DESERT MOUNTAIN ENERGY OPTIONS 23,000 ACRES OF ADDITIONAL HELIUM LEASES IN ARIZONA’S HOLBROOK BASIN
Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it has optioned approximately 23,000 additional acres of helium, oil & gas leases in the prolific Holbrook Basin of eastern Arizona. This brings the Company’s total acreage under its control in the Basin to 65,911 acres. The leases were optioned for a period of three years directly from private family-owned corporations that have owned the underlying land for decades (the “Lessors”).
Upon exercise of the options, the Company will obtain a five-year lease covering development and production of helium, oil & gas and all other minerals from the ground optioned. The term of the leases will be extended so long as there is production from them, insofar as they are held by production. A customary 12.5% gross royalty on all production of helium, oil & gas is payable to the Lessors.
The optioned ground is situated in and around the Company’s Heliopolis project area in close proximity to its other holdings in the Holbrook Basin. It complements the Company’s existing leases and serves to further consolidate the Company’s property position in the area. The optioned ground is highly prospective for helium and is characterized by the presence of anticlinal features, domes and other structures which have the potential to serve as traps for commercially significant helium reservoirs. An historic oil well drilled on the optioned ground had a showing of helium.
The Company continues to be focused on development of its flagship Heliopolis helium project in Arizona’s Holbrook Basin and is presently in the permitting process for its upcoming drill program. That program contemplates drilling three shallow wells in different priority target areas in the Basin. At the same time, the Company is also preparing a drill program at its Kight-Gilcrease Sand Unit helium, oil & gas project in Seminole County, Oklahoma.
According to Irwin Olian, CEO of the Company, “We are very grateful for the family’s choice of Desert Mountain Energy as its partner to explore and develop helium and other mineral resources from its large property package in the Holbrook Basin. We are committed to creating a success for all the parties concerned that has economic benefits for the local communities and counties and the State of Arizona, with minimal environmental footprint.”
About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO
For more information, contact:
Irwin Olian
President and CEO
E-mail: [email protected]
Tel: +1-604-788-0300
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.