Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

November 13, 2007 10:44 ET

Pershimco Extends Land Position at Las Minitas in Sonora Mexico and Signs Definitive Agreement With Tara Gold

Adds more ground to secure kilometric strike extent to include additional newly identified potential strike targets in the continuation of the known silver-gold mineralization Assay results pending from the recently completed 3,000 m drilling on the first 2 of 6 targets of the Las Minitas and El Negro mineralized zones

CHIHUAHUA, MEXICO--(Marketwire - Nov. 13, 2007) - PERSHIMCO RESOURCES INC. (TSX VENTURE:PRO)(FSE:BIZ) is pleased to announce that it has signed the definitive option agreement with Tara Gold Resources Corporation (OTC:TRGD) (FSE:T8N) to acquire a 75% direct property interest in the original 8.27 km2 Las Minitas Silver-Gold Project in the State of Sonora, Mexico, consisting of 23 contiguous properties.

The parties also acquired a 100% interest in 7 additional contiguous properties, located to the north, east and south covering the on-strike extension of the known silver-gold mineralization, that will also form part of the Las Minitas Project (refer to the appended claim listing table): the 6.76 km2 Aurifero V (Fractions 1 and 2) and El Mezquite properties, and the 64.50 km2 Brisas de Oro (Fractions 1 and 2, and #2) property. The current size of the Las Minitas Project now totals 79.52 km2 in 30 contiguous properties.

The agreement terms remain the same from the LOI signed in May 2007, with the exception of a reduction of Pershimco's payments to Tara Gold by US$ 100,000 (details of the definitive agreement are appended below).

Now that the inclement weather and the rainy season is over access to certain important targets is now possible. Pershimco is planning a comprehensive exploration campaign on the Las Minitas Project, with airborne geophysics (magnetics, electro-magnetics, radiometrics), surface geochemical sampling, trenching and sampling, and 5000 meters of diamond drilling. Details of the program will be made available once Pershimco receives and processes assay results from its recently completed 3,000 m / 19 hole diamond drill program on the first 2 of 6 targets at the Las Minitas gold-rich and El Negro silver-rich targets. A total of 16 holes were completed at El Negro and 3 at Las Minitas.

The Las Minitas Project as outlined by the historical work

The Las Minitas Project is located in the western foothills of the Sierra Madre Occidental. 250 km SWW of Pershimco's La Bamba and San Miguel properties, and situated near mineral deposits owned by Agnico Eagle, Gammon Lake and Coeur D'Alene. The property is easily accessible year-round via 30 km of secondary roads north from the intersection of Highway #15 connecting Navojoa and Alamos to the village of Las Minitas.

A qualifying technical report was completed in September 2006 by M. H. Sandidge, P. Geo., titled "Technical Report, National Instrument (NI) 43-101 Qualifying Property Report, Las Minitas Project, Sonora, Mexico . The report outlined a pre-NI 43-101 resource of 13.53 million tonnes @ 260 g/t silver and 0.31 g/t gold (War Eagle Mining, 1994) within two mineralized zones. The 102.6 million ounces of silver and 120,500 ounces of gold reported are historical in nature. There has not been sufficient work to classify these historical estimates as compliant NI 43-101 Mineral Resources; nor is Pershimco treating the historical estimate as current mineral resources. The historical estimate should not be relied upon.

The report also stated that exploration work outside the areas of known mineralization is limited to non-existent, such that the size, shape, and the general character of the mineralization throughout most of the property is not well understood. The report recommended a minimum exploration program to advance the known mineralization from the previous drilling program to a higher level of confidence compliant with NI 43-101. The program included mapping, geophysics across the known and projected mineralized areas to delineate potential linear vein-type and disseminated mineralized structures, and in-fill drilling over the known mineralized areas delineated and in-extension of the 1994 drilling program, to outline Mineral Resources.

