Belmont Resources Inc. Acquires Kibby Basin, Nevada Property and Arranges $350,000 Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 30, 2016) - Belmont Resources Inc. (TSX VENTURE:BEA)(FRANKFURT:L3L1)(OTC PINK:BEAAF) ("Belmont", or the "Company) is pleased to announce that it has entered into a Property Purchase Agreement (the "Agreement") to acquire a 100% interest in the Kibby Basin Property (the "Property") located 65 km north of Clayton Valley, Nevada-U.S.A. The Company believes the property to be highly prospective to host lithium.
Kibby Basin Property:
The Kibby Basin Property consists of thirteen (13) placer claims, totaling approximately 1036 hectares (2,560 acres) in Esmeralda County, Nevada, halfway between Las Vegas and Reno.
Geologic research of the Kibby Basin has indicated that proximal rhyolitic flows and tuffs surrounding the basin could be a potential source for the possibility of saturated Li brine in the Kibby Basis Playa. In addition to this, the Kibby Playa is located within a geothermal cluster, at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies comparative to that of the Clayton Valley, where Pure Energy Minerals has defined the largest Lithium (Li) Carbonate Equivalent (LCE) NI 43-101 Resource in the Clayton Valley, next to the only producing lithium mine (Albemarle's Silver Peak Mine) in North America.
Nevada enjoys unmatched infrastructure, consistent permitting protocols, a social license to operate and a safe operating environment. Nevada is home to Tesla's $5 billion lithium-ion battery Gigafactory currently under construction, as well as the soon to be built Faraday Future $1 billion electric car plant.
The Company anticipates conducting an exploration program of detailed geologic and geophysical mapping, along with surface sampling within the current exploration season.
NI 43-101 Disclosure:
James A. Briscoe, P. Geo., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information in this news release.
Further information on the Property can be reviewed on the Company's website Project page at www.BelmontResources.com
Acquisition Terms:
In consideration for a 100% interest in the Kibby Basin Property, the Company has entered into an Agreement with Zimtu Capital Corp. ("Zimtu") (TSX VENTURE:ZC). The Company will make staged cash and share payments as follows:
- Pay to Zimtu the sum of $25,000 as follows:
- $5,000 upon sign of the Agreement (paid);
- $20,000 upon regulatory approval of the Agreement.
- Issue 1,000,000 common shares of Belmont to Zimtu as follows:
- 500,000 common shares upon regulatory approval; and
- 500,000 common shares at six months from regulatory approval.
The Agreement is subject to a 1.5% NSR of which the Company has the right to purchase half (50%) from Zimtu, at any time for $1,000,000.
The transaction is subject to acceptance by the TSX Venture Exchange (the "Exchange") and the common shares are subject to a statutory hold period from the issuance date.
Financing:
The Company also announces that it is arranging a non-brokered private placement of up to 7,000,000 units (the "Units) at a price of $0.05 per Unit to raise gross proceeds of up to $350,000. Each Unit will consist of one common share of the Company and one transferable share purchase warrant (a "Warrant"). Each whole warrant will permit the holder to acquire one additional share of the Company at a price of $0.10 in the first year and at $0.15 in the second year after closing.
The Company will pay a finder's fee of up to 10% in cash or warrants. The Common Shares and Warrants are subject to a statutory hold period and the financing is subject to Exchange acceptance.
The Company intends to use the net proceeds from the Private Placement for exploration on the Kibby Basin Property and general working capital.
Investor Relations:
The Company has engaged 360 Aviation Services Inc. ("360") of Vancouver, B.C. to conduct investor relations on behalf of the Company for a six month contract.
360 shall provide the following Services:
- Introduce and liaise on behalf of Belmont with writers and publishers of relevant subscriber based publications, including newspapers, magazines - both mining, business and financial;
- Advise Belmont with respect to its public communication materials, including Belmont's website and presentations developed for industry meetings, conferences and tradeshows;
- Meet and Communicate with corporate analysts, institutional and professional investors, retail clients and stockbrokers for the purpose of encouraging or promoting investment in Belmont;
- Such other services as Belmont and 360 may from time to time agree upon.
Compensation to 360 will be Cdn. $2,500 + GST per month for the first six months and increased to $3,500 per month upon a negotiated renewal. 360 will also be granted an option to purchase 150,000 common shares, exercisable at the price of $0.05 per share for three years. The stock option granted will be in accordance with the Company's Stock Option Plan, will have the required four (4) months hold period, and will have vesting provisions attached.
Ms. Pamela A. Smith-Gander, the principal of 360, reports that 360 do not own any common shares of the Company at this time.
The above-mentioned transaction is subject to the approval of the regulatory authorities.
ON BEHALF OF THE BOARD OF DIRECTORS
Gary Musil, CFO/Director
This Press Release may contain forward-looking statements that may involve a number of risks and uncertainties, based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control. Forward looking statements in this news release include statements about the possible raising of capital and exploration of our properties. Actual events or results could differ materially from the Companies forward-looking statements and expectations. These risks and uncertainties include, among other things, that we may not be able to obtain regulatory approval; that we may not be able to raise funds required, that conditions to closing may not be fulfilled and we may not be able to organize and carry out an exploration program in 2016; and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contact
Belmont Resources Inc.
(604) 683-6648
(604) 683-1350
belmontr@telus.net
www.BelmontResources.com
