Pacific Imperial Mines Signs Keg Mountain Agreement
March 31 2014 - 5:10PM
Marketwired
Pacific Imperial Mines Signs Keg Mountain Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 31, 2014) -
Pacific Imperial Mines Inc. ("PPM" or the "Company")
(TSX-VENTURE:PPM.H) is pleased to announce that it has signed a
final Agreement with Inland Explorations Ltd., a private BC company
("Inland"), for an option to acquire up to 65% interest in Inland's
drill-ready Keg Mountain Property ("Keg Property") located 100
kilometers south of Salt Lake City, in central Utah's Great Basin,
one of the premier metallogenic provinces in the world. The Keg
property comprises 5,081.44 acres located in Juab County, Utah and
consists of 184 federal unpatented mineral claims and two State
Section Leases.
The Company has
submitted the signed Agreement and NI 43-101 report on the property
to the TSX Venture Exchange in order to complete the application
for reactivation to Tier 2. Once the TSX Venture Exchange approvals
have been received including approval for the completed private
placement, preparation for a drilling program will begin.
Under the terms of
the Agreement, PPM has the option to earn a 51% interest within 4
years by incurring total property expenditures of US$5.5M, issuing
to Inland a total of 6.5 million shares in the Company, and making
total cash payments of C$375,000, as well as posting any required
exploration bonds and paying all annual property and permit related
expenses. Fifty thousand dollars (C$50,000) and one (1) million
shares shall be due on Closing with the balance of property
expenditures, payments of cash and share payments staged over a
four year period and due on or before each anniversary date of the
Closing Date as follows:
Year |
Property Expenditures (US$) |
Cash Cdn ($) |
Shares |
1 |
$ |
250,000 |
$ |
50,000 |
1
M |
2 |
$ |
750,000 |
$ |
75,000 |
1.25 M |
3 |
$ |
1,500,000 |
$ |
100,000 |
1.5 M |
4 |
$ |
3,000,000 |
$ |
100,000 |
1.75 M |
Upon PPM earning a
51% interest, the Company shall have the option to increase its
interest in the Keg Property by an additional 9% to 60% by spending
an additional US$4.5M on the Keg Property and delivering a
pre-feasibility level study on the property with 2 years. Upon
earning a 60% interest, the Company has the option to increase its
interest by an additional 5% to 65% by spending another US$5M on
the property and delivering a bankable feasibility study within 2
years of acquiring a 60% interest.
Drill targets on the
Keg Property have been defined by Inland's exploration work that
includes geological mapping and sampling and airborne and surface
geophysical surveys. One of the high priority untested drill
targets is defined by anomalous surface geochemical values of lead,
zinc, copper, molybdenum, gold and silver that are coincident with
a large Induced Polarization (IP) anomaly, indicating potential for
a porphyry copper-molybdenum deposit and associated skarn
mineralization. The mineral concessions comprising the property are
currently held 100% by Inland. Drill plans have been approved by
the Utah Division of Oil, Gas and Mining and permits should be
granted upon posting of a reclamation bond.
About Pacific Imperial Mines
Inc.
Pacific Imperial
Mines Inc. is a mineral exploration company based in Vancouver,
Canada, engaged in the evaluation acquisition and exploration of
mineral properties in an acceptable risk environment. The company's
current focus is on acquisition of gold and base metal properties.
The Company has an option to acquire up to a 65% in the drill-ready
Keg Mountain Property ("Keg Property") located in central Utah's
Great Basin, one of the premier metallogenic provinces in the
world.
H. Leo King,
President of the Company, is a Qualified Person, as defined in
National Instrument 43-101, and is responsible for the technical
content of this press release.
On behalf of the
Board of Directors, PACIFIC IMPERIAL MINES INC.
H. Leo King,
President and Director
Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange), accept
responsibility for the adequacy or accuracy of this release. This
news release and the information contained herein does not
constitute an offer of securities for sale in the United States and
securities may not be offered or sold in the United States absent
registration or exemption from registration.
Pacific Imperial Mines Inc.H. Leo
KingPresident604-669-6332604-681-5910investor@pacificimperialmines.comwww.pacificimperialmines.com