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January 25th, 2019
Vancouver, British Columbia
NEWS RELEASE
Negotiations for financing continue with four separate entities aimed at completing the amendment of our mining permit and resumption of operations for the Companies’ Dome Mine Property.
Our ongoing negotiations include the procurement of a $2 million loan to meet and fund the requirements of the BC Ministry of Energy Mines and Petroleum Resources (EMPR) for the permit amendment requirements, and addressing proposals regarding the possible sale of the Dome Mine. To date, no purchase proposals have resulted in any form of intent by either GMI or any other party.
Until last week, the Companies’ had progressed well with negotiations with a Chinese headed firm to the point of a final Draft Agreement for the loan and a proposal to purchase the mine if the terms were acceptable to GMI shareholders. Last week, we were advised by the Chinese firm that they would not be able to proceed with the agreement with GMI due to the currency control issues by the Chinese Government due to the current North American/Chinese political issues. Negotiations are continuing with four other parties that are interested in the Dome Mine at this time.
Gavin Mines raised $1,035,000 in 2017/2018 by sale of NSR units to fund the specific information requirements requested by EMPR to amend GMIs existing mining permit. These technical information requirements were carried out by Gavin Mines consulting experts and are as follows:
- Updated Ground Control Management plan, provided by Golder Engineering,
- Update to the Water Treatment Plant provided by Muddy River Technologies, with planned full scale onsite trial.
- Updated Mine Reclamation & Closure Plan provided by Environmental Resource Consultants.
- Plan for the installation of an underground mine rescue station.
- Plan for the installation of an additional vent raise to surface as required to meet the new Health & Safety Standards.
The required technical reports and implementation plans to carry out these required tasks have now been approved by EMPR.
Upon securing the $2 Million funding, Gavin Mines will carry out the approved technical plans and prescribed tasks at the Dome Mine. Following satisfactorily completion of these tasks, EMPR will amend the mining permit allowing the Dome Mine to resume mining operations.
The following provides the detailed breakdown of the required $2 Million funding:
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Gavin Mines Inc.
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Dome Mine Startup Budget
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Underground Rock Bolting (Cobra)
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$260,000
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Advance Security Deposit Cobra Mining
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$100,000
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Vent Raise (Cobra)
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$130,000
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Muddy River Technologies Full Scale Site Test
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$285,000
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ERM - Reclamation Closure Plan
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$75,000
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Rescue Station Breathing Apparatus
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$100,000
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Ore Storage Building
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$100,000
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Loader
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$150,000
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Mine Rescue Station
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$20,000
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Government Application Fee
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$10,000
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Golder
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$10,000
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Reclamation Bond
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$425,000
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Working Capital
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$153,000
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Subtotal
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$1,818,000
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Contingency (10%)
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$182,000
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$2,000,000
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We are aware that the Shareholders and the companies that are presently under Agreement with GMI being the miller, the hauling company, the miners and the professional representatives are anxiously awaiting completion of a financing agreement, as is GMI. The Management of MMR and GMI takes this opportunity to thank you for your support and patience. We remain confident that the companies’ will secure adequate funding to move the project forward.
Lloyd Tattersall
CEO, President and Director of Metal Mountain Resources Inc & Gavin Mines Inc.
Head Office Contact:
101 -3712 1st Avenue
PO Box 2080
Smithers, British Columbia
V0J 2N0
250-847-0066
For further information please contact:
Curtis Brazeau
VP of Communications
P: 778-846-4907
E: cb@metalmountainresources.com
FORWARD LOOKING STATEMENTS:
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.
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