Mineral Mountain Resources Ltd. is pleased to announce that the Company has signed an Option Agreement (the Agreement) to acquire the mineral rights for 10 contiguous patented mining claims (K4021, K4022, K4032, K4035, K4036, K9037, K4038, K4039, K4040 and K9038) totaling approximately 110 hectares (272 acres) from Larry O. Stahn the Owner), a private owner residing in Emo, Ontario. The newly-acquired property, designated the West Straw Lake Property, straddles the Manitou-Stretch Fault a regional scale structure and adjoins the western limits of the original Straw Lake gold occurrence, a 610m long by 4.5m wide gold-bearing porphyry that was originally discovered in 1934 but never drill tested. Mr. Stahn has held the mineral patents for 26 years and no historical exploration was recorded on the newly acquired property.
The Straw Lake gold occurrence has a similar geological setting as the recently discovered Gaffney Extension by Manitou Gold which is hosted by quartz-feldspar and quartz eyed intrusive rocks found adjacent to the Manitou-Stretch Fault to the northeast of the Straw Lake Property. Manitou announced 5.5 g/t Au over 8.8m and 5.2 g/t Au over 10m in their news release dated November 2, 2011.
Although the Company's Straw Lake gold project is readily accessible by an all-weather road, the Owner's mineral patents presently are only accessible by winter drill roads. The West Straw Lake Property is physically located about 50 km due north of Fort Frances, Ontario and falls within the Kenora mining district of Ontario.
Nelson W. Baker, Mineral Mountain's President and CEO commented: Regionally the Manitou Stretch-Pipestone Lake Fault represents an important exploration target for both high grade and bulk tonnage gold mineralization. We feel that the West Straw Lake Property is an important addition to our overall land position in the area.
The Agreement proposes that Mineral Mountain acquire an undivided 100% interest in the mineral rights of the West Straw Lake Property consisting of the 10 contiguous patented mineral claims, which are subject to a 2% Net Smelter, by making the following cash payments and issuing the following shares from the capital of the Mineral Mountain over a three (3) year period:
Cash Payments: -an aggregate of $CDN 350,000 (THREE HUNDRED AND FIFTY THOUSAND) in cash payments as follows:
$CDN 50,000 on approval by the TSX Exchange;
$CDN 50,000 on or before 6 months of the Agreement date;
$CDN 50,000 on the first anniversary of the Agreement;
$CDN 100,000 on the second anniversary of the Agreement;
$CDN 100,000 on the third anniversary of the Agreement.
Share Issuances- a total of 400,000 (FOUR HUNDREDTHOUSAND) common shares of Mineral Mountain as follows:
50,000 common shares on approval of this Option Agreement by the TSX Exchange;
50,000 common shares on or before 6 months of the Option Agreement date;
50,000 common shares of Mineral Mountain on the first anniversary of the Option Agreement;
100,000 common shares of Mineral Mountain on the second anniversary of the Option Agreement;
150,000 common shares of Mineral Mountain on the third anniversary of the Option Agreement.
If the above commitments are completed by Mineral Mountain whereby it has made payments totaling $CDN 350,000 and issued a total of 400,000 common shares, then the Company will have earned an undivided 100% interest in mineral rights of the West Straw Lake property. To be clear, Mineral Mountain will not earn interest in the West Straw Lake property until all obligations have been met.
Furthermore, the Owner grants Mineral Mountain the right of first refusal to purchase the surface rights covered by the ten (10) mineral patents during the option period and beyond. Mineral Mountain will have the option to purchase the surface rights to the ten (10) mining patents at fair market value at any time.
It is further understood that, as indicated above, the Owner will retain a 2% (two percent) NSR on the ten (10) patented mineral claims listed in Schedule A and that Mineral Mountain will have the right to purchase one-half of the NSR (1%) for $CDN 1,000,000 (ONE MILLION) at any time after the Company has met its obligations set forth above.
The Straw Lake Project is supervised by Wally Rayner, P. Geo., the Company's Vice President of Exploration who has verified the contents of this press release and is the Qualified Person for this project.
About Mineral Mountain
Mineral Mountain is a well-funded explorer of precious metals with approximately $5 million in its treasury. The Company has three major gold projects that meet Mineral Mountain's long term objectives of becoming a strong mid-tier resource explorer.
On Behalf of the Board of Directors of
MINERAL MOUNTAIN RESOURCES LTD.
Nelson W. Baker, President and CEO
For further information, please contact
Brad Baker, Vice-President Corporate Development & Director
(778) 383-3975 firstname.lastname@example.org
Kin Communications Inc.
(604) 684-6730 email@example.com
or visit our website:www.mineralmtn.com
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 statements. All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward looking statements, including statements about the Offering. Forward looking statements are 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 statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that cause the actual results to differ materially from those in forward-looking statements 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 statements 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 those forward-looking statements 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.