Metal Mountain Resources Inc.
Gavin Mines Inc.

November 29th, 2010
Vancouver, British Columbia

Initial Tranche Financing Closed on Dome Mountain Project

Management of Metal Mountain Resources Inc. (“Metal Mountain”) is pleased to announce that on November 25, 2010 Metal Mountain agreed to complete certain transactions involving its wholly-owned subsidiary, Gavin Mines Inc. (“Gavin Mines”), which will result in Metal Mountain transferring and selling the mineral property interests comprising the Dome Mountain Project to Gavin Mines for $4,112,527, which sum will be paid to Metal Mountain by way of promissory notes (“Promissory Notes”) and through the issuance of 650,000 common shares of Gavin Mines. Gavin Mines will be the operating Company for the Dome Mountain Mine.

On the same day, Metal Mountain entered into an agreement with Minex Minerals Ltd. (“Minex”) pursuant to which Minex will purchase 350,000 common shares of Gavin Mines (representing a 35% interest in Gavin Mines) for $12,000,000. Payment of the $12,000,000 will be made to Gavin Mines in four tranches with the final payment due on March 31, 2011. The initial tranche payment of $200,000 was paid on November 25, 2010 for which Minex received 5,833 common shares of Gavin Mines. In the event that Minex does not complete on subsequent tranches of funding in accordance with the terms of the written agreement, then Minex will automatically surrender any shares previously issued to it for cancellation by Gavin Mines and Minex’s interest in the Dome Mountain Project will be limited to a 7% net profits interest royalty, which royalty will terminate upon Minex having received royalty payments equal to the amount of all funds paid by Minex to Gavin Mines prior to its shares being surrendered for cancellation.

With the proceeds received from Minex, Gavin Mines will pay off the Promissory Notes and use the balance of the funds to carry out:

  • The Capital Expenditures ($4,313,700) necessary to advance the Dome Mountain Mine into commercial production as set forth in the NI 43-101 compliant prefeasibility study prepared by Linden Mining and Consulting entitled “Technical Report for the Dome Mountain Project, British Columbia, Canada” dated September 22, 2010

  • The exploration work set forth in the NI 43-101 technical report prepared by Giroux Consultants Ltd. entitled “Technical Report on the Dome Mountain Gold-Silver Project, Omineca Mining Division, British Columbia, Canada” dated April 2010.

  • Copies of both reports are available on the Metal Mountain Resources Inc. website.

    For further information please contact:

    Curtis Brazeau
    VP of Communications
    P: 778-846-4907


    The information contained in this website is provided solely for the reader's general knowledge. The information is not intended to be a comprehensive review of all matters and developments concerning Metal Mountain Resources Inc. All information is offered on a "best intentions" basis. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way passed upon this information and no representation or warranty is made by the Company to that effect.

    This website includes "forward looking statements". Other than statements of historical fact, all statements included in this document, including without limitation, statements regarding exploration results, future plans and objectives of the Company may be forward looking statements. These statements may reflect management's current beliefs and are based on information currently available to management. Forward looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements, including, but not limited to, general economic conditions, changes arising as drilling results unfold, changes in regulatory environments affecting the Company and the availability and terms of subsequent financings. Although the forward looking statements included in this document are based upon what management believes to be reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.