TORONTO, ONTARIO–(Marketwired – Dec. 23, 2013) – Mammoth Resources Corp. (“Mammoth” or “the Company”) (TSX VENTURE:MTH) would like to announce the final closing of a total of $606,370 on its previously-announced private placement financing (the “Private Placement”), having closed on a further issuance of 905,000 at $0.05 each (the “Units”) for additional proceeds of $45,250. Each Unit will be comprised of one common share of the Company and one common share purchase warrant (a “Warrant”) and each Warrant will entitle the holder to acquire an additional common share of the Company for a period of 24 months from the date of issue at a price of $0.08 per common share for the first 12 months and $0.10 from the 13(th) to the 24(th) month. In aggregate, the Company has issued 12,187,400 Units and raised gross proceeds of $606,370 in the Private Placement, taking into account the Units issued and $554,120 raised in previous tranches as announced on September 19, 2013.
The Company has paid a total of $6,800 and 104,800 Units in finder’s fees on a portion of the Private Placement. The proceeds from the Private Placement have been and will be used for exploration expenditures on its Tenoriba property located in the prolific Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico (refer to the Company’s web site www.mammothresources.ca, for a detailed project location map) and for general working capital purposes.
The Private Placement is subject to the approval of the TSX Venture Exchange. All securities issued pursuant to the Private Placement will be subject to a statutory hold period of four months and one day.
During the past six weeks since the company reported on the commencement of the geophysical survey, Company geologists and numerous locally-sourced labourers have been busy assisting the geophysical contractor to complete the geophysical survey. The survey was completed in late November and the Company has received preliminary results, which at this time it is consolidating with the surface work and results achieved from its mapping and sampling program to permit as precise an interpretation of anomalous features observed in the geophysical survey with its understanding of geological features observed on surface and results from the historic drilling. The Company expects to report on these results in the new year.
Thomas Atkins, President and CEO of Mammoth Resources commented on the geophysical survey, stating: ” Once the results have been compiled from our surface work with the geophysical survey results we’re optimistic that the combination of surface and geophysical features will allow the Company to target numerous features for follow-up drill testing. We remain optimistic about our success in drill testing these targets based on the results we’ve achieved on the surface combined with the results Masuparia Gold achieved in its initial and the first drill program conducted on the property back in 2008 when they reported on 10 of 15 of these initial drill holes with very attractive results.”
Company geologists only recently concluded field activities for the year, having demobilized from the field for the holiday season break. Activities following the conclusion of the geophysical survey included detailed sampling on a close grid spacing of large outcrops of anomalously-mineralized precious metals to better understand the grade potential of such large outcrops to supply feed for a pilot plant heap leach operation which the Company is advancing as a means of further testing the viability of treating Tenoriba material via low-cost heap leach technology, with any cash flow offsetting pilot plant costs.
Following the determination of the potential of these five large outcrops to supply precious metal at sufficiently attractive grades, additional steps to advance the pilot plant heap leach test will include advanced bottle roll testing of material from areas with sufficiently attractive grade to determine reagents consumption, leach timing and size of the material to be treated. From this testing a preliminary formula for leaching combining the aforementioned components will be produced. Material will then undergo column testing to further refine the leaching characteristics prior to then moving into the pilot plant test phase. Numerous steps, including permitting, will need to be advanced before the Company can initiate the pilot plant operation, however once the Company has confidence that the grade of the material is adequate for the pilot plant, it can begin some of the stages required to permit the operation, the operation of which at this pilot plant stage is expected to be quite small in scale.
The Company expects to have results from this initial grid sampling of these large outcrops early in the new year.
About Mammoth Resources:
Mammoth Resources (TSX VENTURE:MTH) 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.
Mammoth Resources Corp.
Thomas Atkins
President & CEO
www.mammothresources.ca
