TORONTO, ONTARIO, Jun 13, 2013 (Menafn – Marketwired via COMTEX) –Mammoth Resources Corp. would like to announce the re-pricing of its previously announced non-brokered private placement financing for up to 5,000,000 units of the company (the “Units”) at a price of 0.10 per Unit to raise gross proceeds of up to 500,000, announced April 2, 2013.
Although the company has had reasonable interest in this private placement, the current challenging capital market situation for mineral exploration companies has resulted in the board of directors of Mammoth recognizing that the previous pricing of this financing may not be applicable in this market. As a result the private placement has been re-priced to include up to 7,000,000 units of the company (the “Units”) at a price of 0.07 per Unit to raise gross proceeds of up to 490,000. Each Unit will be comprised of one common share of the Company and one common share purchase warrant (a “Warrant”). 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 0.12 per common share.
The company may pay a finder’s fee on all or a portion of the private placement. The company intends to use the proceeds from the private placement for exploration expenditures on its Tenoriba property located in the Sierra Madre Precious Metal Belt in southwestern Chihuahua State, Mexico (refer to the company’s web site www.mammothresources.ca, for a detailed location map) and for general working capital purposes. On May 22, 2013 the company announced results from its fourth exploration campaign at Tenoriba Surface rock samples taken during the company’s most recent exploration campaign where surface mapping and sampling continue to return encouraging, highly anomalous channel samples and the occasional grab sample which in many instances assay in excess of 10 grams per tonne (gpt) gold and 50 gpt silver over a large 15 square kilometre area, including the following highlight sample results.
Carneritos Area:
—26.10 gpt gold and 121.0 gpt silver in a grab sample;
—6.41 gpt gold and 34.0 gpt silver over a 1.0 metre channel sample; and
—5.48 gpt gold and 34.3 gpt silver over a 1.0 metre channel sample.
El Moreno Area:
—13.00 gpt gold and 17.1 gpt silver over a 1.0 metre channel sample;
—12.95 gpt gold and 7.1 gpt silver over a 1.0 metre channel sample;
—9.79 gpt gold and 6.8 gpt silver over a 1.0 metre channel sample; and
—9.19 gpt gold and 8.9 gpt silver over a 1.5 metre channel sample.
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.
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.
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.
