HuntMountain Resources Signs LoI To Sell Argentine Subsidiary Cerro Cazador To Sinomar Capital In Reverse Takeover Transaction - Quick Facts

(RTTNews) - Wednesday, HuntMountain Resources Ltd. (HNTM.OB: News ) signed a Letter of Intent or LOI with Sinomar Capital Corp. (SMM-P.V), a Canadian Capital Pool Corporation. Following the LOI Sinomar will acquire 100% of the shares of HuntMountain's Argentine subsidiary, Cerro Cazador S.A. in a Reverse Takeover Transaction. The LOI contemplates the issuance of 29.1 million common shares and 20.9 milion convertible preferred shares of Sinomar, all with a deemed value of C$0.30 per share. The total deemed value for the transaction is C$15 million. Upon completion of the transaction, HuntMountain will own a majority controlling interest in Sinomar.

The LOI also contemplates that Sinomar will raise, concurrently with the closing of the Acquisition a minimum of C$1.5 million and a maximum of C$3 million by way of a combination of a short form offering document and private placement at a price of C$0.30 per share.

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