- Peloton Minerals (PMC) has reached an agreement to acquire Westmount Resources LLC through its subsidiary, Celerity Mineral Corporation
- Westmount holds a 100 per cent interest in the Boulder Porphyry Property
- The Boulder property is known to contain a large copper-molybdenum porphyry system
- Westmount shareholders will receive 50 per cent of Celebrity’s shares and a promissory note in the amount of US $600,000
- Peloton now holds interests in two Montana projects
- Peloton is a mineral exploration company
- Peloton Minerals Corporation (PMC) opened trading at C$0.11 per share
Peloton Minerals (PMC) has reached an agreement to acquire Westmount Resources LLC through its subsidiary, Celerity Mineral Corporation.
Westmount holds a 100 per cent interest in 331 unpatented mineral claims called the Boulder Porphyry Property located near Butte, Montana.
The shareholders of Westmount will be issued 50 per cent of the issued and outstanding shares of Celerity in exchange for their Westmount Shares in this arms length transaction.
The Boulder Porphyry Property is located approximately 16 miles north-northeast of Butte, Montana.
The Boulder property is known to contain a large copper-molybdenum porphyry system within the Boulder Batholith and coeval Elkhorn Mountains Volcanics which is overlain by 300 to 2,100 feet of post-mineral Lowland Creek Volcanics. As a result, the porphyry system on the Boulder Property is not well exposed.
Under the agreement, in addition to receiving 50 per cent of the issued and outstanding Celerity Shares, Westmount shareholders will also receive a promissory note in the amount of US $600,000 to be paid within one year, and a 1 per cent net smelter return royalty that may be bought down prior to commercial production by one-half for US$5 million.
Peloton plans to have Celerity self-fund its operations and seek to become its own publicly-traded company in a series of financings and transactions.
Peloton shareholders will receive Celerity shares at no cost as a dividend in kind and be given the opportunity to participate in Celerity financings by way of a rights offering or other private placements.
The proceeds will be used to pay out the promissory note, complete geophysical fieldwork, initiate the drill permitting process and seek a Celerity listing on a Canadian Exchange.
President and CEO Edward (Ted) Ellwood commented on the acquisition.
“We have had our eye on this project for over ten years and are thrilled that it is coming to us. It is an exciting exploration target with tremendous upside potential and fits extremely well with the potential of our Nevada Carlin style gold projects which we also continue to advance and remain excited about. As for the financing and structural strategy, we feel this is the best approach toward financing the project adequately while minimizing Peloton dilution. Any percentage of another Butte would be significant.”
Peloton now holds interests in two Montana projects (the Boulder Property and the SBSL epithermal gold exploration project which is under option to Frederick Private Equity and African Metals) as well as three Carlin-style gold exploration projects in Elko County, Nevada.
Peloton Minerals Corporation (PMC) opened trading at C$0.11 per share.