Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

December 31, 2009 09:00 ET

Pershimco Resources Announces the Acquisition of Interests of Up to 85% in the Cerro Quema Gold Mining Project in Panama

ROUYN-NORANDA, QUEBEC--(Marketwire - Dec. 31, 2009)Pershimco Resources Inc. (the "Corporation" or "Pershimco") (TSX VENTURE:PRO) (FRANKFURT:BIZ) announces the signing of a Letter of Intent (the "LOI") for the acquisition of interests of up to 85% in the Cerro Quema gold mining project (the "Project"). The transaction will be concluded through the acquisition of shares of a Panamanian company, Minera Cerro Quema S.A. ("MCQ"), the whole, subject to the approval of the applicable regulatory authorities, a satisfactory due diligence review and the finalization of financing agreements. Pershimco is confident it will satisfy all conditions by February 15, 2010.

The Project is located on the Azuero Peninsula, approximately 190 kilometers southwest of Panama City, and contains a Measured and Indicated Resources of 451,400 ounces of gold with an average grade of 0.93 g/t to a cutoff grade of 0.30 g/t.

Alain Bureau, President and Chief Executive Officer of the Corporation stated: « Our Canadian and Mexican exploration professionals are very excited to participate in the advancement of this Project and the acceleration of the necessary due diligence review. With the drilling we intend to execute in the upcoming weeks, in addition to over 16,000 meters of drilling already performed to date, this Project will provide an excellent database for the disclosure of a NI 43-101 technical report."

Under the terms of the LOI, Pershimco will have the option to acquire up to 75% of MCQ in consideration of its investments that may reach close to US$18,500,000. The balance will be earmarked for the development of the Project and will also serve to pay previous debts due in connection with the Project, namely US$1,800,000 to Central Sun Mining Inc., US$2,050,000 to Carena Equities Corp. and US$1,195,000 to Bellhaven Copper & Gold Inc.

Upon realization of the investment of close to US$18,500,000, Pershimco will also obtain an option to acquire an additional 10% interest in MCQ. Pershimco will have until February 15, 2010 to perform its due diligence review confirming, namely, the Project's proven and probable reserves totaling a minimum of 10.5 million tons at an average grade of 1.10 g/t. Pershimco intends to conclude the final agreement over the following weeks.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian-based resource exploration corporation holding strategic properties located in Quebec, Canada and in the state of Chihuahua, Mexico.

The properties include a 100% interest in the highly prospective Courville Gold Project located in the Val-d'Or/Malartic Gold Mining Camp in Quebec. The Camp has historically produced 25 million ounces of gold. The Corporation also holds a 50% interest in the highly prospective La Bamba and San Miguel Silver properties located in the Cusi Silver Mining Camp. The Corporation has the option to increase its interest in the project to 70%, based on a new agreement entered into with its partner Dis Bras Exploration Inc. Furthermore, the Corporation holds a 100% interest in the polymetallic (copper-silver- gold-zinc) Skarn Magistral Project, also located in the State of Chihuahua, Mexico.

The Corporation's documents are available on www.sedar.com.
For more information, please visit the Corporation's website at www.pershimco.ca.

Neither 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.

Contact Information

  • Pershimco Resources Inc.
    Alain Bureau, Eng.
    President and Chief Executive Officer
    (819) 797-2180
    Website: www.pershimco.ca