Vancouver, B.C. Canada, May 29, 2017 - Belmont Resources Inc. (TSX.V: BEA; FSE: L3L1; DTC Eligible - CUSIP 080499403); (“Belmont”, or the “Company").
Kibby Basin - 1st Phase Drilling completed with additional depth in Hole #2 drilled
Further to our news release of May 9, 2017 the Company is pleased to report that Harris Exploration Drilling & Associates (“Harris Drilling”) completed the 1st Phase HQ (3.875”) core drilling program commencing Hole #1 on April 23, 2017. Hole KB-1c was drilled to a depth of 548 feet on the eastern basin-bounding fault, and Hole KB-2c was drilled to a depth of 1498 feet in the playa, about 5000 feet southwest of Hole KB-1c.
Hole KB-1c targeted the approximate location of the basin-bounding fault as defined by a gravity survey, and was drilled east of the playa (dry lake bed). The hole encountered unconsolidated alluvial sand and gravel deposits with minor occurences of silt, clay, and water courses.
Hole KB#2, was advanced in the playa area and encountered fine-grained clay-rich sediments: silts and muds punctuated by thin gravel intervals and some thicker fine-grained sand zones typical of playa lake sediments. Layers containing ground water were encountered at numerous depths., Core has been logged, photographed, and sampled at Belmont’s field office facility in Mina- NV. Samples of clay-rich core intervals were transported to ALS Labs in Sparks, NV for analysis. Results of assays are expected by mid -June. Hydro sleeve samples of formation water were collected from the bottoms of both drill holes, where brine is likely to collect, and were also delivered to ALS for lithium analysis and testing of physical parameters. Core sample assay results will determine whether the sediments could be a potential source of lithium for the underlying aquifers.
Existing reports describing the geological history of the area and analysis of surrounding bedrock, volcanic ash, and surface sediment testing have indicated a potential for lithium in the basin.
Belmont’s next stage of evaluation will consist of studying the assay and water test results to confirm the presence of Lithium, carrying out geophysical surveys (Electromagnetic Resistivity survey-‘EM’ and possibly seismic surveys) of the property, which should generate higher aquifer probability targets for further drilling.
NI 43-101 Disclosure
Robert (“Bob”) G. Cuffney, Certified Professional Geologist, a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical information in this news release.
Private Placement Financing
The Company is arranging a non-brokered private placement of up to 4,000,000 units (the “Units”) at a price of $0.05 per Unit to raise gross proceeds of up to $200,000. Each Unit will consist of one common share of the Company and one transferable share purchase warrant (a “Warrant”).Â Each whole warrant will permit the holder to acquire one additional share of the Company at a price of $0.08 in the first year and at $0.10 in the second year after closing.
In addition to relying upon other available prospectus exemptions to effect the private placement, a portion of the private placement is being completed in accordance with the exemption set out in BC Instrument 45-536 (Exemption from prospectus requirement for certain distributions through an investment dealer), (the “Investment Dealer Exemption”). The Company also confirms there is no material fact or material change related to the Company which has not been generally disclosed.
The Company will pay finder’s fees of up to 10% in cash and/or warrants. The Common Shares and Warrants are subject to a statutory hold period and the financing is subject to Exchange acceptance.
The Company intends to use the net proceeds from the private placement for continued exploration on the Kibby Basin, Nevada property and general working capital.
The working capital use of proceeds comprises the following (maximum/minimum for the next six months of estimated operating expenditures): Consulting fees $15,000/$10,000; Legal and audit $10,000/$10,000; Rent, Office & Miscellaneous $15,000/$11,000; Regulatory Fees $7,000/$5,000; Salaries & Admin. $20,000/$20,000; Transfer Agent Fees $5,000/$3,500; Travel & Promotion $18,000/$15,000.
About Belmont Resources Inc.
Belmont is an emerging resource company engaged in the acquisition, exploration and development of mineral properties in Canada and Nevada, U.S.A.
On March 30, 2016; the Company acquired sixteen placer (16) mining claims, representing 1036 hectares (2,560 acres) in Esmeralda County, Nevada, U.S.A. The Kibby Basin property is located 65 km north of Clayton Valley, Nevada-U.S.A. The Company believes the property to be highly prospective to host lithium.
On July 11, 2016; the Company reported it has arranged the staking of 213 x 20 acre additional placer mineral claims totaling approx. 1724 hectares (4,260 acres), adjoining the Kibby 16, increasing the total Kibby Basin land position (the “Property”) to 2760 hectares (6,820 acres).
In 50/50 ownership with International Montoro Resources Inc., Belmont has acquired and is exploring joint venture opportunities for its two significant uranium properties (Crackingstone -982 ha & Orbit Lake - 11,109 ha) in the Uranium City District in Northern Saskatchewan, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
This Press Release may contain forward-looking statements that may involve a number of risks and uncertainties, based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control. Forward looking statements in this news release include statements about the possible raising of capital and exploration of our properties. Actual events or results could differ materially from the Companies forward-looking statements and expectations. These risks and uncertainties include, among other things, that we may not be able to obtain regulatory approval; that we may not be able to raise funds required, that conditions to closing may not be fulfilled and we may not be able to organize and carry out an exploration program in 2016; and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.