Mr. Nelson Baker reports
MINERAL MOUNTAIN ANNOUNCES C$2.0 MILLION NON-BROKERED PRIVATE PLACEMENT
Mineral Mountain Resources Ltd. is arranging a non-brokered private placement of up to 13.3 million units of the company to be sold at a price of 15 cents per unit to raise gross proceeds of up to $2-million. Each unit consists of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to purchase one common share of the company for a period of one year from closing at an exercise price of 25 cents per warrant share.
The net proceeds raised from the private placement are intended to be used primarily to finance a 4,000-metre phase 2 directional drilling program designed to test high-grade gold values recorded historically down plunge along the East Limb structure. The first drill hole will be a 1,600-metre mother pilot hole to a vertical depth below the 1,000-metre level, which will including downhole geophysics (downhole electromagnetics). This mother pilot hole will crosscut the main shear zone at the bottom of the hole up to 200 metres away to intercept the high-grade zones Homestake drilled in the 1980s below the main Standby mine, a turn-of-the-century gold producer.
"Our phase 1 drill program results completed last season and the company's comprehensive database provide strong support that the 30-metre-wide East Limb structure, which hosts the Standby mine deposit, is believed to be part of a large, deep thickened body of gold-hosted iron formation, similar to the host rocks of the Homestake mine that plunge to the south-southeast," stated Nelson Baker, president and chief executive officer of Mineral Mountain Resources.
The securities issued pursuant to the private placement will be subject to a four-month-plus-one-day hold period in accordance with applicable Canadian securities laws. The company may pay a finders' fee on a portion of the financing in accordance with TSX Venture Exchange policy.
About Mineral Mountain Resources Ltd. and the Rochford gold project
Mineral Mountain Resources, through its wholly owned subsidiary Mineral Mountain Resources (SD) Inc., is focused on the exploration and, if warranted, development of its 100-per-cent-owned Rochford gold project, situated along the highly prospective Homestake gold belt in the Black Hills of South Dakota, United States. The Rochford project covers approximately 7,500 acres and straddles three major trends of structurally thickened auriferous iron formation that host ledge-type gold mineralization.
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