April 18, 2012
/PRNewswire/ -- Thunder Mountain Gold, Inc. (the Company) (TSX-V: THM; OTCQB: THMG), is pleased to announce that it entered into a Letter of Intent (LOI) with a
based private equity group to advance the Company`s South Mountain Mine toward production. The private equity group can earn up to 75% participating interest in the project with an investment of
eighteen million dollars
Terms of the LOI agreement include a buy in payment of
one million dollars
, paid to the Company upon execution of the agreement, a work commitment of
two million dollars
the first two years, and
fifteen million dollars
committed to be spent into the project in the following two years under a plan to move the project through feasibility and into production.
"This agreement is an example of the Company's focus to enter into creative deals that lower the Company`s risk, while maintaining the upside exposure to gold, silver and other metal production, with no dilution to Thunder Mountain Gold shareholders", commented
, President and CEO of Thunder Mountain Gold. As noted, all expenditures related to the development of the projected underground mine are being paid by Thunder Mountain's joint venture partner, with a total expected development budget of USD
The project will be managed by a joint management committee assembled by both companies. Work is due to start on the project at the end of May, 2012, with plans for additional drilling, and re-modeling the 9 mineralized zones to aid in the development of this valuable resource. It is envisioned that the project will be a 500 to 1,000 ton per day operation when in production.