|Boise, Idaho — November 28, 2016 – Thunder Mountain Gold, Inc. (TSX-V: THM; OTCQB: THMG) (the Company), is pleased to announce that on November 9, 2016, Judge Jason Scott, Fourth Judicial District, State of Idaho, issued a final Judgment dismissing with prejudice all claims and causes of action that were or might have been asserted in Idaho State Gold Company II (“ISGC II”), LLC vs. South Mountain Mines, Inc. (“SMMI”), Thunder Mountain Gold’s wholly-owned subsidiary, pursuant to a negotiated settlement between the Company and the plaintiff.
This final Judgment dismissed the contractual claims and any related claims filed by ISGC II against SMMI regarding the Owyhee Gold Territory LLC (OGT). OGT was the entity created to operate the Company’s South Mountain Project pursuant to an Operating Agreement (Agreement) as reported by the Company in November 2012. This final judgment also dismissed SMMI’s counterclaims against ISGC II. Terms of the Settlement Agreement are as follows: (i) SMMI will manage and retain 75% ownership in the OGT, with ISGC II retaining 25% ownership but no management control; (ii) OGT will be managed by SMMI under a new operating agreement signed by both parties, and will exist as a holding company, with the real property assets (and certain delineated personal property) taken out and advanced by SMMI under a standard Mining Lease with Option to Purchase Agreement; (iii) OGT will retain a capped five-million dollar ($5,000,000) Net Returns Royalty, paid quarterly at 5% of the net profits of the project when it begins producing, which is credited to ISGC II; (iv) and a $5,000 per year lease payment due to OGT. The lease purchase option is triggered, and ISGC II’s 25% interest in OGT terminates upon the payment of $5,000,000 to OGT.
Eric Jones, Thunder Mountain CEO and President commented; “The Settlement is a fair and reasonable resolution for Thunder Mountain Gold and its shareowners, and allows the Company to move the South Mountain Project forward. We are pleased that we can now focus on obtaining new capital to advance the Project through feasibility studies and into production if warranted, without the burden of litigation wrongfully and incorrectly impeding such activities.”
Regarding Thunder Mountain Gold, Inc.
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For further information, please contact:
Eric Jones, President and C.E.O.
Jim Collord, Vice President and C.O.O.