Published: February 11, 2021 |

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Ximen Mining has signed an indicative term sheet with an arm’s-length Swiss-based metals trading firm to provide $5 million of financing in the form of a secured gold loan for the planned development of a 1200 meter decline and extraction of a 10,000-tonne bulk sample at the company’s Kenville Gold Mine property.

“This non-dilutive financing is an important milestone as we continue moving forward on the development of the Kenville Gold Mine towards production,” said Christopher R. Anderson, Ximen’s president and CEO.

“Following months of discussions, we are extremely pleased to have come to terms with a sophisticated firm that understands our industry and is providing us with the final stepping stone to satisfy our cash flow requirements,” added Anderson.

The Kenville Gold Mine is situated 8 km west of the City of Nelson, BC on a group of crown granted mineral claims, together with surface rights that are 100 percent owned by Ximen. The Kenville Gold Mine commenced production in 1890 and continued in operation into the 1950’s.

Since acquiring the project, Ximen has been undertaking the work necessary to secure a permit for the development of a new underground decline to access an area west and south of the historic mine where a series of gold-quartz vein intercepts were drilled between 2009 and 2012. Ximen believes this area is a continuation of the gold deposit that was mined historically. Permitting is expected to be completed within the next 8 weeks. Ximen has also rehabilitated the portal to the 257 Level of the Kenville Gold mine to provide access to the area of historic mineral resources that were reported in the 2009 technical report.

The company’s current development plans are based solely on its review of the historical records regarding the Kenville Mine, the technical report and drilling assay results disclosed by the previous operator, and its own verification assays of a subset of the available core samples from previous owner’s exploration programs. It has not undertaken the technical work necessary to independently establish mineral resources.

The company expects that, when the contemplated permits and financing are secured, it will be able to proceed immediately with mine development, having acquired the necessary underground mining equipment, including a new compressor, 3-yard scooptram, 13-tonne rock truck, long-tom, drills and fans. The operation is expected to be able to utilize existing surface infrastructure, which includes mechanical repair shop, office and ancillary buildings.

All of the required personnel will be sourced locally. The new portal site has been stripped and readied to break ground, and the electric power supply has been installed at the portal. Power is supplied from the local grid, which is connected to the Kootenay Canal Generating Station located west of Nelson on the Kootenay River.

About Ximen Mining Corp.
Ximen Mining Corp. owns 100 percent interest in all three of its precious metal projects located in southern BC. Ximen`s two Gold projects are The Gold Drop Project and The Brett Epithermal Gold Project. Ximen also owns the Treasure Mountain Silver Project adjacent to the past-producing Huldra Silver Mine. Currently, both the Gold Drop Project and the Treasure Mountain Silver Project are under option agreements. The option partners are making annual staged cash and stocks payments as well as funding the development of these projects. The company has recently acquired control of the Kenville Gold mine near Nelson British Columbia and The Amelia Gold Mine in the center of the McKinney Gold Camp.

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