Thunder Mountain Gold plans $6.4M private placement for South Mountain

Thunder Mountain Gold, Inc. (TSXV: THM) (OTCQB: THMG) announced that its board of directors has approved a non-brokered private placement of up to approximately US$6.4 million in gross proceeds, according to a press release statement.

The company plans to issue up to 9,143,000 units at a price of US$0.70 (CAD$1.00) per unit. Each unit consists of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at US$1.00 (CAD$1.42) for a period of 24 months from the date of issuance.

Proceeds from the private placement are designated for advancing the South Mountain Project in Owyhee County, Idaho, including drilling, assaying, geophysical surveys, and general administration.

The company may close the private placement in one or more tranches, subject to approval from the TSX Venture Exchange. Securities issued will be subject to a four-month hold period under TSX Venture Exchange policies and applicable Canadian securities legislation.

Thunder Mountain Gold said it intends to pay finder's fees of up to 6% of gross proceeds raised, along with non-transferable common share purchase warrants, to certain finders, subject to TSX Venture Exchange approval.

The South Mountain Project is a polymetallic development project containing zinc, silver, gold, and copper. The company states it has invested approximately US$25 million into the project since 2007.

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