Marifil Options the Las Aguilas Project to Pacific Coast Nickel Corp.
LAS VEGAS, NEVADA -- (Marketwire) -- 11/08/10 -- Marifil Mines Ltd. (TSX VENTURE: MFM) ('Marifil' or 'the Company') is pleased to announce that the Company has entered into a joint venture option agreement for its Las Aguilas Nickel-Copper-PGM property with Pacific Coast Nickel Corp. (TSX VENTURE: NKL).
The agreement with Pacific Coast provides for payments and work commitments to earn a 49% interest in the Property as follows (all figures in U.S. dollars):
Cash and Shares
1. $25,000 on signing the agreement and an additional 250,000 shares on
approval of the TSX venture Exchange; during a due diligence phase
Pacific Coast will complete a resource estimate followed by further
payments as follows:
2. $75,000 and 250,000 shares on or before April 1, 2012;
3. $100,000 and 250,000 shares on or before April 1, 2013
4. $100,000 and 250,000 shares on or before April 1, 2014
Work Commitments:
1. On or before April 1, 2012 incur $500,000 in exploration expenditures,
2. On or before April 1, 2013 incur $500,000 in exploration expenditures,
3. On or before April 1, 2014 incur $1,000,000 in exploration expenditures.
Pacific Coast can earn an additional 11% (bringing the company's interest to 60%) by completing a pre-feasibility study and issuing 2,000,000 shares on or before April 1 2015 and then a further 10% (bringing the company's interest to 70%) by completing a feasibility study before April 15, 2016.
If Marifil elects not to pay its 30% share of costs once Pacific Coast has earned its 70% interest, then Pacific Coast has the option of purchasing Marifil's 30% for $5,000,000. In such event, Marifil would retain a 3% NSR, of which a first 0.5% could be purchased for $1,000,000 and a second 0.5% could be purchased for $2,000,000, thereby reducing Marifil's NSR to 2.0%.
'We are very pleased to announce this joint venture with Pacific Coast,' stated John Hite, President of Marifil Mines. 'The Las Aguilas project is very promising and we look forward to the results of Pacific Coast's exploration efforts, particularly on the East Deposit where the deepest holes are well outside the historic resource estimate and demonstrate the deposit is getting larger and richer with depth. Hole LA 08-078, the deepest hole, intersected 19.7 m grading 0.58% nickel, 0.42% copper, 0.03% cobalt, 0.44 g/t platinum, 0.50 g/t palladium, and 0.22 g/t gold, including 5.64 m grading 1.05% nickel, 0.62% copper, 0.04% cobalt, 0.8 g/t platinum, 0.69 g/t palladium, and 0.14 g/t gold. This is very exciting news for the shareholders in both companies.'
About Las Aguilas
The Las Aguilas Property is located in San Luis Province, Central Argentina, approximately 730 km WNW of Buenos Aires, and 30 km NE of San Luis, the province capital. The approximate coordinates of the centre of the property are 330 07' S, and 660 08' W.
The Las Aguilas deposit contains an historical resource of 2.2 million tonnes grading about 0.52% nickel, 0.50% copper, 0.04% cobalt and significant amounts of platinum group elements (non-NI 43-101 compliant). This resource was calculated from 10,000 meters of diamond drilling between 1970 and 1984.
The resources are categorized as 'historical estimates' and have not been reviewed or verified under National Instrument 43-101. However, Marifil believes that the property has the potential for significant additional nickel mineralization. The historical exploration data was developed by the Argentine government agency Fabricaciones Militares who conducted an exploration program in the area.
For further information regarding Marifil Mines Ltd., please refer to the Company's filings available on SEDAR or on Marifil's website at www.marifilmines.com.
This press release has been reviewed and approved by John Hite, President of Marifil Mines Ltd. and by Richard Walters, Vice President under whose directions the exploration program is being carried out. Mr. Hite and Mr. Walters are Qualified Persons as defined by National Instrument 43-101.
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Contacts:
Marifil Mines Ltd.
John Hite
President
(702) 562-4880
www.marifilmines.com
Ascenta Capital Partners Inc.
Hugh Oswald
Investor Relations
(604) 684-4743 ext. 243
hugh@ascentacapital.com