Pacific Coast Announces Renegotiation of Burwash Option Agreement
Pacific Coast Nickel Corp. is pleased to announce that it has renegotiated the terms of the Burwash Option Agreement with Strategic Metals Ltd. to reduce the required expenditures in 2009 to zero. The Company will assess the prudence of a 2009 program with reference to the availability of further financing on reasonable terms.
Michael Sweatman, President of Pacific Coast said, "this is a recognition of the extraordinary times that we are all facing, both parties are aware of the market realities, as we at Pacific Coast strive to preserve our cash. We remain strongly committed to the project and should conditions improve we will consider mobilizing a program in the summer of 2009 to follow up on our 2008 drill results. We appreciate the realistic approach that Strategic has taken in allowing for this renegotiation."
The revised agreement removes expenses required in 2009 and reallocates them to 2010 and 2011 as follows:
- $1,000,000 on or before December 1, 2010; and
- $1,600,000 on or before December 1, 2011;
The agreement also provides for Pacific Coast to make payments and share issuances to Strategic as follows:
- $25,000 on or before March 31, 2009;
- an additional $30,000 on or before March 31, 2010; and
- an additional $50,000 on or before March 31, 2011;
Allotting and issuing the following common shares in its capital stock;
- 100,000 shares on or before March 31, 2009;
- 150,000 shares on or before March 31, 2010; and
- 200,000 shares on or before March 31, 2011
The Burwash property, located 8 kilometres by an all weather road from the Alaska Highway in south western Yukon, hosts nickel-copper-platinum group element (PGE) mineralization related to intrusions of the Late Triassic Kluane Mafic-Ultramafic Suite that were emplaced during a period of uplift and extension related to widespread basaltic volcanism. The property overlies the east half of the Quill Creek Mafic-Ultramafic Complex, a 20 km long multiphase sill-like intrusion that attains a maximum thickness of over 1 km. The Complex also hosts a number of other nickel-copper-PGE occurrences, the most significant and best explored of which is the former Wellgreen Mine, located immediately west of the Burwash property.
Pacific Coast has a small grass roots program in Uruguay underway which will be wrapped up later this month and results will be reviewed over the next several months.
Pacific Coast Nickel currently has cash on hand and intends to moderate expenses to preserve that cash over the coming year. This will include a review of all proposed expenses to ensure that maximum benefit is derived from any cash expenditures.
For further information please contact Michael Sweatman, President, 604-684-4312 or email firstname.lastname@example.org
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
Mineral resources that are not mineral reserves do not have demonstrated economic viability. 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.
Forward Looking Statements: This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including, without limitation, statements potential mineralization, the estimation of mineral resources, the realization of mineral resource estimates, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, permitting time lines, metal prices and currency exchange rates, availability of capital, government regulation of exploration operations, environmental risks, reclamation, title, and future plans and objectives of the company are forward-looking statements that involve various risks and uncertainties. . Although Prophecy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Forward-looking statements are based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain necessary approvals in respect of the Transaction, unsuccessful exploration results, changes in project parameters as plans continue to be refined, results of future resource estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, risks associated with operating in foreign jurisdictions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the companies with securities regulators. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral exploration and development of mines is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on Prophecy and the risks and challenges of their businesses, investors should review their annual filings that are available at 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 release."
This press release does not constitute an offer to sell or a solicitation to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended ("the U.S. Securities Act") or any state securities law and may not be offered or sold in the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.