Artemis Gold’s Blackwater mine at final commissioning stage
Artemis now expects to feed first ore to the ball mill in the next few weeks and continues to target first gold pour before year end.
VANCOUVER , Nov. 29, 2011 /CNW/ – 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.
