Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

October 15, 2008 08:00 ET

Pershimco Announces Closing of First Tranche of Private Placement

ROUYN-NORANDA, CANADA--(Marketwire - Oct. 15, 2008) - PERSHIMCO RESOURCES INC. ("Pershimco" or the "Corporation") (TSX VENTURE:PRO)(FRANKFURT:BIZ) is pleased to announce the closing of the first tranche of a non brokered flow-through private placement for a total of C$ 250,000 to a number of individual investors for a subscription price of C$ 1,000 per unit, that is C$ 0,25 per common shares, subject to the final approval of the TSX Venture Exchange and of any other securities authority.

Each unit will consist of 3,200 flow-through common shares, 800 non-flow-through common shares and 4,000 non-flow-through common share purchase warrants. Each warrant will entitle the holder thereof, during a period of 24 months from the date of issuance of the warrant, to purchase one common share at an exercise price of C$ 0.35 per common share. Each common shares issued will have a mandatory 12 months holding period.

The proceeds of the placement will allow Pershimco to extract a minimum of 2,500 tons bulk sample from the Thibodeau Intrusive Complex (the "TIC") on its wholly owned Courville Gold Project, in the Val-d'Or/Malartic Mining Camp. The bulk sample follows one of the recommendations made by Scott Wilson Roscoe Postle Associates Inc. ("Scott Wilson RPA") in a Preliminary Technical Progress Report (the "Report") that outlined an optimization plan for the eventual definition of Mineral Resources estimates compliant to National Instrument (NI) 43-101 and the development of the TIC (refer to the Pershimco news release dated September 26, 2008). This work also forms part of the feasibility study on the gold bearing silica flux potential of the TIC. The flux material is used in the smelting process. Pershimco has already received positive feedback from an end user smelter of the flux material, which has also shown a great interest in the study. Blasting, crushing and transport of the material will take place over the next few days.

Mr. Alain Bureau, P. Eng., President and Chief Executive Officer of Pershimco states " Pershimco's strength is its shareholders, investors and the regional service suppliers, all have confidence in the Courville Project. Despite the on-going international financial storm, we intend on producing from our CIT project and potentially realize a second gold pour in 2008. " . Pershimco considers its share price to be undervalued considering the quality and advancement of its projects.

Mr Daniel Lapointe, M.Sc., P. Geo., will supervise the work program proposed by Scott Wilson RPA for Pershimco. The information contained in this news release has been reviewed and approved by Mr. Jean Lafleur, M.Sc., P. Geo., the Company's Qualified Person under NI 43-101 standards.

On behalf of the Board of Directors,

Alain Bureau, President and CEO

About Pershimco Resources

Pershimco is a Canadian-based resource exploration corporation which holds strategic properties located in State of Chihuahua, Mexico and in Quebec, Canada. Pershimco's strategy is to advance its mid-stage exploration properties towards NI 43-101 compliant Mineral Resources.

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

The Corporation's public documents may be accessed at www.sedar.com.

The TSX Venture Exchange (TSX-V) does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements reflecting the Corporation's objectives, estimates, expectations and the impact of acquisitions on the Corporation's financial performance. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from the Corporation's projections or expectations.

Contact Information

  • Pershimco Resources Inc.
    Alain Bureau, P. Eng.
    President and CEO, Director
    514-357-0498
    www.pershimco.ca