|October 24, 2016|
MAMMOTH RESOURCES ANNOUNCES AMENDMENT TO OPTION TERMS ON ITS TENORIBA EXPLORATION PROPERTY, CHIHUAHUA MEXICO
|Toronto, Canada (October 24, 2016) - Mammoth Resources Corp. (TSX-V: MTH), ("Mammoth" or the "Company") is pleased to announce that it has signed an amendment to the terms of its option agreement with the vendors to acquire 100% of the Tenoriba precious metal project in the prolific Sierra Madre region of Chihuahua State, Mexico. The amended terms include the payment of 600,000 shares for: (a) the reduction of US$41,662 in future options payments; and (b) the postponement of US$84,837 in option payments from June 30, 2016 through December 31, 2017 (under the terms of the agreement announced January 23, 2015), with payments under the amended terms postponed to December 31, 2016 through December 31, 2019. The Agreement also allows for a two percent Net Smelter Return Royalty payable to the vendors upon commercial production. This Royalty remains, however can be purchased by Mammoth at any time within a three year period from commencement of commercial production for US$1,500,000.|
Thomas Atkins, President and CEO of Mammoth Resources commented on the amended terms stating: "The amendment to the terms of the Company's option agreement with the vendors is reflective of the strong relationship we have with the vendors and our shared optimism in the potential of the Tenoriba High Sulphidation, precious metal project. These new terms take into account the past years of weak equity capital markets for mineral exploration companies and the potential such challenges could extend into the future. The reduction of US$41,662 in future vendor payments at the recent US$ to C$ exchange rate of US$1 = C$1.32 equates to approximately C$55,000 in reduced vendor payments. This amount divided by the 600,000 shares issued attributes a value of C$0.09 per Mammoth share whereas one month ago Mammoth announced closing a C$202,500 private placement priced at C$0.02/unit. Clearly, the issuance of these shares to reduce this payment is an attractive use of capital at this time and given the recent valuation of the Company's shares.
The issuance of these shares has received conditional approval by the TSX-V exchange pending the release of this news.
The Company would also like to correct an error in the announcement of the closing of the private placement financing dated September 6, 2016. In this announcement, the Company stated that a finders' fee of 142,000 shares were paid whereas the correct number is 114,000 shares.
About Mammoth Resources:
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% 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.
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.
Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.
You can view the Next News Releases item: Tue Nov 29, 2016, MAMMOTH RESOURCES ACQUIRES FOUR YEAR DRILL PERMIT EXTENSION TO DRILL ITS TENORIBA PROJECT
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