Pele Mountain Announces the Renewal of its Agreement with its President and Chief Executive Officer
TORONTO, ONTARIO -- (Marketwire) -- 06/01/12 -- Pele Mountain Resources Inc. (TSX VENTURE: GEM)(OTCQX: GOLDF) ("Pele" or the "Company") announced today that the Company and its President and Chief Executive Officer, Alan L. Shefsky have negotiated a 4-year renewal of Mr. Shefsky's executive employment agreement (the "Executive Agreement"). The Executive Agreement in effect terminates and replaces the previous five-year executive employment agreement which was set to expire on September 30, 2012.
In connection with the Executive Agreement, Mr. Shefsky has been granted options (the "CEO Options") to acquire up to 3,000,000 common shares of the Company, expiring on or before September 30, 2015. The CEO Options are exercisable at an exercise price of $0.15 per common share for the first 1,000,000 options (collectively, the "First Tranche Options"), $0.20 per common share for the second 1,000,000 options (collectively, the "Second Tranche Options") and $0.25 per common share for the remaining 1,000,000 options (collectively, the "Third Tranche Options"). Furthermore, effective October 1, 2013, the exercise price of all unexercised First Tranche Options shall increase to $0.20 per common share and effective October 1, 2014, the exercise price of all unexercised First Tranche Options and Second Tranche Options shall be increased to $0.25 per common share. The First Tranche Options shall vest on October 1, 2012, the Second Tranche Options shall vest on October 1, 2013 and the Third Tranche Options shall vest on October 1, 2014. The granting of the CEO Options remain subject to regulatory acceptance of applicable filings.
About Pele
Pele Mountain Resources, a leader in Canadian rare earth development, is focused on the sustainable development of its 100-percent owned Eco Ridge Mine Rare Earths and Uranium Project. Eco Ridge is located in Elliot Lake, the only Canadian mining camp to have ever achieved commercial REO production. With well-understood geology, mineralogy, and metallurgy, excellent regional infrastructure, and strong local support, Eco Ridge is an ideal location for the development of a safe, secure, and reliable long-term supply of critical rare earths and uranium. Pele has also entered into an agreement to purchase the Simon Rare Earth Claims in Mountain Pass, California. Pele's shares are listed on the TSX Venture Exchange under the symbol "GEM" and on the OTCQX under the symbol "GOLDF".
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Pele's future plans, objectives or goals, including words to the effect that Pele or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. The economic viability of the 43-101 mineral resource at Pele's Elliot Lake Project has not yet been demonstrated by a preliminary feasibility study.
Shares Outstanding: 148,951,246
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 release.
Contacts:
Pele Mountain Resources Inc.
Al Shefsky
President
(800) 315-7353
www.pelemountain.com