed financing alternatives to be very punitive in terms of cost of capital and terms. The company will announce further updates on its new, expanded corporate strategy as transaction details are advanced and can be made available to the public.
Promissory Note Financing: The Company is pleased to announce that it has entered into promissory notes ("Notes") for principal of $205,000. The proceeds of the Notes will be used for general working capital purposes.
The Notes are due 12 months from the date of closing and bear interest at a rate between 2.0% and 6.0% per annum, payable at maturity.
Participants in the Notes included Premier Silver Corp., a private BC company with mining assets in Peru, Water Street Assets Inc. and Luis F. Zapata, Executive Chairman of Montan Mining.
The Company also wishes to announce that it has received the resignation of Mr. Sam Wong from the Board of Directors in order for Sam to focus on his other business ventures. The company thanks Mr. Wong for his invaluable service and wishes him well in his future endeavours.
About Montan Mining Corp.
Montan Mining Corp. is an emerging gold producer focusing on monetizing mining assets in Peru. The company is backed by an experienced management team with diverse technical, market, and finance expertise and is supported by committed and sophisticated investors focused on building long term value for shareholders.