Toronto, Canada (February 15, 2017) - Mammoth Resources Corp. (TSX-V: MTH), (the "Company") would like to announce that it has signed a contract with a Mexican drill contractor following site due diligence whereby the contractor has committed to drill at least 2,500 metres of diamond drill core on Mammoth's Tenoriba, High Sulphidation precious metal property located in the Sierra Madre region of Chihuahua State, Mexico with from 30 to 60 percent of the cost of the contract to be paid for in common shares of Mammoth, subject to TSX approval. The Company would also like to announce that the contractor has subscribed for the Company's recently announce Private Placement of a Unit consisting of one common share and one common share purchase warrant with each warrant exercisable for a period of 18 months following closing of the private placement, at an exercise price of $0.12.
Thomas Atkins, President and CEO of Mammoth commented on this agreement and investment stating: "The Company has built a strong relationship with this drill contractor and the senior executive of this contracting firm, himself having studied and worked as a geologist, upon seeing the potential of the Tenoriba property was keen to consider a structure whereby his firm could assist us in the challenge of raising capital for drilling while at the same time gain some exposure to the success of the drill program and the advancement of exploration at Tenoriba. We think this can be a win-win situation and are very pleased to arrive at such an agreement. Following the field program which is expected to start shortly at Tenoriba and will include trenching and road access and pad construction to facilitate drilling, Mammoth hopes to begin an approximate 2,500 diamond drill program to test various targets on the property. As a result of this agreement with the contractor the Company will be required to raise far less capital in the equity market for this program. We're equally pleased that the contractor has shown confidence in the Company and the Tenoriba project by investing in the recently announced Private Placement."
About Mammoth Resources:
Mammoth Resources (TSX-V: 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.
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Forward Looking Information: This news release may contain or refer to forward-looking information. All information other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements; examples include the listing of its shares on a stock exchange and establishing mineral resources. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict that may cause actual events or results to differ materially from those discussed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be placed on these forward-looking statements due to the inherent uncertainty therein.