Direct field observations by Pershimco personnel, the historical work reported in the Sandidge Technical Report and a 2006 internal summary report by David Petersen, P. Eng., for Tara Gold Capital Resources Corporation, indicate 6 east-southeast trending mineralized corridors (Las Minitas, El Negro, Socorro, Aurifero V-1, Aurifero V-2 and Aurifero V-3), repeated at roughly 750 m N-S spacings, each a minimum 2 km in length.

The information in this news release has been prepared and reviewed by Mr. Jean Lafleur, P. Geo., Director and Technical Advisor to Pershimco, the Company's Qualified Person under NI 43-101.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian based junior resource and exploration company trading under the symbol PRO on the TSX Venture Exchange and under the symbol BIZ on the Frankfurt Stock Exchange. The Company holds 100% of several mining properties including the Courville Gold Project, near the Val-d'Or Gold Mining Camp, The Company has an option to acquire a number of Mexican properties in the states of Chihuahua and Sonora, Mexico, including 100% of the newly acquired Cu-Zn-Au-Ag skarn Magistral Project and 75% of the Las Minitas Ag-Au project. Pershimco's wholly owned La Bamba and San Miguel properties, in the Cusi Mining District, are under option to Dia Bras Exploration. Pershimco's strategy is to advance its exploration properties towards metal reserves and eventual production.

Please visit Pershimco on the web at www.pershimco.ca

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements that could reflect Pershimco's objectives, estimates, expectations and the impact of acquisitions on Pershimco's financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Pershimco's projections or expectations.

Las Minitas Project deal terms

Pershimco could earn a cumulative 75% direct property interest (via an initial 25%, followed by a 35% and finally the 75%), by making cumulative payments of US$ 1.83 million, staged exploration work for a total of US$ 5.20 million, property payments for US$ 3.20 million and issuing, subject to the TSX Venture Exchange's approval, 750,000 shares of Pershimco to Tara Gold Resources Corporation; 500,000 of which will be issued at the signing of the definitive agreement at a deemed price of C$ 1.25 per share for a total of C$ 625,000. The schedule of payments, work expenditures, shares issued and anniversary dates is outlined in the following table:



EXPLORATION PROPERTY
ANNIVERSARY DATES PAYMENTS(i) WORK SHARES PAYMENTS
(US$) (US$) ISSUED (US$)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TO ACQUIRE INITIAL 25%
--------------------------------------------------------------------------
May 10, 2007 (completed) 180,000
--------------------------------------------------------------------------
July 1, 2007 190,000
(completed)
--------------------------------------------------------------------------
September 7, 2007
(completed) 200,000
--------------------------------------------------------------------------
December 7, 2007 225,000
--------------------------------------------------------------------------
December 18, 2007 255,000
--------------------------------------------------------------------------
May 10, 2008 100,000
--------------------------------------------------------------------------
June 9, 2008 350,000 600,000 750,000
--------------------------------------------------------------------------
June 17, 2008 337,500
--------------------------------------------------------------------------
December 9, 2008 375,000
--------------------------------------------------------------------------
December 18, 2008 287,500
--------------------------------------------------------------------------
May 10, 2009 100,000
--------------------------------------------------------------------------
June 9, 2009 1,000,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TO ACQUIRE UP TO 35%
--------------------------------------------------------------------------
June 17, 2009 345,000
--------------------------------------------------------------------------
December 18, 2009 402,500
--------------------------------------------------------------------------
May 10, 2010 100,000
--------------------------------------------------------------------------
June 9, 2010 1,200,000
--------------------------------------------------------------------------
--------------------------------------------------------------------------
TO ACQUIRE UP TO 75%
--------------------------------------------------------------------------
June 17, 2010 517,500
--------------------------------------------------------------------------
March 18, 2011 862,500
--------------------------------------------------------------------------
May 11, 2011 100,000
(i)(i)
--------------------------------------------------------------------------
June 9, 2011 2,400,000
--------------------------------------------------------------------------
Bankeable Feasibility Study
--------------------------------------------------------------------------
TOTAL 1,730,000 5,200,000 750,000 3,197,500
--------------------------------------------------------------------------
--------------------------------------------------------------------------


(i) Half of the value can be made in Pershimco shares at 20% discount to the market price on the day of such payment.

