Brookmount Gold Announces Buyout of Joint Venture Partner and Associated Terms

Rhea-AI Summary

Brookmount Gold (OTC Pink: BMXI) has announced the complete acquisition of its joint venture in Talawaan, gaining 100% ownership and control. CEO Nils Ollquist stated that the agreement allows full management control over the Talawaan operation, including its cash flows, while maintaining a 25% royalty payment to their partners on net earnings. This acquisition empowers Brookmount Gold to explore and exploit the 50-hectare property, with plans to prove reserves and boost production. Chief Geologist Errin Kimball's expertise will be leveraged to optimize reserves and future gold exploitation. More details about the acquisition terms will be available on the company's website.

Positive

• Brookmount Gold acquires 100% ownership and control of Talawaan operations.
• Full management control over Talawaan operation, including cash flows.
• Plans to prove-up reserves and increase gold production.
• Right to explore and exploit the 50-hectare property.

Negative

• 25% royalty payment on net earnings to partners.

Reno, Nevada--(Newsfile Corp. - July 2, 2024) - The Board of Directors of Brookmount Gold (OTC Pink: BMXI) is pleased to announce that a definitive agreement for the acquisition of 100% ownership and control of The Company's operations in Talawaan has now been signed. "This is a significant milestone for Brookmount Gold and lays the groundwork for our future," commented CEO Nils Ollquist. "Whilst the agreement will facilitate full management control of the Talawaan operation by the Company, including the cash generated therefrom, the Company will continue to maintain a close and effective relationship with our long-term partners, including payment of a 25% royalty on net earnings generated by the operation."

Mr. Ollquist continued: "From here, we will utilize our industry expertise and the experience of Chief Geologist Errin Kimball to "prove-up" reserves and increase production. With operational control, we now have the right to explore and exploit the 50-hectare property, including implementing a drilling program to carry the balance of provable reserves on our financial statements, while also guiding future gold exploitation."

Further details on the terms of the Acquisition will be uploaded onto the Company's website shortly.

Brookmount Gold Investor Relations Contact:
FastPitch IR
brookmountgold@fastpitchir.com
(312) 999-0187
Brookmount Gold Website: https://brookmountgold.com
Brookmount Gold X Profile: https://x.com/brookmountgold

Safe Harbor Statements: Except for the historical information contained herein, certain of the matters discussed in this communication constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "could," "anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "seek to," "plan," "assume," "believe," "target," "forecast," "goal," "objective," "continue" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding benefits of the proposed license, expected synergies, anticipated future financial and operating performance and results, including estimates of growth. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstance that could give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Brookmount's common stock. All such factors are difficult to predict and are beyond our control. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulations.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215205

FAQ

What recent acquisition did Brookmount Gold (BMXI) announce?

Brookmount Gold announced the acquisition of 100% ownership and control of its Talawaan operations.

How will the acquisition impact Brookmount Gold's control over Talawaan?

The acquisition grants Brookmount Gold full management control over the Talawaan operation, including its cash flows.

What is the royalty agreement for Brookmount Gold's Talawaan operations?

Brookmount Gold will pay a 25% royalty on net earnings generated by the Talawaan operation to its partners.

What are Brookmount Gold's plans for the Talawaan property?

Brookmount Gold plans to explore, exploit, and prove-up reserves on the 50-hectare Talawaan property, increasing gold production.

When was Brookmount Gold's acquisition of the Talawaan operation announced?

The acquisition was announced on July 2, 2024.