TSX-V TRADING SYMBOL: GUM
Website: aumtn.com
VANCOUVER,
Nov. 29, 2011 /PRNewswire/ - Gold
Mountain Mining Corporation ("Gold Mountain" or the "Company") is
pleased to announce that it has closed the second tranche (the
"Second Tranche") of its flow-through private placement (the
"Offering"). In connection with the Offering, Gold Mountain
issued an aggregate of 4,494,311 common shares, intended to qualify
as flow-through shares under the Income Tax Act ("Flow-Through
Shares") at a price of $1.15 per
Flow-Through Share for aggregate gross proceeds of $5,168,457, of which 771,739 Flow-Through Shares
were issued in the Second Tranche.
The Offering was completed pursuant to the terms
of an agency agreement entered into by the Company and Industrial
Alliance Securities Inc. as lead agent on behalf of a syndicate of
agents including Canaccord Genuity Corp. and Sprott Private Wealth
LP (collectively, the "Agents") as of the date hereof. In
consideration for the services of the Agents in connection with the
Second Tranche, the Company paid the Agents a cash commission equal
to 5% of the gross proceeds raised in the Second Tranche,
representing an aggregate cash payment of $44,375 and issued the Agents common share
purchase options, exercisable to acquire up to 38,587
non-flow-through common shares of the Company (the "Agents'
Shares") for a period of 12 months from the closing of the Second
Tranche at an exercise price of $1.15
per Agents' Share.
The proceeds of the Offering will be used to
fund exploration activities on Gold Mountain's Elk property.
All securities issued in the Second Tranche will be subject to a
hold period under applicable securities laws which expires on
March 30, 2012.
Elk Property
The Elk property is located in southern British Columbia, Canada, roughly 325 km
northeast of Vancouver. 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.
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.
ON BEHALF OF THE BOARD
"Rod Shier" (signed)
Rod Shier, Chief Financial
Officer
Forward-Looking Statements: This news release contains
forward-looking statements that are based on the Company's current
expectations and estimates. Forward-looking statements are
frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate",
"suggest", "indicate" and other similar words or statements that
certain events or conditions "may" or "will" occur, and include,
without limitation, statements regarding the planned use of
proceeds of the Offering and the Company's plans with respect to
the exploration and development of its projects. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual events or
results to differ materially from estimated or anticipated events
or results implied or expressed in such forward-looking statements.
Any forward-looking statement speaks only as of the date on which
it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise. Forward-looking statements
are not guarantees of future performance and accordingly undue
reliance should not be put on such statements due to the inherent
uncertainty therein.
SOURCE Gold Mountain Mining Corporation