Pacific Copper Corp.
OTC Bulletin Board : PPFP

Pacific Copper Corp.

February 26, 2009 19:02 ET

Pacific Copper Corp. Addresses Canadian Technical Information Disclosure With the British Columbia Securities Commission

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2009) - Pacific Copper Corp. (OTCBB:PPFP) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

On October 28, 2008, the British Columbia Securities Commission (the "BCSC"), the securities regulatory authority in the Province of British Columbia, Canada, delivered a letter to Pacific Copper Corp. (the "Company") stating that it had conducted a review of the Company's technical information disclosure practices under rules applicable in British Columbia. Based upon this review, the BCSC issued a cease trade order in respect of the Company's shares, which is limited to the Province of British Columbia, for not filing technical reports under Canadian National Instrument 43-101 Standards for Disclosure of Mineral Projects and its Companion Policy ("NI 43-101") respecting the Company's material mineral property interests.

To remove the CTO, the BCSC has requested, among other things, that the Company file NI 43-101 technical reports in respect of its material mineral properties and issue this news release to clarify certain of its technical information disclosure as it relates to NI 43-101. However, these clarifications do not affect any of the Company's financial statements or other disclosure made by the Company in any of its annual, quarterly or periodic reports filed with the United States Securities and Exchange Commission (the "SEC").

Background to the BCSC's review

The Company has publicly issued news releases and has posted them and certain third-party research reports relating to certain of its current and prospective mineral property interests on the Company's website, each of which was available in British Columbia. Certain of these news releases and research reports contained information relating to mineralization at certain of the Company's properties which could be construed to be mineral resources or mineral reserves or a preliminary assessment under NI 43-101. Pursuant to NI 43-101, the Company was required to have filed NI 43-101 compliant technical reports in respect of its material mineral properties to support such mineralization disclosure. Accordingly, the purpose of this news release is to clarify and retract certain of the disclosure previously made by the Company in respect of its material property interests.

Disclosure clarification respecting all mineral projects

NI 43-101 provides that written disclosure publicly made by a company of a mineral reserve, mineral resource or preliminary assessment relating to a mineral property material to a company must be supported by a technical report filed with the BCSC in accordance with the requirements of NI 43-101.

Furthermore, under NI 43-101 an issuer must ensure that any public disclosure of a mineral resource or mineral reserve: (i) utilizes only the applicable mineral resource and mineral reserve category set out in NI 43-101; (ii) reports each category of mineral resources and mineral reserves separately, and if both mineral resources and mineral reserves are disclosed, state the extent, if any, to which mineral reserves are included in total mineral resources; and (iii) must not add inferred mineral resources to the other categories of mineral resources. In addition, under NI 43-101 an issuer must not make any disclosure of quantity or grade of a deposit which has not been characterized as an inferred mineral resource, an indicated mineral resource, a measured mineral resource, a probable mineral reserve or a proven mineral reserve, or disclose results of an economic evaluation which uses inferred mineral resources. However, an issuer may disclose the potential quantity and grade, expressed as ranges, of a possible mineral deposit that is to be the target of further exploration, provided that the disclosure includes a proximate statement that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource on the property and that it is uncertain if potential exploration will result in discovery of a material resource on the property, as well as the basis on which the disclosed potential quantity and grade has been determined. In addition, NI 43-101 requires an issuer to ensure that all written disclosure of a scientific or technical nature concerning a mineral project on a property material to the issuer identifies and discloses the relationship to the issuer of the qualified person who prepared or supervised the preparation of the technical report or other information that forms the basis of the written disclosure.

None of the properties in which the Company has an interest has been determined to contain any mineral resources or reserves under NI 43-101, and there is no basis for any economically viable mineral deposit on any of the Company's properties. However, in certain of its news releases and on its website, the Company describes mineralization in respect of certain of its mineral properties based upon certain reports made available to the Company and the Company also posted certain published third party reports on its website containing similar information. In particular, these materials describe estimates of potential mineral tonnage, grades and recoverable copper estimates which could be construed as mineral resources or mineral reserves under NI 43-101, and disclose projections of annual production, mine life, net income, returns and costs and targets which could be construed as a preliminary assessment under NI 43-101. None of this information is supported by a NI 43-101 technical report in respect of any of the Company's properties and the information is disclosed in a manner not in compliance with the disclosure requirements of NI 43-101 including the effective date, cautionary statements, key assumptions, parameters and methodologies used to estimate resources or reserves.

