Pershimco Acquires 100% of the Panamanian Gold Corporation Minera Cerro Quema, S.A.
ROUYN-NORANDA, QUEBEC -- (Marketwire) -- 09/10/10 -- Pershimco Resources Inc.'s management (the 'Corporation' or 'Pershimco') (TSX VENTURE: PRO)(FRANKFURT: BIZ) is pleased to announce that it has reached an agreement with all stakeholders to acquire all interests in the Cerro Quema Mining Project held by the corporation Minera Cerro Quema, S.A. ('MCQ'), namely Central Sun Mining Inc., RNC (Panama) Ltd., MCQ, Carena Equities Corp., Bellhaven Copper & Gold Inc. and Julio Benedetti.
Under the terms of these agreements, all subject to the TSX Venture's final approval, Pershimco will acquire all interests and obligations of MCQ for a total consideration of $6,400,000 (the 'Purchase Price').
The Purchase Price is payable as follows: (i) the payment of $1,560,000 at closing; (ii) the issuance of 8,500,000 common shares of Pershimco at a price of $0.35, 47% of which are subject to a 24 month contractual non-sale period starting at closing and 100% of which are subject to a mandatory 4 month holding period; (iii) the issuance of 4,500,000 warrants entitling the holder thereof to purchase one common share at $0.45 for the first year and increasing by $0.20 per year during the 4 subsequent years, the warrants and the common shares issuable upon exercise of the warrants being subject to a mandatory 4 month holding period; and (iv) the payment over a period of 8 months starting in March 2011 of US$1,800,000 as a balance of the Purchase Price.
The Project is located on the Azuero Peninsula approximately 190 km southwest of Panama City and contains historical measured and indicated resources of 451,400 ounces of gold, with an average grade of 0.93 g/t and a cutoff grade of 0.30 g/t. The Cerro Quema historical report written by Datamine in 1996 and the RNC Gold 2003 historical report outlined pre-NI 43-101 resources and the estimate cited is historical in nature. Although Pershimco is not yet treating the historical estimate as current mineral resources, twin drilling and additional exploration work is currently being realized to classify the historical estimate as compliant NI 43-101 mineral resources. The historical estimate should not be relied upon until required exploration works are completed. Upon approval of the regulatory authorities, which is expected shortly, the Corporation will file its NI 43-101 compliant Technical Report on the Cerro Quema Project prepared by Scott Wilson Roscoe Postle Associates, Inc. (Scott Wilson RPA).
'This is a very important milestone for Pershimco. The upside linked to this project and the constant increase in the gold price makes this advanced project very appealing. The Panamanian government's pro-active attitude toward being a mining-oriented country, along with the recent signature of the Free Trade Agreement between Canada and Panama points toward a bright future for mining projects in this part of the world. Our team already has hundreds of meters drilled in the LaPava gold bearing dome in order to come up with the first 43-101 compliant report on the resources contained in the La Pava open pit. Our short term goal is to also bring the adjacent open pit resources towards a 43-101 compliant report', commented Mr. Alain Bureau, Eng., President and Chief Executive Officer of the Corporation.
About Pershimco Resources Inc.
Pershimco Resources Inc. is a Canadian-based resource exploration corporation holding strategic properties located in Quebec, Canada and in Latin America.
The Corporation's documents are available on www.sedar.com.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Pershimco Resources Inc.
Alain Bureau, P. Eng.
President and Chief Executive Officer
819-797-2180
www.pershimco.ca