Mammoth Signs Surface Rights Agreements, Permitting Drilling at Its Tenoriba Property, Mexico
TORONTO, ONTARIO--(Marketwired - Jul 25, 2014) - Mammoth Resources Corp. (TSX VENTURE:MTH) would like to announce that it has signed surface rights agreements that will permit drilling on its Tenoriba precious metal property (refer to press release dated April 24, 2014), in the prolific Sierra Madre Precious metal belt, Mexico. The agreements are with two ejidos (an ejido is a communal municipal governance committee which has stewardship over surface land usage); the Baborigame ejido and the Santa Rosa ejido, boundaries of which each cover a portion of the Tenoriba property. In the case of the Santa Rosa ejido and Baborigame, respectively and are renewable on equal terms for periods to be determined, by votes in favour of such extension and terms of extension, at the time of such votes. In the case of Santa Rosa ejido, the surface right agreement was originally signed on April 13, 2014 and is for a term of three years, requires payment of Mexican Peso (MN $) 10,000 (approximately US$800) every six months and is renewable for a second three year period with the same general terms, subject to a new ejido assembly vote and can be cancelled at Mammoth's convenience. In the case of the Baborigame ejido, the surface right agreement was signed on July 20, 2014 and is presently in the process of being notarized. The agreement is for a term of two years, requires payment of MN $15,000 (approximately US$1,200) every six months and is renewable for an additional year period with the same general terms, subject to a new ejido assembly vote and can be cancelled at Mammoth's convenience. The difference in amounts to each ejido is on the basis of the amount of ejido property existing on the Tenoriba property and population of each ejido community.
The next steps in the process of advancing the company's application for permission to drill the Tenoriba project now only involves notarization of certain documents associated with the ejido agreements (expected shortly), the company filing an application to drill and perform various surface works (roads and drill pads), and the company receiving approval for such activities by the Secretaria de Medio Ambiente y Recursos Naturales (SEMARNAT - the Mexican ministry responsible for reviewing and granting such permit applications) and most importantly, the company paying permit application filing fees and fees to the contract consultant associated with the preparation and submission of the permit application. Payment of these fees are pending receipt of funds from the CDN $325,000 financing announced August 16, 2014.
Based on consultations with representatives of the SEMARNAT office in Chihuahua, the company anticipates that it will receive its drill permit within four to six weeks following the submission of its permit application. The timing for the receipt of the permit is anticipated to coincide with the tapering of heavy rains in the Sierra Madre where the project is located in time to permit drilling later in the year. The company has received numerous highly competitive quotations from drilling companies for its proposed drill program.
About Mammoth Resources:
Mammoth Resources (TSX VENTURE:MTH) 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.
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