(TheNewswire)
February 8, 2024 -Vancouver, B.C., Canada; BelmontResources Ltd. (“Belmont” or the “Company”) (TSX.V: BEA; FSE:L3L2) is pleased to announce that it has entered into a ConvertibleLoan Agreement for $368,000 Cdn. with HMS Bergbau AG, Berlin Germany(“HMS”).
The HMS investment follows a previous $420,000 Cdninvestment from two European private investment holding companies( see NR Oct. 19, 2023 ).
HMS is non-arm’s length to the Company as PatrickBrandl, a director of Belmont, is also on the Supervisory Board ofHMS. As such, this transaction constitutes a “related partytransaction” as defined under Multilateral Instrument 61-101Protection of Minority Security Holders in Special Transactions (“MI61-101”). Such participation is exempt from the formal valuationand minority shareholder approval requirements of MI 61-101 as neitherthe fair market value of the Convertible Loan by the insider exceed25% of the Company’s market capitalization.
The Loan shall bear no interest and payable on orbefore July 1, 2024. If Belmont fails to repay the Loan in full onor before July 1, 2024, interest on arrears of 12% p.a. will bepayable by Belmont beginning July 2, 2024.
HMS has the option to have the Debt paid through theissuance of 9,200,000 common shares, at a deemed value of $0.04 pershare, subject to the approval of the TSX Venture Exchange.
The Use of Proceeds will be allocated as: $210,000exploration and incurred exploration expenditures; $60,000 office andadministration (salaries, management, audit & legal); unallocatedworking capital $98,000. While the Company intends to spend the netproceeds from the loan as stated above, there may be circumstanceswhere, for sound business reasons, funds may be reallocated at thediscretion of the Board.
The closing of the transaction is subject to theapproval of the TSX Venture Exchange.
George Sookochoff, President &CEO commented “We're thrilled to collaboratewith a multinational corporation like HMS Bergbau AG as they ventureinto commodity production, broadening their scope. Their investmentserves as a vote of confidence in our team, our initiatives, and ouroutlook.”
About HMS Bergbau AG
HMS Bergbau AG (HMS) stands out as a prominentindependent commodity trading enterprise based in Germany. Its primaryfocus lies in the global procurement and distribution of energycommodities, metals, ores, and various renewable resources.
The company's global presence is further underscored byits subsidiaries, including HMS Bergbau Africa (Pty) Ltd., HMS BergbauSingapore Pte Ltd., PT. HMS Bergbau Indonesia, HMS Bergbau Dubai FZCO,and HMS Bergbau USA Corp.
HMS is increasingly developing into a diversifiedinternational commodity trading group and is actively expandingtowards commodity production and logistical solutions.
In July 2023 HMS announced the acquisition of twomajority shareholdings in Kazakhstan-based companies with mining andexploration licenses for lithium, cobalt, nickel, tantalum and rareearths in the Alatau region of Kazakhstan.Investment is expected to amount to $500 million in East Kazakhstan.Kazakhstan has an estimated 8.6 million tonnes of lithium resources,making it the fifth-largest holder of lithium reserves in the world,according to the United States Geological Survey.
Dennes Schwindt, CEO of HMS BergbauAG stated “We also see the new majorityshareholdings in Kazakhstan as another milestone in the transformationprocess of HMS Bergbau AG, which is transforming into aninternationally positioned raw materials trading and marketinggroup.”
HMS Bergbau AG (HMS) is listed on the Basic Board ofthe Frankfurt Stock Exchange. (HMU.DE)
About Belmont Resources
Belmont Resources has assembled a portfolio of highlyprospective uranium, gold, copper, lithium and rare earths projectssituated in North America. Its holdings include:
-
Crackingstone Uranium:
Situated in the Uranium City area of northernSaskatchewan where sixteen uranium deposits were brought intoproduction. Crackingstone has a rich history of high grade uraniumsampling.
- 11 tons were shipped to the Lorado mill grading2.3% U3O8.
- Rix Athabasca Uranium Mines Ltd. reported a grabassay of 12.53% U308
- 46 ton hand sorted bulk sample assaying 0.5%U308.
- 6.5 ton hand sorted bulk sample assaying 0.5%U308.
-
Crackingstone Rare Earths:
Some of the highest grade Rare Earth Elements (REE’s)are being discovered nearby Crackingstone in Northern Saskatchewanwithin coincident Thorium & Pegmatite anomalies. Crackingstonealong with its high grade uranium, has similar criteria for Rare Earthdiscoveries (Thorium & Pegmatite anomalies) which will beaggressively explored for in Q2 2024.
-
Athelstan-Jackpot (A-J) Gold: 2 former gold mines produced 7,600 ozs Au 9,000oz Ag.
2023 drilling targeted a potential feeder system to 2former gold mines. Initial results provide important vectors pointingfurther east to the major Jackpot fault which may have provided theconduit for hydrothermal mineralization to flow to surface.
-
Come By Chance (CBC) Copper-Gold: 2021 geophysics delineated potential largecopper-gold porphyry ; 2022 drilling provided further vectors towardspotential core of porphyry;
-
The LoneStar Copper-Gold: optioned to Australian Marquee Resources ASX:MQR. MQR hasspent in excess of $2.5M in drilling, In November 2023 MQR announced aPreliminary Economic Assessment and currently holds a 50% interest inthe project.
-
The Kibby BasinLithium: Situated 60 kilometers north of thelithium rich Clayton Valley Basin in Nevada. Belmont has optioned 80%of the central Kibby Playa claim block to Australian Marquee Resources- MQR. MQR has spent in excess of $3.0M in drilling in 2022 forpotential deep seated lithium brine. Where water is precious Belmontholds 2 water licenses for the Kibby Basin.
NI 43-101 Disclosure:
The technical information in this news release has beenprepared in accordance with Canadian regulatory requirements as setout in National Instrument 43-101 and has been reviewed and approvedby Laurence Sookochoff, P.Eng.
ON BEHALF OF THE BOARD OF DIRECTORS
“GeorgeSookochoff”
George Sookochoff, CEO/President/Chairman
Neither the TSX Venture Exchange nor its RegulationServices Provider (as the term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this news release.
This Press Release may contain forward-lookingstatements that may involve a number of risks and uncertainties, basedon assumptions and judgments of management regarding future events orresults that may prove to be inaccurate as a result of exploration andother risk factors beyond its control. Actual events or resultscould differ materially from the Companies forward-looking statementsand expectations. These risks and uncertainties include, among otherthings, that we may not be able to obtain regulatory approval; that wemay not be able to raise funds required, that conditions to closingmay not be fulfilled and we may not be able to organize and carry outan exploration program in 2023, and other risks associated with beinga mineral exploration and development company. These forward-lookingstatements are made as of the date of this news release and, except asrequired by applicable laws, the Company assumes no obligation toupdate these forward-looking statements, or to update the reasons whyactual results differed from those projected in the forward-lookingstatements.
Copyright (c) 2024 TheNewswire - All rights reserved.