LIBERTY LAKE, WASHINGTON--(Marketwired - May 12, 2016) - Hunt Mining Corp. (the "Corporation" or "Hunt") (TSX VENTURE:HMX) is pleased to announce the closing on the purchase of the Martha Mine, located in the Santa Cruz Province, Argentina and 50 kilometres northeast of the town of Gobernador Gregores, Argentina. The Martha Mine has year round access, contains a flotation mill, equipment and buildings and commenced silver production in 2008. Additional information including photos of the Martha Mine are available on the Corporation's website at: www.huntmining.com. The Corporation's acquisition of the Martha Mine will further the transition from an exploration entity to a mining entity. Hunt has one of the largest land packages in Santa Cruz and plans to use its acquired flotation mill and infrastructure for mineral exploitation.
Hunt has been an active exploration and development entity in the Santa Cruz Province, Argentina since 2006. Since 2006, the Corporation has invested a total of CDN $40,000,000 in its Santa Cruz properties which includes the flagship La Josefina Gold/Silver Project ("La Josefina") and La Valenciana Gold/Silver Project ("La Valenciana"). Both La Josefina and La Valenciana are located within 120 kilometres of the Martha Mine.
Chairman and CEO Tim Hunt states: "We are extremely pleased with the purchase of the Martha Mine, and look forward to initiating production in 2016. The Martha Mine is a state of the art facility, with the capacity to process localized ore from regions surrounding the Martha Mine mill, which includes our La Josefina and La Valenciana projects. We look forward to working with the Argentine government and local work force for continued exploration and future mining."
The parties involved include an Argentine subsidiary of the Corporation and an Argentine subsidiary of Coeur Mining, Inc. The purchase price for the Martha mine, flotation mill, equipment and buildings is US$2.7 million plus applicable taxes.
The terms for payment were US $1.2 million, plus approximately US $400,000 in taxes paid at closing, with the balance of US $1.5 million due 365 days after the closing (the "Balance Payment"). The financing for this acquisition came from a related party with 8% interest per annum and is reviewable and renewable on a month to month basis.
The Corporation will retain an independent qualified person to prepare a technical report for the Martha mine in compliance with National Instrument 43-101-Standards of Disclosure for Mineral Projects (the "Report"), which Report is expected to be received on or about 120 days from the initial closing. A further news release will be issued by the Corporation when the Report is available, providing further details about the Martha Mine.