In addition, these materials did not identify and disclose the relationship to the Company of any qualified person who would ordinarily have been required to prepare or supervise the preparation of the technical information disclosed in such materials.

Accordingly, the Company hereby retracts all such information and none of this information should be relied upon in any manner by any person. In particular:

- In the Company's January 24, 2008 press release, the Company referred to historical drill results and other related information in respect of its La Guanaca property which could be construed as mineral resources or mineral reserves. The La Guanaca property had not been determined to contain any mineral resources or reserves under NI 43-101, and there was no basis for any economically viable mineral deposit on the property, nor had the Company prepared and filed a NI 43-101 technical report to support this information. Accordingly, this information was not compliant with the technical disclosure requirements of NI 43-101 and the Company hereby retracts this information, none of which should be relied upon in any manner by any person.

- The Company posted on its website three research reports (the Paladin Reports), authored by Michael Daykin, BSc. Eng., Research Analyst, on behalf of Paladin Capital Markets Inc., an independent, third-party broker-dealer located in Toronto, Ontario, Canada. The Paladin Reports are dated May 12, 2008 (the May Report), June 4, 2008 (the June Report), and July 8, 2008 (the July Report).

The May Report discusses expected combined oxide/leachable targets of 1 billion pounds of recoverable copper, and proceeds to identify the projects which constitute these targets. The June Report sets forth Mr. Daykin's observations on certain of the Company's properties based on a visit to the properties. The July Report refers to the Company having strengthened the potential of its copper oxide resource base and that management's revised resource estimate potential for its oxide copper portfolio totals in excess of 1.55 billion pounds. The Paladin Reports also refer to potential mineralization and set out anticipated production and certain projected economics of the Company's oxide program, including net income, costs and returns. However, none of the Company's properties had been determined to contain any mineral resources or reserves under NI 43-101, and there was no basis for any economically viable mineral deposit on any of these properties, nor had the Company prepared and filed a NI 43-101 technical report to support this information. Accordingly, this information was not compliant with the technical disclosure requirements of NI 43-101 and the Company hereby retracts this information, none of which should be relied upon in any manner by any person.

Furthermore, certain of the properties described in the Paladin reports were in the process of being acquired and were not owned by the Company at the time the Paladin reports were issued. For example, the Company had entered into letters of intent to acquire the El Corral/La Mofralla property and the Venapai property (previously referenced as the Venado property as the property is located northeast of Copiapo in Region III of Chile), and had entered into discussions in respect of certain other properties where the terms of purchase were being considered, and in some cases offered, but no formal purchase documents were executed:

- The Vista Hermosa Project (Chile Region IV) was identified as in the final stages of being acquired when the Paladin reports were issued. The Company and the owner of Vista Hermosa had numerous discussions and meetings regarding this subject, including site visits, the exchange of detailed technical information and the proposal of acquisition terms by the owner. However, the Company ultimately determined not to pursue this property because the project owner's terms were too financially onerous under then-current market conditions.

- The El Corral/La Mofralla property (Chile Region III) was identified as in the final stages of being acquired when the Paladin reports were issued. The Company executed Letters of Intent with Gareste, Ltda. ("Gareste"), the single owner and vendor, to acquire these projects. Gareste, a private Chilean entity, is controlled by a Director of the Company. The concession titles for these properties were transferred to the Company's Chilean subsidiary in October of 2008.

- The Bertha Salvadora property (Chile Region III) was identified as in the final stages of being acquired when the Paladin reports were issued. The Company and the owner of Bertha Salvadora had numerous discussions and meetings regarding this subject, including the exchange of technical information. Subsequently, however, the Company determined not to pursue this property because the project owner's terms were too financially onerous under then-current market conditions.

