Mammoth Resources (MTH-V) Feb 15, '17 has signed a contract with a Mexican drill contractor following site due diligence whereby the contractor has committed to drill at least 2,500 metres of diamond drill core on Mammoth's Tenoriba high-sulphidation precious metal property located in the Sierra Madre region of Chihuahua state, Mexico, with from 30 per cent to 60 per cent of the cost of the contract to be paid for in common shares of Mammoth, subject to Toronto Stock Exchange approval. The company would also like to announce that the contractor has subscribed for the company's recently announced private placement of a unit consisting of one common share and one common share purchase warrant, with each warrant exercisable for a period of 18 months following closing of the private placement, at an exercise price of 12 cents.
Thomas Atkins, president and chief executive officer of Mammoth, commented on this agreement and investment stating: "The company has built a strong relationship with this drill contractor and the senior executive of this contracting firm, himself having studied and worked as a geologist, upon seeing the potential of the Tenoriba property, was keen to consider a structure whereby his firm could assist us in the challenge of raising capital for drilling, while, at the same time, gain some exposure to the success of the drill program and the advancement of exploration at Tenoriba. We think this can be a win-win situation and are very pleased to arrive at such an agreement. Following the field program, which is expected to start shortly at Tenoriba, and will include trenching, and road access and pad construction to facilitate drilling, Mammoth hopes to begin an approximate 2,500[-metre] diamond drill program to test various targets on the property. As a result of this agreement with the contractor, the company will be required to raise far less capital in the equity market for this program. We're equally pleased that the contractor has shown confidence in the company and the Tenoriba project by investing in the recently announced private placement."
About Mammoth Resources Corp.
Mammoth Resources is a mineral exploration company focused on acquiring and defining precious metal resources in Mexico and other attractive mining-friendly jurisdictions in the Americas. The company has an option to acquire 100 per cent in the Tenoriba property located in the Sierra Madre precious metal belt in southwestern Chihuahua state, Mexico. The company continues to seek other option agreements in the Americas on other properties it deems to host above average potential for economic concentrations of precious metals mineralization.
To find out more about Mammoth Resources and to sign up to receive future press releases, please visit the company's website at: www.mammothresources.ca |
