www.bullionmm.com
Bullion Monarch Mining Inc. is a natural resource company that acquires mining properties to explore and develop. Bullion’s goal is to see the properties produce through joint ventures, leases, or sales. Bullion Monarch has recently undergone a reorganization and is now known as Bullion Monarch Mining, Inc. The company’s new trading symbol is BULM. Bullion believes it has excellent mining properties in Northern Nevada and throughout the Western United States. Newmont’s new, large Leeville underground mine and he East Ore Body Mine are currently producing royalty payments to Bullion. The company also acquired a 60% interest in EnShale, Inc. in 2005 (now 80%) in order to profit from the growing demand for oil by mining and processing oil shale into oil products. The Company currently has under lease 4,650 acres of oil shale property in the mahogany zone.
Bullion Monarch receives first royalty payment from Newmont's North Lantern Mine
Bullion Monarch Mining (OTC:BULM) has received its first royalty payment from Newmont Mining's North Lantern Mine in the gold rich Carlin Trend of Northeastern Nevada, it said Tuesday, but the dispute between the two companies is far from over.
North Lantern is the third mine operated by Newmont (NYSE:NEM, TSX:NMC) to produce inside Bullion`s core royalty claim block, alongside Leeville underground and East Ore Body.
By contract, Bullion receives a 1% royalty on all production in this approximately five square-mile claim block. The company’s revenue model is to develop its properties through joint ventures or retained royalties on developed properties, thus maintaining a low liability and expense structure.
The majority of its current revenues are derived from the royalty claim block located in Northeastern Nevada's Carlin Trend, as both Leeville and East Ore are already producing royalties.
But the relationship between Bullion and Newmont has been strained for some time. Bullion initiated a legal battle with Newmont, as the company believes it is owed additional royalty payments relating to a 1979 agreement between predecessors of Bullion and Newmont.
Under the terms of the 1979 agreement, Bullion ceased mining and exploration activities in the Lynn Mining District located in Northern Eureka County in Nevada, as well as a defined multiple square mile area surrounding this area. In exchange, it is claimed that Newmont (through its predecessor), agreed to pay Bullion a 1% royalty on any production in the Lynn Mining District and the surrounding area.
Bullion also named Barrick Gold (TSX:ABX, NYSE:ABX) as a defendant in the case, after Bullion's counsel supposedly received information uncovering a joint venture between Newmont and Barrick that was dissolved in 1999. It is claimed that the information suggests that both Newmont and Barrick knew of the royalty obligations to Bullion, and therefore Barrick may also be responsible for the royalties owed.
"The court has recently granted Summary Judgment in favor of Newmont on its defense of Laches. We are seeking clarification of the extent of the ruling and will seek reconsideration of the ruling. We also expect that Bullion will appeal the ruling," the company said in a statement.
With regards to the North Lantern monies owed, Bullion has said that it has no projections for the amount of the new royalty payments or their duration, and has requested more detailed account information of the royalties from Newmont.
According to Bullion, however, Newmont has refused to provide the data.
