Thunder Mountain Gold Finalizes $18 Million Joint Venture Agreement
for the South Mountain Mine
BOISE, Idaho, Nov. 12, 2012 /PRNewswire/ -- Thunder Mountain
Gold, Inc. (the Company) (TSX-V: THM; OTCQB: THMG), is pleased to
announce that it finalized the previously announced Joint Venture
(JV) Agreement with ISR Capital, a Boise,
Idaho based private equity group. The JV, called Owyhee Gold
Trust LLC, will immediately begin advancing the exploration and
development of the Company`s South Mountain Mine. ISR Capital can
earn up to 75% participating interest in the project with an
investment of $18 million.
Terms of the Agreement include a buy-in cash payment of
$1 million to Thunder Mountain Gold,
and a work commitment of $2 million
no later than the end of 2013 to earn a 25% interest in the
Project. An additional $5 million
dollars are required to be spent into the project in the
following three years under a plan to move the project through
feasibility and into production. Thunder Mountain Gold has the
option to participate on a pro-rata basis to retain 49% of the
Project after the additional investment of $8 million dollars has been spent by ISR Capital,
or can opt for a 25% participating interest upon the expenditure of
the remaining additional $10 million
earn-in by ISR Capital.
The $1 million buy in payment was
initially secured by a convertible promissory note (the
"Convertible Note"), announced on May
3rd, 2012, as part of the financing agreement
with ISR Capital This note was cancelled effective at the closing
of the JV Agreement. The Convertible Note associated with the
Project financing provided working capital to advance the Company's
projects, and achieve some of its near-term milestones while the JV
Agreement was completed.
- The project will be managed by a joint management team
assembled by both companies. Work is due to start on the project
immediately, with plans to enlarge both the Laxey and Sonneman
tunnels to obtain a large metallurgical sample and conduct
underground core drilling. This work will yield the necessary
information for an economic mine model that includes the nine,
known, high-grade mineralized zones to aid in the development of a
mining plan. It is estimated that the project will initially be a
400-ton-per-day underground operation that will produce multiple
concentrates for sale to a smelter.
Qualified Person – Edward D.
Fields is the Qualified Person as defined by National
Instrument 43-101 responsible for the technical data reported in
this news release.
About South Mountain
The South Mountain project is located in southwest Owyhee County, Idaho approximately 70 air
miles southwest of Boise, Idaho,
and is 20 miles southeast of Jordan
Valley, Oregon. The 100% owned South Mountain Mine was
purchased by Thunder Mountain Gold in 2007. This flagship property
was first mined in the late 1800s, and intermittently through the
1950s, with underground production from numerous mineralized zones
with reported grades of 15% zinc (50% in certain zones), 10 opt
silver, 0.10 opt gold, 2.0% copper, and 2.0% lead. A new gold
target was identified early in their fieldwork at South Mountain.,
and additional exploration was conducted on this target which
defined broad gold mineralization in an intrusive breccia that is
considered part of a larger system responsible for both this and
the high grade polymetallic ore shoots.
The Company's land package at South Mountain consists of
approximately 1,200 acres of mostly private land – both patented
mining claims and leased ranch land. In 2010, the Company
completed a NI 43-101 Technical Report that incorporated all the
new drill and sampling data. This report was required as part
of the Company's listing on the TSX Venture Exchange in 2010.
The NI 43-101 can be reviewed on the Company`s website at
www.thundermountaingold.com, or on www.SEDAR.com.
About Thunder Mountain Gold, Inc.
Thunder Mountain Gold, a junior gold exploration company founded
in 1935, holds a 100% interest in several U.S. gold projects. The
Company's principal assets are The South Mountain Project – a
historic former producer of gold, silver, zinc, lead, and copper,
located in southern Idaho, just
north of the Nevada border, and
their Trout Creek Project – a grass roots gold target in the
Eureka-Battle Mountain trend of central Nevada, currently under Joint Exploration
Agreement with Newmont Gold. For more information on Thunder
Mountain, please visit the Company's website at
www.Thundermountaingold.com.
U.S. Securities Act of 1933
This press release does not constitute an offer of any
securities for sale or a solicitation of an offer to purchase any
securities. The securities to be issued in connection with the
Acquisition t have not been and will not be registered under the
United States Securities Act of 1933 (the "1933 Act") and
may not be offered or sold in the United
States absent registration under the 1933 Act or pursuant to
an available exemption from the registration requirements of the
1933 Act.
Forward-Looking Statements
This press release contains forward-looking statements that
are based on the beliefs of management and reflect the Company's
current expectations. The forward-looking statements in this press
release also include information relating to the intention of the
Company to complete the Acquisition and the completion of the
private placements contemplated in connection with the Acquisition
and disclosed in this press release. The forward-looking statements
are based on certain assumptions, which could change materially in
the future, including the assumption that the non-binding Letter of
Intent will lead to a definitive agreement, that the transactions
contemplated in the Letter of Intent will be completed, and that
the Company will successfully complete the Joint Venture. By their
nature, forward-looking information involves known and unknown
risks, uncertainties and other factors that may cause actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking information. Such factors include
the risk that the Letter of Intent may be terminated, that the
transaction contemplated in the Letter of Intent may not result in
a binding definitive agreement and any agreement may have terms and
conditions different from those contemplated in the Letter of
Intent, that the Joint Venture may not be completed, and the
Company may not advance the South Mountain Project contemplated in
this press release. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, investors should not place undue reliance
on forward-looking information. Forward-looking information is
provided as of the date of this press release, and the Company
assumes no obligation to update or revise them to reflect new
events or circumstances, except as required in accordance with
applicable laws.
Cautionary Note to Investors
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release. The United States Securities and Exchange
Commission ("SEC") permits mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce.
For further information, please contact:
Thunder Mountain Gold Inc.
Eric Jones, President and
C.E.O.
Email: eric@thundermountaingold.com
Phone: (208) 658-1037
Jim Collord, Vice President and
C.O.O.
Email: jim@thundermountaingold.com
SOURCE Thunder Mountain Gold, Inc.
