ASX RELEASE
[Perth, 17 May 2013] Montezuma Mining Company Limited (ASX: MZM) announces that it has reached agreement with Grosvenor Gold Pty Ltd (Grosvenor), Resource and Investment NL’s wholly owned subsidiary (RNI) to extend to 29 November 2013 its option to acquire 100% of Peak Hills Metals Pty Ltd, which owns the Peak Hill gold project.
Grosvenor will pay Montezuma Mining a $50,000 extension fee and has agreed to reduce the exercise price of the consideration options payable to Montezuma upon exercise of the option from $0.75 to $0.35 per option. All other terms are the same as those announced on 27 September 2012.
The combined cash and share structure of this deal will not only provide an upfront return for Montezuma Mining, but also allow the Company to maintain its exposure to future upside as RNI realises its ambitions to recommence gold production in the region.
Commenting on the Peak Hill acquisition option extension, Montezuma Mining Chief Executive Officer, Michael Moore, said that the extension of the option exercise date is a positive development that has resulted in a lower option exercise in RNI.
“The divestment of the Peak Hill gold project is consistent with Montezuma Mining’s new growth strategy that seeks to leverage Montezuma’s strong financial position to build a diversified resource asset base. We believe that current market conditions will lead to low risk opportunities arising, including assets that will deliver near term production.
“The additional capital provided from the disposal of the Peak Hill asset will support Montezuma Mining’s development of its 100 per cent owned Butcherbird manganese and copper projects,” added Mr Moore.
-ENDS-
FOR MORE INFORMATION
Mike Moore
Chief Executive Officer
Phone: +61-8 6315 1400
Email: mmoore@montezuma.com.au
Ronn Bechler
Investor Relations, Market Eye
Phone: +61-400 009 774
Email: ronn.bechler@marketeye.com.au
Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company’s projects can be viewed at
www.montezumamining.com.au.31 Ventnor Avenue WEST PERTH WA 6005
T:+61-8 6315 1400
F:+61-8 9486 7093
E: info@montezumamining.com.au