Jun 8, 2021
 in 
Precious Metals

Gold Mountain (TSX.V: GMTN) Receives Draft Mining Permit & Announces $10M Bought Deal Financing

Gold Mountain (TSX.V: GMTN) has received a draft mining permit from the Ministry of Energy, Mines & Low Carbon Innovation Communications Office ("EMLI").

"We were told our permitting timelines were aggressive since going public on December 31, 2020. Receiving this draft permit is a testament to the management team's ability to execute and maintain our ambitious schedule," said Kevin Smith, CEO and Director. "Following our initial review of the draft permit we are encouraged to see that all conditions fell inline with our expectations and we anticipate providing our final comments to EMLI very shortly. This is the final step before it is sent up to the Statutory Decision Maker for final approval. This is an exciting development for all of our long term supporters and we look forward to delivering on our commitment of building BC's next high grade gold and silver producer."
Draft Mine Permit

A Draft Mine Permit is provided to applicants in advance of issuing a final permit in order to provide the opportunity to comment on any permit terms and conditions. The Company anticipates providing feedback to EMLI and finalizing permit language in mid-June. Once the permit language is agreed to, the final Mine Permit is submitted to the EMLI Statutory Decision Maker for final approval. The final Mine Permit confirms EMLI's approval of the Company's Mine Plan and Reclamation Plan for work at the Elk Gold Mine.

The Draft Mine Permit contained conditions relating to monitoring, operating, reporting and inspection requirements during the construction and operation of the mine. The document also details the reclamation and closure plan, short-term and long-term water management plan and the financial assurance conditions, including amounts required to begin operations at the Elk Gold Mine.

Other Authorizations

The Mine Permit is the most material authorization required to go into production and its receipt provides the Company with confidence that other ancillary authorizations will follow. Such authorizations include those related to the Explosives Storage and Use, Bulk Explosives Use, Road Use, Effluent Discharge, Industrial Access and Free Use (forest use). The Company is actively pursuing the receipt of all necessary authorizations and does not anticipate any delays in its production schedule resulting from the failure to hold any required authorization.

Financing

Gold Mountain (TSX.V: GMTN) has also announced a $10M bought deal financing led by Canaccord which consists of - 3,572,000 hard-dollar units at a price of $2.10 per unit and 1.09 million flow-through units at a price of $2.31 per unit for total gross proceeds of $10,019,000.

Overview

With the draft permit in hand, and this recently announced financing, Gold Mountain is now in a position to move from a developer to a producer. The focus will be from year 1-3 to deliver 70,000 tonnes of ore per annum, approximately 200 tonnes per day, to the mill located at New Gold's (TSX: NGD) (NYSE: NGD) New Afton Mine situated 130km from the Elk Gold Project, in Kamloops, British Columbia.

Disclaimer: Gold Mountain is a paid marketing client*
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