HuntMountain Resources Ltd. (�HuntMountain�) (OTCBB:HNTM) is
delighted to announce that it entered into a Letter of Intent
(�LOI�) with Sinomar Capital Corp. (�Sinomar�) (TSX VENTURE:SMM.P),
a Canadian Capital Pool Corporation, pursuant to which Sinomar will
acquire 100% of the shares of HuntMountain�s Argentine subsidiary,
Cerro Cazador S.A. (CCSA) in a Reverse Takeover Transaction. The
transaction is intended to be Sinomar�s Qualifying Transaction as
defined in Policy 2.4 of the TSX Venture Exchange (the �TSXV�) and
is therefore subject to regulatory approval. The LOI contemplates
the issuance of 29,118,507 common shares and 20,881,493 convertible
preferred shares of Sinomar, all with a deemed value of CDN$0.30
per share. The total deemed value for the transaction is
CDN$15,000,000. 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 CDN$1,500,000 and
a maximum of CDN$3,000,000 (the "Offering") by way of a combination
of a short form offering document and private placement at a price
of CDN$0.30 per share.
It is proposed that, upon completion of the Qualifying
Transaction, a new board of directors for Sinomar will be nominated
or elected. The new board will consist of at least six directors,
four of whom are to be nominees of HuntMountain and two of whom
will be nominees of Sinomar. The nominees of Sinomar are David
Bikerman and Andrew M. Gertler. HuntMountain has nominated Tim
Hunt, Darrick Hunt, Matthew Hughes and Bryn Harman. The following
are the proposed directors and officers:
President, Chief Executive Officer and Chairman of the Board
of Directors � Tim Hunt
Tim Hunt is presently the CEO, President and Chairman of the
board of HuntMountain. Mr. Hunt is the founder and president of
Spokane, Washington-based Huntwood Industries, one of the largest
building products manufacturers in the Western United States. Mr.
Hunt has led the development of Huntwood Industries over the past
20 years � taking the business from a start-up venture to a
significant middle-market enterprise.
President and Director � Matthew Hughes
Matthew J. Hughes is a geologist with twenty years of experience
in the discovery, exploration and mining of precious metal projects
in the United States, Argentina, China, Brazil and Uzbekistan. Mr.
Hughes has been directly responsible for the discovery of numerous
precious and base metal occurrences, including the producing Mina
Martha high-grade silver lode in Santa Cruz, Argentina. Mr. Hughes
has held senior level positions with Mundoro Mining, Inc., Yamana
Resources Inc., Platero Resources Inc and Kinross Candelaria Mining
Co. Matt has also provided geological services for Silver Standard
Resources, Minas Buenaventura, NERCO Exploration and Atlas Precious
Metals. He received his Bachelor of Science degree in geology from
the University of Oregon.
Chief Financial Officer, Secretary and Director � Bryn
Harman, CFA
Mr. Harman is the Chief Financial Officer of HuntMountain. Mr.
Harman has fifteen years of experience in corporate finance and
investment roles in Canada and the United States. Mr. Harman was
the Director of Research for a national investment management firm,
a senior equity analyst for a small cap investment advisory firm, a
Listings Officer with the Alberta Stock Exchange and a corporate
finance consultant for a Calgary-based Chartered Accounting firm.
Mr. Harman is a Chartered Financial Analyst and holds a Bachelor of
Commerce degree from the University of Saskatchewan.
Director - Darrick Hunt, CPA
Darrick Hunt is a Director of HuntMountain and the Chief
Financial Officer of Huntwood Industries. Mr. Hunt holds a license
as a Certified Public Accountant under the Board of Accountancy of
Washington State and has a Bachelor�s in Business Administration
from Gonzaga University.
Director � David Bikerman
David Bikerman is a Director of Sinomar. Mr. Bikerman has worked
in the mining field for over twenty years and has experience in all
aspects of mining enterprises including exploration, operations and
management. He is the principal of Bikerman Engineering &
Technology Associates, Inc. (BETA), a private company, which since
1997 has offered services to the mining industry in financial
modeling; exploration and geologic model preparation;
geo-statistical and reserve analyses; 27 environmental plans;
project feasibility; and project design and management. Mr.
Bikerman holds two degrees in mining engineering, including
Engineer of Mines (1995) and Master of Science in mining
engineering (1985) from Columbia University. From June, 2005 to
August, 2007, he was President of Sino Silver Corp. Since July,
2006, Mr. Bikerman has been a director of Colombia Goldfields Ltd.,
a TSX listed company. Since July, 2007, Mr. Bikerman has been
President, Chief Executive Officer and a director of Megastar
Development Corp., a TSXV listed company. From August, 2006 to
July, 2007, he was President and director of East Delta Resources
Corp., an US listed company with gold and other metal projects in
China.
Director � Andrew Gertler
Andrew M. Gertler is a Director of Sinomar. He is a principal
and Vice-President of Lester Asset Management Inc., a discretionary
money management and advisory firm where he engages in portfolio
management, merger and acquisition activities, corporate
reorganization and private equity investments. Mr. Gertler received
his Bachelor of Commerce (Finance) degree from McGill University in
1982 and in 1984 received his Master of Business Administration
from the University of Western Ontario. Mr. Gertler was a director
of ProMetic Life Sciences Inc., a biopharmaceutical and TSX listed
corporation, from May, 2003 to May, 2005. Since August, 2004, he
has been a director of Neutron Enterprises Inc., which supplies
web-based 28 stock market stimulation and training products, and
was Chief Executive Officer until June, 2006. Mr. Gertler has also
been, since May, 2003, a director of Avicena Group, a biotechnology
company listed in the US; and a director, since June, 2007, of Zi
Corporation, a technology company providing software products for
communication devises and listed on the TSX.
Mr. Tim Hunt, Chairman and CEO of HuntMountain, commented, �The
proposed Qualifying Transaction would provide access to the world�s
best capital market for mineral exploration companies. With better
access to capital we believe that can fully realize the potential
of our Argentine exploration projects.�
HuntMountain Resources Ltd. is a U.S.-based junior exploration
company engaged in acquiring, exploring and developing precious and
base metals properties throughout North and South America. The
Company currently controls and operates projects in Santa Cruz
Argentina, Chihuahua Mexico, Nevada USA, and Quebec Canada.
This news release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E of
the Exchange Act. Forward-looking statements are inherently subject
to risks and uncertainties, many of which cannot be predicted with
accuracy, and some of which might not even be anticipated. This
news release is neither a prospectus nor an offer to sell
securities or stocks in the company. It is intended for
informational purposes only.