Pacific Coast Announces Las Aguilas Option Agreement
Pacific Coast Nickel Corp. (the "Company") is pleased to announce that it has entered into a letter agreement with Marifil Mines Limited ("Marifil") with an option to acquire a 70% interest in the Las Aguilas Nickel-Copper-PGM property located in San Luis Province, Argentina.
Jim Walchuck, President of Pacific Coast said, "The Company has been seeking a property which would increase share holder value for many months. The mandate was to seek out a property which not only had resources but also had the potential to be expanded. The Las Aguilas property is a perfect fit and we believe that increased share holder value will be demonstrated in the short term and long term with the development of this asset. This is an exciting prospect for the Company."
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.
Marifil has reported that the Las Aguilas deposit contains a 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. (this is not a National Instrument 43-101 compliant resource estimate). 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, the Company believes that the property has the potential to add significant additional nickel mineralization. The historical exploration data was developed by the Argentine government agency Fabricaciones Militares which conducted an exploration program in the area.
Additional drilling was conducted by a former partner of the property in 2007 and 2008, which is anticipated to expand the historical resource estimate significantly.
The agreement with Marifil provides for payments and work commitments as follows:
To earn a 49% interest in the property.
Cash and Shares
1) $25,000 upon signing and 250,000 shares on approval of the TSX Venture Exchange; and
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
1) On or before April 1, 2012 complete a resource estimate based on work completed to date,
2) On or before April 1, 2013 incur $500,000 in exploration expenditures,
3) On or before April 1, 2014 incur $500,000 in exploration expenditures,
4) On or before April 1, 2015 incur $1,000,000 in exploration expenditures.
The agreement also provides for Pacific Coast to earn an additional 11% (bringing the interest to 60%) for preparation of a pre feasibility study and issue of 1,000,000 shares and payment of $100,000 on or before April 1 2015 and a further 10% (bringing the total interest to 70%) for completion of a feasibility study before April 15, 2016.
The agreement also provides for granting of a 3% NSR to Marifil of which 0.5% can be purchased for $1,000,000 and Pacific Coast retains the option of buying Marifil's 30% for $5,000,000.
Murray McClaren, P.Geo., is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.
We Seek Safe Harbour
On behalf of the board of directors of Pacific Coast Nickel Corp.,
James Walchuck, President, CEO and Director
For more information, please contact:
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.