Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to announce that it has sold its placer mining tenures in the Atlin, B.C. mining camp to Altan Mining Ltd., of Delta, B.C. (“Altan”). The tenures sold were comprised of Placer Lease 361733, Placer Claim 350665 and Placer Claim 379882 (collectively, the “Placer Interest”) covering an aggregate of approximately 466.15 hectares at the Yellowjacket Gold Project in the Pine Creek Area, 9 km E of Atlin.
Altan is controlled by Mr. Matt Norris, who has been exploring and mining portions of the Placer Interest for the past two seasons under a lease arrangement with the Company. Management of the Company has concluded that it is in the best interests of the Company and its shareholders to divest the Placer Interest at this time, as placer mining is not a business objective of the Company. Altan is paying the Company $75,000 in cash for the Placer Interest and reimbursing the Company for the 2018 lease fees paid by the Company in respect of Placer Lease 361733. The Company retains full ownership and control of the Yellowjacket Gold Mine and related hard-rock tenures.
The Company and Mr. Norris have had a very positive working relationship over the past two seasons and are committed to a cooperative relationship that includes information sharing. In recognition of the Company’s paramount rights to the Yellowjacket Gold Mine and related hard-rock tenures, Altan’s activities are subject to certain reasonable restrictions and the Company retains an absolute right of pre-emption if necessary to avoid conflict with the Company’s exploration, development and/or mining activities on site.
According to Irwin Olian, CEO of the Company, “Divestment of the Atlin placer tenures is a further step in the new direction being pursued by the Company as reflected in its acquisition of the Heliopolis helium project in Arizona’s Holbrook Basin the Kight Gilcrease Sand Unit Oil Field in Oklahoma. We will continue to hold the Yellowjacket Gold Mine as a portfolio asset while attempting to realize value from it in the future for the benefit of our shareholders.”
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. In addition, the Company owns the Yellowjacket Gold Project in Atlin, British Columbia, which it has recently 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.
Chairman & CEO
For more information, contact:
President and CEO
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443
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.