Thunder Mountain Gold Successfully Resolves Lawsuit With Former Partner
Boise, Idaho (FSCwire) - Thunder Mountain Gold, Inc. (TSX-V: THM; OTCQB: THMG) (the Company), is pleased to announce that on November 9, 2016, Judge Jason Scott, Fourth Judicial District, State of Idaho, issued a final Judgment dismissing with prejudice all claims and causes of action that were or might have been asserted in Idaho State Gold Company II (“ISGC II”), LLC vs. South Mountain Mines, Inc. (“SMMI”), Thunder Mountain Gold`s wholly-owned subsidiary, pursuant to a negotiated settlement between the Company and the plaintiff.
This final Judgment dismissed the contractual claims and any related claims filed by ISGC II against SMMI regarding the Owyhee Gold Territory LLC (OGT). OGT was the entity created to operate the Company’s South Mountain Project pursuant to an Operating Agreement (Agreement) as reported by the Company in November 2012. This final judgment also dismissed SMMI’s counterclaims against ISGC II. Terms of the Settlement Agreement are as follows: (i) SMMI will manage and retain 75% ownership in the OGT, with ISGC II retaining 25% ownership but no management control; (ii) OGT will be managed by SMMI under a new operating agreement signed by both parties, and will exist as a holding company, with the real property assets (and certain delineated personal property) taken out and advanced by SMMI under a standard Mining Lease with Option to Purchase Agreement; (iii) OGT will retain a capped five-million dollar ($5,000,000) Net Returns Royalty, paid quarterly at 5% of the net profits of the project when it begins producing, which is credited to ISGC II; (iv) and a $5,000 per year lease payment due to OGT. The lease purchase option is triggered, and ISGC II`s 25% interest in OGT terminates upon the payment of $5,000,000 to OGT.
Eric Jones, Thunder Mountain CEO and President commented; “The Settlement is a fair and reasonable resolution for Thunder Mountain Gold and its shareowners, and allows the Company to move the South Mountain Project forward. We are pleased that we can now focus on obtaining new capital to advance the Project through feasibility studies and into production if warranted, without the burden of litigation wrongfully and incorrectly impeding such activities.”
Regarding Thunder Mountain Gold, Inc.
Thunder Mountain Gold, a junior gold exploration company founded in 1935, owns interests in base and precious metals projects in the western U.S. The Company’s principal assets are The South Mountain Project, located on private land in southern Idaho, just north of the Nevada border, and their Trout Creek Project – a grass roots gold target in the Eureka-Battle Mountain trend of central Nevada. For more information on Thunder Mountain, please visit the Company’s website at www.Thundermountaingold.com.
U.S. Securities Act of 1933
This press release does not constitute an offer of any securities for sale or a solicitation of an offer to purchase any securities.
This press release contains forward-looking statements that are based on the beliefs of management and reflect the Company's current expectations. The forward-looking statements are based on certain assumptions, which could change materially in the future. By their nature, forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include the risk that the Company may not fully advance the South Mountain Project contemplated in this press release. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required in accordance with applicable laws.
Cautionary Note to Investors
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The United States Securities and Exchange Commission (“SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce.
For further information, please contact:
Thunder Mountain Gold Inc.
Eric Jones, President and C.E.O.
Phone: (208) 658-1037
Jim Collord, Vice President and C.O.O.
Phone: (208) 658-1037
To view this press release as a PDF file, click onto the following link:
Source: Thunder Mountain Gold Inc. (TSX Venture:THM, OTCQB:THMG)
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