Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

January 25, 2010 12:14 ET

Pershimco Resources Inc.: Update on Advanced Negotiations for the Acquisition of Property in Panama

ROUYN-NORANDA, QUEBEC--(Marketwire - Jan. 25, 2010) - Pershimco Resources Inc. (the "Corporation" or "Pershimco") (TSX VENTURE:PRO)(FRANKFURT:BIZ) is pleased to announce advanced negotiations leading to the signing of a definitive agreement for the acquisition of up to 85% of the shares of Minera Cerro Quema S.A. ("MCQ"), a Panamanian company owned by Bellhaven Copper and Gold Inc. ("Bellhaven") (TSX VENTURE:BHV), as announced on December 31, 2009 (the "Project").

Under the terms and conditions of the Letter of Intent, Pershimco will have the option to acquire, in proportion with the payments made following the schedule hereunder, up to 75% of MCQ by making cumulative payments of US$18,452,350 (the "Purchase Price"). The Purchase Price will be payable cash, with a portion payable in Class "A" shares of the Corporation (the "Common Shares") at a deemed price of US$0.30 per Common Share for any payment made prior to February 15, 2010 and at the market price at the close of trading on February 15, 2010 for any payment made after such date, with a minimum price of US$0.30 per Common Share, for the issuance of a maximum of 796,664 Common Shares. The Purchase Price will be allocated to the development of the Project, of which an amount of US$12,500,000 will be invested in the commercial production of the Cerro Quema gold mine according to a timeline to be determined upon the conclusion of a final agreement, and will also serve to pay various existing debts related to the Project, the whole, according to the following schedule:



------------------------------------------------------------------------
DATE BELLHAVEN COPPER CENTRAL SUN CARENA
& GOLD INC. MINING INC. EQUITIES CORP.
------------------------------------------------------------------------
Payable Payable in
cash shares
(maximum #)
------------------------------------------------------------------------
Letter of Intent
signature $175,000 250,000 shares $100,000 $125,000
------------------------------------------------------------------------
Jan. 15, 2010 $80,000 66,666 shares $100,000 $125,000
------------------------------------------------------------------------
Feb. 15, 2010 $80,000 66,666 shares $100,000 $100,000
------------------------------------------------------------------------
Mar. 15, 2010 $80,000 66,666 shares $100,000 $100,000
------------------------------------------------------------------------
Apr. 15, 2010 $541,000 346,666 shares $600,000 $600,000
------------------------------------------------------------------------
May 15, 2010 - - $100,000 $100,000
------------------------------------------------------------------------
Jun. 15, 2010 - - $100,000 $100,000
------------------------------------------------------------------------
Jul. 15, 2010 - - $600,000 $100,000
------------------------------------------------------------------------
Aug. 15, 2010 - - - $100,000
------------------------------------------------------------------------
Sep. 15, 2010 - - - $600,000
------------------------------------------------------------------------
TOTAL $956,000 796,664 shares $1,800,000 $2,050,000
------------------------------------------------------------------------


Upon full payment of the Purchase Price, the Corporation will obtain an option to acquire an additional 10% interest in MCQ (the "Option") at an exercise price equivalent to 452.69 ounces of gold at the price per ounce of gold at the close of trading on the eve of the day the Option is exercised. The exercise price will be payable cash and/or in Common Shares, as agreed upon by the parties at such time. The Option will expire 24 months following the signing of the final agreement.

The acquisition of the Project, the payment of the Purchase Price and the issuance of Common Shares remain subject to a satisfactory due diligence review, the finalization of financing agreements, the signature of a definitive agreement and the approval of the regulatory authorities.

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 Dia 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.

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.

For more information, please visit the Corporation's website at www.pershimco.ca.

Contact Information

  • Pershimco Resources Inc.
    Alain Bureau, Eng.
    President and Chief Executive Officer
    819-797-2180