Pediment Exploration Ltd.
TSX VENTURE : PEZ

Pediment Exploration Ltd.

October 06, 2005 14:37 ET

Pediment Exploration Ltd.: TSX Approves Take-Over of Minera Pitalla S.A. de C.V.; Pediment Closes Placement and Moves to a Tier 2 Listing on the TSX Venture Exchange

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 6, 2005) - Pediment Exploration Ltd. (TSX VENTURE:PEZ) is very pleased to report that the TSX Venture Exchange (the "Exchange") has approved the acquisition by Pediment of 100% of Minera Pitalla, S.A. de C.V. Pediment will issue 5.4 million common shares to the 23 members of El Dragon Minerals LLC, a private Nevada company that currently owns Pitalla. Approximately 2.8 million of these shares are subject to a 3 year "value escrow" agreement. In addition, Pediment may issue an additional 2.5 million bonus shares if more than one million ounces of gold or gold equivalent are discovered on three or fewer Pitalla projects, with at least 500,000 ounces on a single project.

The Exchange has also approved the private placement announced on June 15th, 2005. The placement was increased to 4.4 million units at $0.45 for gross proceeds of Cdn$1.98 million. Each unit consists of one common share and one half of a common share purchase warrant. Each full warrant entitles the holder to purchase an additional share at $0.60 for 18 months and expire on March 29, 2007. In addition, the Exchange approved the conversion of the debentures previously announced on December 16, 2004 and the previously announced shares for debt transaction. All the shares issued as part of the acquisition of Pitalla, the private placement of 4.4 million units and the shares for debt settlement of 350,000 shares are subject to a four month hold period expiring on January 30, 2006.

Completion of the transactions positions Pediment firmly in western Sonora State, prospective for the discovery of gold, silver and copper deposits. This includes a number of projects within the "Mega-Shear Belt" that contains gold and/or silver mineralization in settings similar to that of the Mesquite Mine in southern California, La Herradura Mine in northern Sonora, and a number of other past producing mines within the Belt. The Company believes that this region remains under-explored for the relatively silica poor deposits of Mesquite - La Herradura type that may be hidden beneath overburden and valley cover. Western Sonora State has an arid climate regime within a low relief basin-and-range topography that contains an economy of sparsely populated private ranching that is well suited to geophysical and geochemical surveys that have located significant deposits within similar geological and climate-topographic regimes.

Pediments Exploration team is led by Melvin Herdrick, M.Sc. a professional geoscientist with a distinguished career in exploration including several years as Chief Geologist - Mexico with Phelps Dodge Corp. Pediment is formulating exploration programs for several high impact copper, silver and gold-silver projects that will begin in the coming weeks. Pediment will release overviews, exploration plans and information on geological models and targets for each project as each program is finalized. A Company website with information on Pediment's management, projects and ongoing strategy will be completed shortly.

The Company would also like to clarify the Exchange Notice of October 4, 2005 listing Mr. Moriarty as an Insider. Mr. Moriarty is not an Insider of the Company.

ON BEHALF OF THE BOARD

Mr. Gary Freeman, President

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

Contact Information

  • Pediment Exploration Ltd.
    Gary Freeman
    President
    (604) 628-4418
    (604) 683-6557 (FAX)
    or
    Pediment Exploration Ltd.
    Brad Aelicks
    Director
    (604) 685-6465
    investor@pedimentexploration.com