Sep 26 2015
Montana Gold Mining Company Inc. has bought a diamond drilling rig for exploration of the Company's Golden Trail Project in Elko County, Nevada, or other projects, and has financed the purchase through the issuance of a US$100,000 convertible debenture to an existing European shareholder of the Company.
The drill rig purchased is the Termite Hydraulic Core Drill manufactured by Coeur Products of Idaho. From surface, it is capable of drilling to a depth of 100 meters (300 feet) and has a total weight of only 160 kg (350 pounds) that can be transported on the back of a pick-up truck. It is fully hydraulic and has a straight forward, clean design that demands few spare parts. The environmental impact of a lightweight portable drill such as this should be minimal.
The Company is presently permitted for drilling from 9 drill stations on the Golden Trail Project subject to deposit of an additional $15,000 toward the environmental disturbance bond. The 9 drill stations follow the 1,200 meter long main Golden Trail gold vein where surface sampling has returned up to 28 grams gold in grab samples and up to 13.7 grams gold with 36.2 grams silver in 5 foot continuous trench samples.
To finance the diamond drill purchase, the Company issued a US$100,000 convertible debenture bearing interest at 4% per annum payable quarterly. The principal is repayable upon 6 months' notice after August 11, 2020. The debenture is convertible into units of the Company (the "Units") priced at $0.05 per Unit. Each Unit consists of one common share and one common share purchase warrant exercisable at $0.10 until August 11, 2020. Should the Company's common shares trade at $0.20 or higher for ten consecutive trading days the debenture will automatically convert into the Units.
Edward Ellwood, MBA, President & CEO comments: "This is an excellent means to move forward in a difficult market. It does not preclude using drill contractors in the future, or for deeper work, and it will enable us to advance the project today. There is a lot of drilling to be done near surface for which this new drill is ideally suited, and we are able to better control the timing and pace of our drilling program."
Source: http://www.montanagoldmining.com/