SALT LAKE CITY, (Business Wire).- Montana Mining Corp., a public company trading under the symbol MMGC.OB (Montana) today announced that it has signed a letter of intent to acquire Park Capital Management, Inc. (Park) as a wholly owned subsidiary. Park is a private company headquartered in Regina, Saskatchewan that intends to develop a mountain biking resort in the Dominican Republic through its wholly owned subsidiary, JPB S.A.
Park's goal is to design, construct and operate ParkVida, a premiere destination resort designed for mountain biking of all disciplines (i.e. downhill, cross-country, free ride, dirt jump, trials/street, and cyclocross). Nestled between lush mountains, running along green valleys, and encompassing alpine forests in the heart of the Dominican Republic, the 700-acre resort will offer mountain biking aficionados and adventurers an unparalleled biking experience that includes gorgeous vistas, handcrafted single-track trails, burms, tabletops, hipturns, ladderdrops, beautiful transitions, feature and skills parks, and dirt jumps. After a challenging day of biking, visitors will be able relax in an exclusive, "six-star" resort that retains its rural flavor far off the beaten path. Park expects that ParkVida will be open for its first season by October 31, 2011.
"We are excited about the promise associated with our intended acquisition," said Ruairidh Campbell, chief executive officer of Montana. "Mountain biking has become the activity of choice for many outdoor enthusiasts yet the number of full-service facilities dedicated to this growing industry is limited." Mr. Campbell stated, "I believe that ParkVida will attract bikers from around the world for its exotic location and mountain bike specific amenities."
Montana's acquisition is intended as a share exchange of 14,341,800 common shares and 6,507,600 purchase warrants exercisable for a period of ten years at $0.005 for all ownership interests in Park. The transaction is conditioned on Montana's ability to fund between $750,000 and $1,500,000 at $0.05 per share on or before the closing of a definitive agreement as well as the conversion to equity of certain debt obligations. Montana expects to close a definitive agreement on or before August 13, 2010. Private placement proceeds are to be used in the initial development of the acreage into the resort.
"Six years of faith in the right people, sheer determination, and patience supported by our uncompromised dream of procuring the perfect terrain for a rider park has brought us to this point," said Jay Blackmore, president of Park. "The chance to develop what will be the greatest destination rider park in the world for an international audience of fifty million riders through a public entity is a just reward for our efforts and provides a mechanism by which riders can participate in our venture."