Gold Mountain Mining (TSXV: GUM) announces $6 million private placement flow-through financing for expanded exploration program

October 12, 2011 8:10 AM12 commentsViews: 28

Gold Mountain Mining (TSXV: GUM) announces $6 million private placement flow-through financing for expanded exploration program

VANCOUVER, Oct. 12, 2011 – Gold Mountain Mining Corporation (“Gold Mountain” or the “Company”) is pleased to announce that it entered into an agreement on a best efforts agency basis with Industrial Alliance Securities as lead agent on behalf of a syndicate of agents including Canaccord Genuity Corp and Sprott Private Wealth LP (the “Agents”), for the issuance of up to $6 million of Flow-Through Shares at a price of $1.15 per share. The Agents also have an over-allotment option whereby they can increase the size of the Offering by up to 15%. Net proceeds from the offering will be used for further exploration programs on the recently acquired Elk property, located in southern British Columbia, Canada. The Agents will receive a cash commission equal to 5% of the gross proceeds, plus a 5% compensation option exercisable for a period of 12 months at an exercise price of $1.15 per share.

Elk Property.

The Elk property is located in southern British Columbia, Canada roughly 325 km northeast of Vancouver and has an existing 0.50 million ounce gold resource on the property. The property is within the Similkameen Mining District and consists of 27 contiguous mineral claims and one mining lease covering approximately 16,700 hectares. Gold Mountain acquired the Elk Gold Project in July 2011 from Almaden Minerals Ltd. The Elk property has had a Preliminary Economic Assessment (‘PEA”) completed that demonstrates the potential that a viable open pit gold mining project could be launched. The PEA results for the base case at US$1,000 per troy ounce indicate a potential mining project with a 7 year mine life producing 139,000 ounces of gold at estimated cash operating costs of C$528 per troy ounce, initial capital expenditures of C$9.91 million, pre-tax Internal Rate of Return (IRR) of 51%, payback of 1.85 years and Net Present Value (NPV) of $C28.7 million, using a discount rate of 8%. The results for a US$1,200 per troy ounce case indicate a mining project with a 9 year mine life producing 297,000 ounces of gold at estimated cash costs of C$652 per ounce, initial capital expenditures of C$17.5 million, pre-tax IRR of 39%, payback of 3.3 years and NPV of C$67.9 million using an 8% discount rate.

The PEA did not consider the underground potential of the resource but only the portion of the current resource amenable to open pit mining. The PEA and associated Mineral Resource Estimate does not include the results of the 2010 or 2011 drilling programs. The Company plans to incorporate those drill results into an updated mineral resource estimate for the purposes of more advanced studies.

About Gold Mountain Mining Corporation

Gold Mountain is a new public resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company owns 100% of the 16,700 hectare Elk Gold property, which the Company intends to develop into a precious metal producer within the next two years. Additional information is available on Sedar and a company web site will be available soon.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.

Contacts

James O’Rourke
Chief Executive Officer and Chairman or Rod Shier
Chief Financial Officer of Gold Mountain Mining Corporation
at 604 558-4653

12 Comments

  • I was recommended this web site by my cousin.
    I’m not sure whether this post is written by him as nobody else know such detailed about my problem.
    You are wonderful! Thanks!
    Best Regards Shane

  • Great post. I was checking constantly this blog and I am impressed! Extremely helpful information particularly the last part :) I care for such information much. I was looking for this particular info for a very long time. Thank you and good luck.

  • Hello there, You’ve done an incredible job. I will certainly digg it and for my part suggest to my friends. I am confident they’ll be benefited from this website.

  • Hey! I could have sworn I’ve been to this blog before but after reading through some of the post I realized it’s new to me. Nonetheless, I’m definitely delighted I found it and I’ll be bookmarking and checking back often!

  • An unputdownable discussion is couturier comment. I guess that you should make much on this matter, it mightiness not be a bias topic but mostly grouping are not sufficiency to verbalise on much topics. To the succeeding. Cheers like your Gold Mountain Mining (TSXV: GUM) announces $6 million private placement flow-through financing for expanded exploration program.

  • I am not sure where you are getting your information, but good topic. I needs to spend some time learning more or understanding more. Thanks for magnificent info I was looking for this information for my mission.

  • Juicy Couture, Lyle plus Scott, Ralph Lauren, Franklin along with Marshall … I am additionally proud stockists regarding UGG ” booties ” and since official sanctioned retailer most of us simply offer true GHD straightener. We stock Argyle, Bailey, Cardy, Sheepskin, …

  • Before you can effectively reword comments, you must be creative and clever. Convince the person that just because the content is overly bland, it’s still something they want posted on their Investment Forumssite.

  • Thank you a bunch for sharing this with all folks you really recognize what you are talking approximately! Bookmarked. Please additionally visit my web site =). We will have a link exchange agreement among us!

  • I considered that some of this stuff might have been plagiarized, it’s found everywhere on the net and other peoples websites, unless you’re the original creator?. Thanks Day trader is our specialty.

  • Regarding price point, the scarcity akin to Yugioh invitations are classified to get into basic steps units. That includes normal, ultra some, very, last, hidden, similar, arcidemone drago rosso && carta yu gi oh and, ghosting extraordinary. Underneath the fundamental classification, they occur for carta yu gi oh andd yu gi magical aluminum foil. One of those exists debts get, apart from usually the OCG totes. Specific Superbly Infrequently found, though, is going to be stamped around holographic foil the historical past, while your Extremely Unusual is connected with money aluminum foil. The rest get created each about yellow gold or perhaps even holographic silver treasures aluminum foil. In this case you have the largest service around about yugioh carte yu gi oh again with strategie yu gi oh

  • Pretty nice post. I just stumbled upon your weblog and wished to say that I have really enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again very soon!

Leave a Reply


amazing online casino games