- The San Enrique project (Chile Region III) was identified as in the final stages of being acquired when the Paladin reports were issued. The Company and the owner of San Enrique had discussions regarding this subject. Subsequently, however, the Company determined not to proceed with the acquisition from the then-current owner, and Gareste filed mineral concession applications over this property overlapping those of the owner. Gareste was informed that as of January 19, 2009, its application for a 100 hectare exploitation concession covering the core of the San Enrique mineralization has been granted. Gareste and the Company have held discussions in connection with the acquisition of this property and intend to execute a Letter of Intent which contains acquisition terms typical of all earlier transactions between the parties (i.e. title transfer for shares of the Company plus a royalty interest).

- The San Miguel property (Chile Region III) was identified as in the final stages of being acquired when the Paladin reports were issued. The Company and the owner of San Miguel had numerous discussions and meetings regarding this subject, including the exchange of technical information. Subsequently, however, the Company determined not to pursue this property due to finances.

- The La Gitana property was identified as in the final stages of being acquired when the Paladin reports were issued. The Company and the owner of La Gitana had discussions regarding this subject. Subsequently, however, the Company determined not to pursue this property due to finances.

- The Venapai property was identified as in the final stages of being acquired when the Paladin reports were issued. The Company executed a Letter of Intent with Gareste, the owner of Venapai, to acquire this project. The concession titles for this property were transferred to the Company's Chilean subsidiary in October of 2008.

- The Paladin Reports also include references to recoverable copper, anticipated production, projected economic targets, including net income and projected returns, costs and targets, which may be considered a preliminary assessment under NI 43-101. However, none of the Company's properties have been determined to contain any mineral resources or reserves and, accordingly, this information was not compliant with the technical disclosure requirements of NI 43-101 and the Company hereby retracts this information, none of which should be relied upon in any manner by any person.

- None of the Paladin Reports identifies and discloses the relationship to the Company of a qualified person under NI 43-101 required to prepare or supervise the preparation of the technical information being disclosed, as required by NI 43-101. Although the reports identify Mr. Daykin as the preparer of the reports, he was not a qualified person pursuant to NI 43-101. There was no NI 43-101 technical report prepared by a qualified person under NI 43-101 in respect of any of the Company's material mineral properties. Accordingly, none of the Paladin reports should be relied upon in any manner by any person.

Upon receipt of notification from the BCSC, the Company immediately removed all materials from its website that may not be compliant with the technical disclosure requirements of NI 43-101 and has otherwise amended its website to delete all such disclosure.

The Company's material projects

The Company's material mineral properties currently are the La Guanaca property, the El Corral/La Mofralla property and the Venapai property, each of which is located in Chile. The Company also owns the Carrera Pinto Carrizal property and Cerro Blanco property, both of which are located in Chile, as well as the Tenospa and Tonalia properties located in Peru, none of which are currently considered material to the Company as no material amount of exploration work has been undertaken on any of these properties by the Company. Other than the La Guanaca property in Chile, which is leased for a period of five years, the Company owns a 100% interest in its currently owned properties.

The Company is in the process of preparing NI 43-101 technical reports for each of its La Guanaca, El Corral/La Mofralla and Venapai properties. These reports will be filed with the BCSC through SEDAR and will be available at www.sedar.com.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and reviewed by John E. Hiner, Reg. Prof Geologist, a QP under NI 43-101.

About Pacific Copper Corp.(OTCBB:PPFP)

The Company is a mineral exploration company participating in known mineral producing regions in South America. The Company is focused on the exploration of its projects in Chile and Peru.

Stock Exchange Information:

OTCBB Symbol: PPFP

CUSIP #69412U 10 0

Safe Harbor Statement

Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of applicable Canadian securities laws, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company's filings with the SEC such as the ability to obtain additional financing, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Contact Information

  • Pacific Copper Corp. - North America
    Andrew Brodkey
    Investor Relations
    Toll Free: 1-877-306-7979
    Website: www.pacificcopper.com