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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 7, 2006 (June 2, 2006)
BROOKMOUNT EXPLORATIONS INC.
(Exact name of registrant as specified in its charter)
Nevada 001-32181 98-0201259
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(State of Incorporation) (Commission File No.) (IRS Employer
Identification No.)
999 Canada Place, Suite 404, Vancouver, B.C. V6C 3E2
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(Address of principal executive offices, including zip code)
(604) 676 - 5244
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(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
SECTION 2 - FINANCIAL INFORMATION
ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS.
On February 7, 2006, Brookmount Explorations, Inc. ("we," "us," or the
"Company") announced that we had announced that we had signed a letter of intent
to acquire 100% of 722161 BC Ltd. which owns a 56% interest in 45 claims (a
total of 145 units) covering an area of approximately 3160 hectares known as the
Rock Creek Property situated 10 kms southeast of Rock Creek, B.C. in the
Greenwood Mining Division (the "Property"). We closed this transaction on June
2, 2006.
The assets that comprise the Property The southern property boundary corresponds
to the Canada - US border and is centered about 10 kms NW of the Crown Jewel
open pit gold skarn deposit in Washington with a resource estimate in excess of
1.4 million ounces of gold that has cleared final hurdles and is scheduled to go
into production this year. Recent work that has been carried out on a portion
(Ket 28 occurrence) of the Rock Creek Property, an assortment of mapping,
assessment reports, silt and soil geochemistry, air and ground geophysics, with
several programs of shallow drilling has yielded significant and outstanding
values. These values range from 1.9 g/t to 52.22 g/t of Gold. An aeromagnetic
survey of the area conducted by Crownex Resources Corp. in 1989 indicates
geological and geophysical characteristics similar to the Crown Jewel Deposit. A
large and strong aeromagnetic anomaly characterizes both the Crown Jewel and the
Rock Creek ground and suggests that the two are caused by the same kind of
geological features. There are indications on the Rock Creek Property of a
potential of volcanogenic massive magnetite-sulfide environment that may be very
significant. The management of Brookmount feels that this acquisition is a
significant move for the company in its desire to diversify its holdings with
solid projects and add to shareholder value.
The transaction as closed provides us with an option to acquire 100% of the
interests of the seller, Karl Schindler, of Vancouver, British Columbia in
Canada. In order to satisfy the terms of the option agreement, we must, among
other things:
1. Issue 100,000 shares at the signing of the definitive documentation;
2. Pay Mr. Schindler $250,000 by making the following payments on or
before the following specified dates:
(a) August 15, 2006 - $10,000
(b) September 15, 2006 - $12,500
(c) November 15, 2006 - $12,500
(d) $12,500 on or before January 15, 2007, and installment
payments of $12,500 quarterly thereafter on or before the 15th
days of April, July, October and January of each year until the
total of $250,000 has been paid or satisfied;
We may satisfy our cash payment obligations by issuing stock a deemed
price which shall be equal to the average price at which our common
shares have traded on the OTC BB on the five days prior to the due date
of the payment.
3. We must issue to Mr. Schindler 500,000 of our common shares in four
equal tranches of 125,000 each on or before the 15th day of October in
each of 2006, 2007, 2008 and 2009.
4. In addition, we are required to spend an aggregate of $1,000,000 in
developing and mining the Property between closing and April 15, 2011.
In the event we terminate the relationship or default on our obligations, we
will have no further undertaking but will be required to remove our claims from
the Property within six months of the termination.
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SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
None.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned.
Dated: June 7, 2006 BROOKMOUNT EXPLORATIONS INC.
By: /s/ Zaf Sungur
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