Brookmount Explorations Announces Definitive Agreement to Acquire Canadian Based Gold Project

Rhea-AI Summary

Brookmount Explorations, Inc. (BMXI) announced a binding agreement to acquire the Moosehorn Gold Project in Yukon from Gennex Gold Corp. The project covers approximately 6,000 hectares and includes significant infrastructure, with an initial gold resource estimate of 39,000 oz, potentially expanding to 1 million oz. In exchange for the project, Gennex will receive shares equivalent to 25% of Brookmount's issued shares and $1.65 million over 18 months for operational support. This acquisition marks Brookmount's strategic initiative to diversify into developed gold markets.

Positive

• Acquisition of Moosehorn Gold Project enhances Brookmount's gold reserves with potential resources of 1 million oz Au.
• Inclusion of critical infrastructure like an accommodation camp and heavy equipment aids in quick production ramp-up.
• Appointment of Errin Kimball as Director and Project Manager brings valuable expertise to the project.

Negative

• The agreement requires issuing a significant number of shares, potentially diluting existing shareholder equity.
• Brookmount's commitment of $1.65 million over 18 months may strain financial resources.

Reno, Nevada, June 15, 2021 (GLOBE NEWSWIRE) -- Brookmount Explorations, Inc. (OTC Pink: BMXI) (“Brookmount”) is pleased to announce that it has entered into a binding agreement with Gennex Gold Corp. pursuant to which Gennex Gold will sell to Brookmount its entire interest in the Moosehorn Gold Project in Yukon, Canada, situated approximately 20km south of the Trans Alaska Highway, near Dawson City. The project covers approximately 6,000 hectares, and includes an accommodation camp, airstrip, fuel depot and a comprehensive inventory of heavy equipment including excavators, diggers, ore trucks and a large ball mill.

The acquisition also includes all relevant and exploration and production related licenses and permits. Existing gold reserves have been partially surveyed under 43-101 requirements, resulting in an initial estimated total resource of 39,000 oz Au. Preliminary estimates indicate a total resource for the area of approximately 1 million oz. Au.

In exchange for 100% of Moosehorn, Gennex will receive shares in Brookmount equivalent to 25% of the issued and outstanding shares of the Company calculated on a fully diluted basis and issued at closing. In addition, the Company has agreed to inject a total of $1.650,000 into Gennex’ operations over a period of approximately 18 months, to meet additional cash obligations arising from the purchase and to provide funds to continue a drilling program to increase Moosehorn’s confirmed resource as well as bring the project to production capability. Following the closing, Errin Kimball, principal of Gennex and a highly experienced geological engineer with extensive experience in remote gold projects in arctic and sub arctic environments, will be appointed as a Director of Brookmount and retained by the Company as Project Manager.

In announcing these initiatives Nils Ollquist, CEO of the Company commented as follows: “This agreement with Gennex represents a major breakthrough for our Company. It is our first successful acquisition as part of the Company’s strategic initiative to diversify its gold reserve and production platform into developed markets. The Moosehorn project is based in a highly productive area of the Yukon gold belt, it currently has confirmed reserves of close to 40,000 oz. Au. with a possible 1 million oz.au to be proven up with further drill testing, and existing infrastructure which will enable it to be brought into production relatively quickly. We anticipate closing on the acquisition by the end of June.

About Brookmount Explorations, Inc:

Brookmount presently conducts gold mining and processing operations through its Indonesian subsidiary incorporated in Sulawesi Province, Republic of Indonesia, one of Asia’s most dynamic and rapidly expanding economies with extensive reserves of natural resources and minerals including timber, coal, gold, and hydrocarbons. The company is also in the process of  building a platform of high quality gold assets in major international markets such as North America, South Africa and Australia.

Forward Looking Statements:

This current press release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any products sold or cash flow from operations.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with distribution and difficulties associated with obtaining financing on acceptable terms. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.  

For More Information:
Investor Relations:
Chesapeake Group
Tim Rieu
1(410)8253930
info@chesapeakegp.com

The Company:
nils.ollquist@brookmountgold.com
http://www.brookmountgold.com/

FAQ

What is the Moosehorn Gold Project acquisition by Brookmount Explorations?

Brookmount Explorations has entered into an agreement to acquire the Moosehorn Gold Project from Gennex Gold Corp., which includes extensive gold reserves and necessary infrastructure.

What are the key details of the Brookmount and Gennex deal?

Gennex will receive shares equivalent to 25% of Brookmount's outstanding shares and $1.65 million over 18 months for the Moosehorn project.

How does the Moosehorn acquisition impact BMXI's future?

The acquisition is expected to diversify BMXI's gold assets and enhance production capabilities with a potential increase in confirmed gold resources.

When is the acquisition of Moosehorn expected to close?

Brookmount anticipates closing the acquisition by the end of June 2021.