Photo: Mr. Ian Graham, CEO and Director of Montan and Mr. Luis Zapata, Executive Chairman at the Mollehuaca Gold Processing Bulb (Toll Mill) Site
1.Montan Mining Corp. (TSXv: MNY) (FSE: S5GM) is a almost new aggregation focused on Peru. Can you amuse explain to our readers why you chose Peru?
Montan was accurately created to be in Peru because our administration aggregation has a clue almanac of success, acquaintance and roots there. Mr. Michel Robert, Montan Director and spearhead of our abstruse efforts was ahead Senior Vice President of Pan American Silver Corp. (TSX: PAA) during the foundation and advance years of 1995 through 2001 area he was amenable for the administration of operations in Latin America and oversaw the amplification of the aggregation in Peru, Mexico and Bolivia. Mr. Robert knows how to body and accomplish mines and mills in Peru as able-bodied as body a mining aggregation from the start. Mr. Luis Zapata, Montan’s Executive Chairman and Co-Founder is based in Peru and was aforetime Head of Latin America Institutional Disinterestedness Sales at Canaccord Genuity. Mr. Zapata brings calm banking accommodation to the aggregation as able-bodied as government, operational and association contacts.
Photo: Mr. Luis Zapata, Executive Chairman of Montan Mining Corp. at the Eladium Gold Mine
2. While the condoning transaction for Montan was the acquisition of the Alicia Copper Project the primary focus of the aggregation is the Mollehuaca Bulb in the
Peruvian arena of Arequipa. Can you amuse accord us some accommodation on that deal? What absolutely did you access and what will you have to pay?
Montan afresh entered into an acceding to access two bearing assets: the Mollehuaca Gold Processing Bulb (Toll Mill) and the Eladium Gold Mine, as able-bodied as
an analysis acreage Saulito, all amid in the Arequipa arena of southern Peru. The Mollehuaca Bulb was afresh broadcast and has both a carbon-in-pulp (CIP)
circuit as able-bodied as a abutment ambit with a total capacity of about 150 TPD. This will accomplish us the added better currently operating bulb in Peru captivated by a TSX
listed company. The assets are actuality acquired from a clandestine aggregation Goldsmith Resources SAC whom had spent added again US$4 million and four added years advancing the assets to their accepted stage. We will access the assets for US$3.3 million staged over 15 months in a aggregate of disinterestedness and cash. The accretion of an absolute permitted, operating and bearing gold ore processing adeptness saves Montan cogent capital, time and assets by eliminating the architecture and permitting action which architecture a new gold processing bulb would entail.
3. So, basically you bought / are affairs a bulb that you will use for toll-milling. What is the befalling actuality and area will the ore to be candy appear from?
Yes. The bulb processes ore from assorted small-scale formalized gold mines/miners in the arena and throughout Peru as able-bodied as from the wholly-owned Eladium Mine. I tis a acceptable allowance / allowance adequate business – affairs ore at a abatement to the spot gold price, processing through the plant, and affairs the gold or gold-in-carbon at market. The Peruvian government has been demography accomplish to ascertain the small-scale mining amplitude in country and mills so there is accretion charge for formalized mills.
In agreement of our ore purchasing strategy, Montan afresh appear a key accession to our team: Mr. Jose Luis Garcia as VP Operations Peru. Mr. Garcia was ahead the manager of minerals accretion for one of the better Peruvian assessment comminute operators (annual sales of added than US$150M) and was key to the advance of that company. Without entering into operational details, it is fair to say that minerals accretion is the best important aspect of this business, in allegory with active a bulb and its infrastructure which is basically a straightforward technical issue. The key to success is developing and advancement relationships based on affirmation and respect. Like most businesses, this is a bodies business. We are focused on accepting the appropriate people. Our mill is in a arena of aerial absorption of gold mining action and we are confident in our adeptness to antecedent ore, as able-bodied as in our accretion team.
Photo: brawl Comminute at the Mollehuaca Gold Processing Facility
4. How are you planning to accounts those ore purchases ?
Montan is about to accounts through an disinterestedness clandestine adjustment – this will be sufficient for antecedent ore purchases and the alpha of access up. I n the best term, we are attractive to body relationships with cardinal ally that will be able to provide us with low amount acclaim for ore purchases. This is ongoing – we accept been taking
parties to armpit and accepting expressions of interest.
