Hunt Mining Closes Purchase of Martha Mine, Santa Cruz Province, Argentina
May 12 2016 - 7:00AM
Hunt Mining Corp. (the “
Corporation” or
“
Hunt”) (TSX-V:HMX) is pleased to announce the
closing on the purchase of the Martha Mine, located in the Santa
Cruz Province, Argentina and 50 kilometres northeast of the town of
Gobernador Gregores, Argentina. The Martha Mine has year round
access, contains a flotation mill mill, equipment and
buildings and commenced silver production in 2008. Additional
information including photos of the Martha Mine are available on
the Corporation’s website at: www.huntmining.com. The Corporation’s
acquisition of the Martha Mine will further the transition from an
exploration entity to a mining entity. Hunt has one of the largest
land packages in Santa Cruz and plans to use its acquired flotation
mill and infrastructure for mineral exploitation.
Hunt has been an active exploration and
development entity in the Santa Cruz Province, Argentina since
2006. Since 2006, the Corporation has invested a total of CDN
$40,000,000 in its Santa Cruz properties which includes the
flagship La Josefina Gold / Silver Project (“La Josefina”) and La
Valenciana Gold / Silver Project (“La Valenciana”). Both La
Josefina and La Valenciana are located within 120 kilometres of the
Martha Mine.
Chairman and CEO Tim Hunt states: “We are
extremely pleased with the purchase of the Martha Mine, and look
forward to initiating production in 2016. The Martha Mine is a
state of the art facility, with the capacity to process localized
ore from regions surrounding the Martha Mine mill, which includes
our La Josefina and La Valenciana projects. We look forward to
working with the Argentine government and local work force for
continued exploration and future mining.”
The parties involved include an Argentine
subsidiary of the Corporation and an Argentine subsidiary of Coeur
Mining, Inc. (NYSE:CDE). The purchase price for the Martha mine,
flotation mill, equipment and buildings is US$2.7 million plus
applicable taxes.
The terms for payment were US $1.2 million, plus
approximately US $400,000 in taxes paid at closing, with the
balance of US $1.5 million due 365 days after the closing (the
“Balance Payment”). The financing for this acquisition came from a
related party with 8% interest per annum and is reviewable and
renewable on a month to month basis.
The Corporation will retain an independent
qualified person to prepare a technical report for the Martha mine
in compliance with National Instrument 43-101-Standards of
Disclosure for Mineral Projects (the “Report”), which Report is
expected to be received on or about 120 days from the initial
closing. A further news release will be issued by the Corporation
when the Report is available, providing further details about the
Martha Mine.
About Hunt
Mining
Hunt Mining Corp. has continued to develop its
properties as an active and aggressive explorer in Santa Cruz since
2006. During that time, Hunt's wholly owned subsidiary, Cerro
Cazador S.A., has completed exploration activity including
approximately 64,000 meters of HQ core drilling, 416 line
kilometers of Induced Polarization geophysical surveys and more
than 20,000 surface soil, sediment, channel, chip, and trench
samples, beyond the historical work previous to the same
properties. The Corporation also holds a 100% interest in the
Martha Mine through an Argentina subsidiary.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. This news release
contains forward-looking statements. The Corporation has provided
the forward-looking statements in reliance on assumptions that it
believes are reasonable at this time. The reader is cautioned that
the assumptions used in the preparation of the forward-looking
statements may prove to be incorrect. All such forward-looking
statements involve substantial known and unknown risks and
uncertainties, certain of which are beyond the Corporation’s
control. Such risks and uncertainties include, without limitation,
delays resulting from or inability to obtain required regulatory
approval. The actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do, what
benefits, including the amount of proceeds, the Corporation will
derive therefrom. Readers are cautioned that the foregoing list of
factors is not exhaustive.
Investors are cautioned that until the
Report is prepared and disclosed, there may not be sufficient
information about the Martha mine so as to enable investors to make
a reasonable investment decision about the
transaction.
For more information contact:
Dean Stuart
Investor Relations
T: (403) 617-7609
E: dean@boardmarker.net
Bob Little
Chief Financial Officer
T: (509) 290-5659
E: blittle@huntmining.com
W: www.huntmining.com
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