(i)(i) Pershimco is required to make additional payments of US$ 100,000 in cash or in shares at 20% discount to the market price on the day of such payment to Tara Gold on or before May 10th of each year afterwards in order to maintain its interest earned.

There is also a finder's fee equivalent to 5% of the consideration offered by Pershimco (after conversion into Canadian dollars) representing 222,678 units at a deemed price of C$ 1.25. Each unit is comprised of one common share and one share purchase warrant. Of the C$ 1.25 price, C$ 1.249 is allocated towards the share and C$ 0.001 is allocated towards the share purchase warrant. Each warrant entitles the holder, for a period of 24 months following the date of the issuance of the share purchase warrant, to purchase one common share at an exercise price of C$ 1.65 per common share. An additional finder's fee includes 5% of the shares issued by Pershimco representing another 37,500 common shares at a deemed price of C$ 1.25 per share for a total of C$ 46,875.



The Las Minitas Project claim listing
---------------------------------------------
SIZE SIZE
CONCESSION NAME (hectares) (km2)
---------------------------------------------
ORIGINAL CONCESSIONS
---------------------------------------------
Aurifero Fraction I 30.67 0.31
---------------------------------------------
Aurifero Fraction II 13.54 0.14
---------------------------------------------
Aurifero II Fract.1. 23.02 0.23
---------------------------------------------
Aurifero II Fract.2. 15.37 0.15
---------------------------------------------
Aurifero II Fract.3. 6.70 0.07
---------------------------------------------
Aurifero III. 8.90 0.09
---------------------------------------------
Aurifero IV Fraction I 188.75 1.89
---------------------------------------------
Aurifero IV Fraction II 10.44 0.10
---------------------------------------------
Aurifero IV Fraction III 5.15 0.05
---------------------------------------------
Minitas Sur Fraction I 177.06 1.77
---------------------------------------------
Minitas Sur Fraction II 10.02 0.10
---------------------------------------------
Minitas Sur Fraction III 0.13 0.001
---------------------------------------------
Minitas Norte 103.73 1.04
---------------------------------------------
El Triunfo 4.96 0.05
---------------------------------------------
El Triunfo II 14.10 0.14
---------------------------------------------
Socorro 76.00 0.76
---------------------------------------------
Socorro Dos 45.35 0.45
---------------------------------------------
Zorra Negra 0.21 0.002
---------------------------------------------
Lorito 6.00 0.06
---------------------------------------------
Dios Mediante 15.86 0.16
---------------------------------------------
Josefa 60.80 0.61
---------------------------------------------
El Negro 9.00 0.09
---------------------------------------------
San Joaquin 0.86 0.009
---------------------------------------------
Sub-total 826.62 8.27
---------------------------------------------

NEW CONCESSIONS ACQUIRED
---------------------------------------------
Brisas de Oro (Fraction 1) 3,095.18 30.95
---------------------------------------------
Brisas de Oro (Fraction 2) 980.88 9.81
---------------------------------------------
Brisas de Oro 2 2,373.52 23.74
---------------------------------------------
Aurifero V Fraction I 400.70 4.01
---------------------------------------------
Aurifero V Fraction II 0.01 0.0001
---------------------------------------------
El Mezquite 275.20 2.75
---------------------------------------------
Sub-total 7,125.49 71.25
---------------------------------------------
Total 7,952.11 79.52
---------------------------------------------
---------------------------------------------

Contact Information

  • Pershimco Resources Inc.
    Michael Curtis
    President & CEO
    514-793-1915
    or
    Paradox Investor Relations
    866-460-0408
    514-341-1527 (FAX)
    infoparadox@qc.aira.com