Photo: Augment addition to the Mollehuaca Gold Processing facility
5. What are your aing steps? Are you planning to expand the mills capacity? If so, in what time anatomy and to what capacity?
Our absolute ambition is to access assembly from its accepted 30 tpd to its as built capacity of 150 tpd. As we are accomplishing that we will activate the action to advancement our permits to 350 tpd. This will accord us optionality affective forward. Operationally, our initial plan is to accomplish abiding throughput of 130 – 150 tpd of 0.8/oz Au absolute and then we will accomplish the cardinal accommodation to go to 350 tpd.
Photo: Mollehuaca Gold processing Plant
6. What affectionate of balance / cashflows does administration accept it will be able to achieve at Mollehuaca?
Cash breeze and balance is awful abased on throughput (tpd) and augment grade. Based on abiding accompaniment 140 tpd processing of 0.8oz Au absolute and d a $1150 gold price we should be able to bear on US$7M of EBIDTA per year to activate with.
7. Assuming all goes as planned and the bulb is running ng at best capacity, generating balance / chargeless cashflow – what are your plans for Montan Mining longer term?
Initially we plan to access up to 140 tpd in adjustment to show the bazaar that our aggregation is efficiently active the business. From there on we can aggrandize the absolute bulb to
350 tpd. As the aggregation becomes a cogent cash flow architect we will be able to reward our shareholders through allotment amount appreciation, aegis from dilution, potential assets or share-buy backs. We will additionally be able to abound the company further through M&A in a depressed bazaar ambiance area added accretive assets are cheap.
8. Why would, in your claimed opinion, now be a acceptable time for investors to accept a closer attending at Montan? Can you accord us some examples for how toll-milling companies in Peru accept been assuming recently?
Several reasons: our allotment anatomy is one of the best in the amplitude – with no debt, our management aggregation is experienced, capable, apprenticed and focused – a mix between
experience and adolescent energy, our appraisal is acute against aeon and we accept a clear banknote breeze focused business plan.
Comparables – TSX Listed Assessment Comminute Producers in Peru
As at June 11th 2015
(1) Added bulb in construction
As the blueprint beneath shows the Peruvian assessment millers have out-performed all added major gold advance asset classes over the aftermost 12 months – including Gold (Spot), Gold Seniors (HUI) and Gold Juniors (GDXJ).
More on Montan Mining Corp.
Montan Mining Corp. (TSXv: MNY) (FSE: S5GM) is positioned for advance in Peru through the accretion and development of advanced and/or banknote breeze mining opportunities. Montan is backed by an accomplished a nd high-energy administration team with assorted technical, bazaar and accounts adeptness and strengths and is accurate by committed and adult investors focused on architecture amount for the continued term.
Forward-Looking Statements: Certain statements in this commodity are advanced statements aural the acceptation of applicable securities laws. Such advanced statements and advice are accountable to risks, uncertainties and added factors which may cause our absolute results, achievement or achievements, or industry results, to be materially different from any approaching results, performance or achievements bidding or adumbrated by such advanced statement. Specific risks included that we may not be able to accounts our advised accretion and we may not access authoritative approval. General risks accommodate the affirmation on available abstracts and assumptions and judgments acclimated in the estimation of such data, the speculative and ambiguous attributes of exploration and development, analysis and development costs, basic requirements and the adeptness to access financing, volatility of all-around and bounded bread-and-er climates, allotment amount volatility, appraisal amount volatility, changes in disinterestedness arkets,
increases in costs, barter amount fluctuations and other risks complex in the mineral analysis and development industry. There can be no affirmation that a advanced account or advice referenced herein will prove to be accurate, as actual results and approaching contest could alter materially from those advancing in such statements or information. Also, abounding of the factors are above our control. Accordingly, readers should not abode disproportionate affirmation on forward-looking statements or
information. We undertake no obligation to reissue or amend any advanced statements or advice except as required by law.
By Björn Junker of Goldinvest.de
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