Black Pearl Minerals Consolidated Inc.

Black Pearl Minerals Consolidated Inc.

March 06, 2008 10:56 ET

Black Pearl Signs Letter Agreement to Acquire Quebec Lithium

TORONTO, ONTARIO--(Marketwire - March 6, 2008) - Black Pearl Minerals Consolidated Inc. ("Black Pearl Minerals") (TSX VENTURE:BLK) and IAMGOLD Corporation ("IAMGOLD") have signed a Letter Agreement on the Quebec Lithium property that outlines the terms and conditions upon which Black Pearl Minerals may acquire the Quebec Lithium property from IAMGOLD. By executing the Letter Agreement, the parties agree to proceed to the execution and delivery of a definitive agreement no later than May 30, 2008.

Terms of the transaction will partially be as follows:

1) Black Pearl Minerals will pay IAMGOLD $350,000 in cash and will pay for IAMGOLD's out-of-pocket expenses to complete the transaction.

2) Subject to regulatory approval, Black Pearl Minerals will issue 6 million common shares to IAMGOLD.

Quebec Lithium was operated under the former Quebec Lithium Corporation as an underground mine, surface concentration plant and a refinery from 1955 to 1965, to produce ceramic grade and chemical grade spodumene concentrates, lithium carbonate, lithium hydroxide monohydrate as well as a small quantity of lithium chloride and feldspar.

At the time of the suspension of mining operations the ore reserve was stated to be 15,612,300 tonnes at a grade of 1.14 % LiO2 calculated down to the 150m level in the proven, probable and possible categories. The reserve was calculated using an 85% recovery rate and a 7% dilution factor. The actual recovered grade during the ten years of production was 1.25% LiO2.

The previous reserve is being treated as a historical resource and is not National Instrument 43-101 compliant as it was completed prior to the implementation of these requirements. However, given the quality of the work completed, the company believes the historical resource to be relevant and reliable. In addition, a qualified person has not done sufficient work to classify the historical resource as a current mineral resource and the issuer is not treating the historical resource as current. Hence, the historical resource should not be relied upon.

Mitch Lavery (P.Geo), is the Company's qualified as required under NI 43-101 and has reviewed the technical information contained in this press release.

Shares Outstanding: 58,977,801

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Black Pearl Minerals Consolidated Inc.
    Judy Baker
    (416) 361-2821
    Black Pearl Minerals Consolidated Inc.
    Jim MacDonald
    Corp. Communications
    (604) 602-4935