Three Important Milestones in Three Months
Reno, Nevada--(Newsfile Corp. - April 26, 2024) - Brookmount Gold, (OTC Pink: BMXI) a gold-producing and profitable gold mining company with production operations in Indonesia and investments in North America today announced updates to three important upcoming milestones for the Company. "We are proud of our dedicated operating team in Indonesia who has, year after year, laid the groundwork for our success," commented Brookmount Gold CEO, Nils Ollquist. "We look forward to completing our joint-venture buyout in June of this year, which will convert our Talawaan Joint Venture into a wholly owned and controlled operation of Brookmount Gold. We plan to allocate future cash-flows from Talawaan to further improving the efficiency and output of our Indonesian operations and rewarding our shareholders for their unwavering patience and support over the past several years."
Ollquist continued, "There are three important milestones to take note in the near-term for Brookmount: 1) The completion of the multi-year PCAOB audit of our financial statements, 2) The buyout of our Joint-Venture Partner at Talawaan, and 3) The Spinoff of our North American Gold assets. We'd like to provide our stakeholders with a deeper "dive" into these initiatives and give a clearer picture as to the impact on our business going forward."
Multi Year PCAOB Audit - "The importance of completing a PCAOB audit cannot be understated," commented CEO, Nils Ollquist. "In February, we contracted with a well-known and respected audit firm Hall Chadwick Group out of Sydney, Australia. Hall Chadwick has a long and illustrious history of completing audit and financial due diligence in the mining industry in both Australia, (world's 2nd largest gold producer), and internationally. The firm maintains partnerships with Accell Audit & Compliance (of Tampa, Florida) for PCAOB certification and with a well-known Jakarta (Indonesia) based audit firm, for on-site diligence and review of Indonesian operations audited by Hall Chadwick, who have a number of clients on their books (predominately Australian), with Indonesian gold operations. The audit due diligence visit to our Talawaan operation will take place for 3 days from Monday the 29th of April, with Errin Kimball, our Global Director of Operations, and myself onsite to support our local team in facilitating the auditors' understanding of our financial operations, controls, and governance. As 3 full years of operating data has been uploaded onto our cloud based "Xero" accounting platform, the audit review of our financials has already commenced and is progressing well. We continue to anticipate completion of the audit in May 2024.
A PCAOB audit is required, inter alia, for inclusion in the SEC reporting system and uplisting, to Nasdaq or similar exchange, both of which remain key priorities for management, and will be instrumental in cementing investor confidence in our financial reporting."
Talawaan Joint-Venture Buyout - "The Talawaan Joint-Venture Buyout has been in the pipeline for several years, and we are grateful that our close and enduring relationship with our partner has enabled us to reach favourable terms on the acquisition of full control by the end of June," commented Mr. Ollquist. "The buyout of the Joint-Venture will see us acquire full control of day-to-day operations, including management of workers, allocation of drill sites, gold sales and marketing, (including the development of a unique range of minted and stamped Brookmount Gold investment products in 10g, 50g and 100g denominations,) and financial and accounting systems. From completion of the buyout, cash flow generated from operations will be utilized in maintaining and improving production, particularly in testing and developing the anomalous high ore grade site recently identified on the perimeter of our property, with surplus funds allocated to development of operations in our North American properties. A portion of the surplus funds accrued by the Joint Venture in recent years and held over, will be set aside to cover a potential cash dividend to shareholders as outlined earlier in this release," Mr. Ollquist continued.
Nils Ollqust, CEO of Brookmount Gold, shakes hands with Talawaan Mine Team Member
(Photo Date: March 2024)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6707/206941_d988b76d148f0a0c_002full.jpg
North American Gold Corp Restructuring - "At Brookmount, our strategy in recent years has been clear; to build a world-class gold company. Part of this vision has been to progressively acquire the basis for a significant gold-mining presence in North America. Given that the majority of our North American properties are each at, or near, production status, we are implementing a strategy whereby these properties will be transferred into a separate listed entity, control of which will be acquired for cash. The transaction will be structured in such a way that a number of benefits will accrue to Brookmount, and most importantly, its shareholders, including a special dividend to Brookmount shareholders consisting of a portion of shares of the acquired vehicle, and direct impact on the Brookmount balance sheet through the carrying value of the balance of the investment.
We believe that this restructuring of the North American operations, in addition to the direct financial impact outlined above, will have significant benefits for the Company and its shareholders. For example, financing of the production schedule of our properties can be arranged on a non-dilutive basis through project finance structures with resource bankers and financial institutions, and the Company and all its stakeholders can benefit from the presence of two separate listed entities in portfolio."
Mr. Ollquist added, "We are currently preparing a schematic infographic for the spinoff transaction structure which we hope will clarify the benefits accruing to the Company and its stakeholders. This will be uploaded to the Company's website within the next few days."
Mr. Ollquist concluded, "We will continue to move forward with our mission of creating a world-class gold mining company. We appreciate all shareholders who have joined us on this journey and look forward to continuing to share the story with others. Our team is committed to continue working hard for all our stakeholders and invite you to join us for our upcoming investor update conference call to be announced on Brookmount Gold's X Profile shortly."
Investor Update Conference Call:
Date: May 8th, 2024
Time: 5:00 PM EDT / 4:00 PM CDT / 3:00 PM MDT / 2:00 PM PDT
Link: To be posted on our Brookmount Gold's X Profile
Investor Relations Contact:
Brookmount Explorations, Inc. (Brookmount Gold) & FastPitch IR
brookmountgold@fastpitchir.com
Brookmount Gold
Safe Harbor Statements: Except for the historical information contained herein, certain of the matters discussed in this communication constitute "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. Words such as "may," "might," "will," "should," "could," "anticipate," "estimate," "expect," "predict," "project," "future," "potential," "intend," "seek to," "plan," "assume," "believe," "target," "forecast," "goal," "objective," "continue" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding benefits of the proposed license, expected synergies, anticipated future financial and operating performance and results, including estimates of growth. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this communication. For example, the expected timing and likelihood of completion of the pending transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the pending transaction that could reduce anticipated benefits or cause the parties to abandon the transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstance that could give rise to the termination of the negotiations, the risk that the parties may not be able to satisfy the conditions to the proposed transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the proposed transaction, the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of Brookmount's common stock. All such factors are difficult to predict and are beyond our control. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this report, except as required by applicable law or regulations.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/206941
