BOISE, Idaho, April 18, 2012 /PRNewswire/ -- Thunder
Mountain Gold, Inc. (the Company) (TSX-V: THM; OTCQB: THMG), is
pleased to announce that it entered into a Letter of Intent (LOI)
with a Boise, Idaho based private
equity group to advance the Company`s South Mountain Mine toward
production. The private equity group can earn up to 75%
participating interest in the project with an investment of
eighteen million dollars.
Terms of the LOI agreement include a buy in payment of
one million dollars, paid to the
Company upon execution of the agreement, a work commitment of
two million dollars the first two
years, and fifteen million dollars
committed to be spent into the project in the following two years
under a plan to move the project through feasibility and into
production.
"This agreement is an example of the Company's focus to enter
into creative deals that lower the Company`s risk, while
maintaining the upside exposure to gold, silver and other metal
production, with no dilution to Thunder Mountain Gold
shareholders", commented Eric Jones,
President and CEO of Thunder Mountain Gold. As noted, all
expenditures related to the development of the projected
underground mine are being paid by Thunder Mountain's joint venture
partner, with a total expected development budget of USD
$18 million.
The project will be managed by a joint management committee
assembled by both companies. Work is due to start on the project at
the end of May, 2012, with plans for additional drilling, and
re-modeling the 9 mineralized zones to aid in the development of
this valuable resource. It is envisioned that the project will be a
500 to 1,000 ton per day operation when in production.
Qualified Person – G. Peter
Parsley, Professional Geologist, 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 24 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 production from numerous
pipe and lenticular mineralized zones with reported grades of 15%
Zinc (50% in certain zones), 2.0% Copper, 0.10 opt Au, 10 opt Ag,
and 2.0% Pb. A new gold target was revealed during fieldwork at
South Mountain in 2009, and
additional exploration was conducted on the new target to further
identify the gold potential of this gold bearing intrusive
breccia.
The Company's land package at South
Mountain consists of approximately 1,200 acres of mostly
private land – both patented and leased. 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 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.
