Mineral Mountain and Holy Terror Mining Company Mutually Agree to
Amend Original Option Agreement by Extending Expenditure
Requirements from 3 Years to 10 Years
Mineral Mountain and Holy Terror Mining Company Mutually Agree to
Amend Original Option Agreement by Extending Expenditure
Requirements from 3 Years to 10 Years
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 9, 2013) -
Mineral Mountain Resources Ltd. (TSX VENTURE:MMV)(OTCQX:MNRLF)
("Mineral Mountain" or the "Company") is pleased to report that,
due to the difficult, prolonged market uncertainties the mining
industry is experiencing, the Company and the Holy Terror Mining
Company ("Holy Terror Mining") have mutually agreed to extend the
annual expenditure requirements defined in the original option
agreement (detailed previously in a news release dated May 31,
2012) from the end of the third anniversary of the Effective Date
of the Option Agreement to the tenth anniversary. The project now
totals approximately 5048 acres (2043.7 hectares) in size and
encompasses an area 14 kilometers long by 1.5 kilometers wide (the
"Property").
"We understand how hard the Holy Terror Mining team
worked to assemble this wonderful high grade gold project since
1976 and we are delighted that they have given management and our
technical group their unwavering support to move this project
towards a maiden NI43-101 resource," said Nelson W.
Baker, President and CEO of Mineral Mountain.
The Property, which now hosts eight (8) historical gold
producers, is located within a belt of rocks consisting of sheared,
carbonate iron-formation rich, metamorphosed Precambrian rocks that
trends through the Holy Terror gold project. The eight former gold
producing areas included in the Holy Terror Project are the
Holy Terror Mine, the Keystone
Mine, the Bullion Mine, the
Bismarck Mine, the Egyptian
Shaft, the Egyptian Shaft #2, the
Ida Florence Shaft and the Juniper
Mine are all located on major, crustal-scale braided fault
structures that occur within a 300 metre wide belt of vein and
iron-formation related gold mineralization. Seven of the eight
shafts are aligned in a northwest direction for a distance of
approximately 1.4 km and the gold mineralization dips steeply to
the northeast.
Terms of the
Amended Agreement
As in the original Option Agreement, Holy Terror Mining Company
granted Mineral Mountain the exclusive working right and option to
acquire up to 75% interest in the Property on the
following terms:
First Option
(amended)
To exercise its right to earn a
60% interest in the Property, Mineral Mountain
shall:
- make the following cash payments to Holy Terror Mining:
- $250,000 US within three business days after the TSX Venture
Exchange ("TSXV") has issued its final approval for the transaction
(paid);
- $250,000 US on or before the first anniversary of the date of
the Option Agreement (paid);
- $250,000 US on or before the second anniversary of the date of
the Option Agreement; and;
- $250,000 US on or before the third anniversary of the date of
the Option Agreement,
for an aggregate of $1,000,000 US on or before the third
anniversary of the date of the Option Agreement.
- issue Mineral Mountain common shares to Holy Terror Mining as
follows:
- 2,500,000 common shares within three Business Days after the
TSXV has issued its final approval for the transaction
(issued);
- 2,500,000 common shares on or before the first anniversary of
the date of the Option Agreement
(issued);
- 2,500,000 common shares on or before the second anniversary of
the date of the Option Agreement; and;
- 2,500,000 common shares on or before the third anniversary of
the date of the Option Agreement,
for an aggregate of 10,000,000 common shares on or before the third
anniversary of the date of the Option Agreement.
- incur the following exploration expenditures in respect of the
Property:
- $1,500,000 US on or before the first anniversary of the date of
the Option Agreement
(completed);
- $2,500,000 US on or before the second anniversary of the date
of the Option Agreement (completed);
and;
- $3,500,000 US on or before the tenth
anniversary of the date of the Option Agreement,
for an aggregate of $7,500,000 US in exploration expenditures on or
before the tenth anniversary of the date of the
Option Agreement.
Second
Option:
To exercise its option to acquire an additional 15% interest in
the Property, for a 75% interest in aggregate, Mineral Mountain
shall incur additional exploration expenditures of $12,500,000 US
on or before the tenth anniversary of the date of
the Option Agreement.
Once Mineral Mountain has earned its interest in the Property,
Mineral Mountain and Holy Terror Mining will form a joint venture
(the "Joint Venture"). Mineral Mountain will then be responsible
for up to the first $25,000,000 US of expenditures on the Property.
Upon the formation of the Joint Venture and, until all financial
obligations are met and a total of $25,000,000 US has been incurred
by Mineral Mountain, a further cash payment of $250,000 US per year
will be paid to Holy Terror Mining.
Holy Terror Mining has also been granted a 3% net smelter return
royalty.
Qualified Persons
The Holy Terror gold project is managed by Kevin Leonard, a
Professional Geologist with greater than 30 years of exploration
experience. Wally Rayner (P.Geo.), the Company's VP of Exploration,
has verified the contents of this press release and is the
Qualified Person for this project.
On Behalf of the Board of Directors
MINERAL
MOUNTAIN RESOURCES LTD.
Nelson W. Baker,
President and CEO
Reader Advisory
Neither TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
This release includes certain statements that may be deemed
to be "forward-looking information" under Canadian securities laws.
All statements in this release, other than statements of historical
facts, that address events or developments that the Company expects
to occur, constitute forward looking-information. Forward looking
information consists of statements that are not historical facts
and are generally, but not always, identified by the words
"expects", "plans", "could" or "should" occur. Although the Company
believes the expectations expressed in such forward-looking
information are based on reasonable assumptions, such information
does not constitute guarantees of future performance and actual
results may differ materially from those in forward-looking
information. Factors that cause the actual results to differ
materially from those in forward-looking information include gold
prices, results of exploration and development activities,
regulatory changes, defects in title, availability of materials and
equipment, timeliness of government approvals, continued
availability of capital and financing and general economic, market
or business conditions. The Company cautions the foregoing list of
important factors is not exhaustive. Investors and others who base
themselves on the Company's forward-looking information should
carefully consider the above factors as well as the uncertainties
they represent and the risk they entail. The Company believes that
the expectations reflected in the forward-looking information are
reasonable, but no assurance can be given that these expectations
will prove to be correct. Please see the public filings of the
Company at www.sedar.com for further information.