Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

March 01, 2011 09:10 ET

Pershimco Announces Option Agreement With Mazorro Resources for the Figuery Property in Abitibi, QC

ROUYN-NORANDA, QUEBEC--(Marketwire - March 1, 2011) - PERSHIMCO RESOURCES INC. (the "Company" or "Pershimco") (TSX VENTURE:PRO) (FRANKFURT:BIZ) today announces that it has entered into an option agreement with Mazorro Resources Inc. (TSX VENTURE:MZO) ("Mazorro") relating to the Figuery property in the Figuery Township of Quebec and also a second group of claims in the limits of the Landrienne and Duverny Townships (the "Figuery Property") comprising a total of 55 claims. The Figuery Property is contiguous to the eastern boundary of Agnico-Eagle's Newconex deposit and covers part of the Porcupine-Destor fault, one of the principal gold bearing structures in Québec and Ontario.

Under the terms of the agreement, Mazorro may acquire up to 51% of Pershimco's right, title and interest in the Figuery Property (the "First Option"). Mazorro is required to provide total cash payments of $250,000, a total of 1,000,000 common shares of Mazorro and has committed to conduct exploration of $1,000,000 over a period of two years from the completion of a definitive option agreement as follows:

Date Cash Payment
($)
Mazorro's Common Shares
(#)
Work Expenditures
($)
On signing of the Definitive Agreement 75,000 500,000 --
1st anniversary of the Definitive Agreement 75,000 500,000 300,000
2nd anniversary of the Definitive Agreement 100,000 -- 700,000
TOTAL 250,000 1,000,000 1,000,000

Following the exercise of the First Option, Mazorro shall have the option to acquire an additional 24% undivided interest in the Figuery Property (the "Second Option"), thereby acquiring a total undivided interest of 75%, by making additional cash and share payments valued at a total of $1,500,000 and by conducting additional exploration of $4,000,000 over another two year period including a feasibility study. Mazorro shall pay $500,000 of the required payments for the Second Option in common shares of Mazorro. Details of consideration under the Second Option are as follows:

Date Cash Payment
($)
Mazorro's Common
Shares
Work Expenditures
($)
On the Second Option Notice Date 500,000 $500,000 (1) --
1st anniversary of Second Option Notice Date 500,000 -- --
2nd anniversary of Second Option Notice Date -- -- 4,000,000
TOTAL 1,000,000 $500,000 4,000,000

(1) Number of common shares to be determined based upon a 15% discount to the average closing price of Mazorro common shares on the TSX Venture Exchange for the 10 day period preceding the written notice, subject to the minimum price permitted by the policies of the TSX Venture Exchange and subject to any required corporate and TSX Venture Exchange approval, as applicable.

During the First Option and Second Option periods, Pershimco will act as the operator of the Figuery Property.

"Pershimco is very pleased to start a new partnership with Mazorro to explore and develop properties in the Abitibi. Our local geology team has the advantage of having worked in this region for years. As our main Québec project, Courville is progressing rapidly and we also want to advance strategic properties in the Abitibi region with dedicated partners", stated Mr. Alain Bureau, President and CEO of Pershimco.

The transaction disclosed herein is subject to certain conditions, including: (i) final board of director approval of each party; (ii) the receipt of any required regulatory approvals including that of the TSX Venture Exchange; and, (iii) completion of a definitive agreement no later than March 18, 2011.

The Figuery Base and Precious Metals Property

The Property is located in the south-central Quebec segment of the Abitibi Greenstone Belt (the "Belt") which extends for over a NE-SW direction for over 900 kilometers from Chibougamau (Quebec) to Timmins (Ontario).

The Belt is made up of ultramafic to felsic volcanics, clastic sediments and tonalitic and granitic, intrusions, by major deformation corridors such as the gold-bearing Porcupine-Destor and Larder Lake-Cadillac Breaks. The Porcupine-Destor Break runs through the Property as it extends for over 350 kilometres from Timmins to east-northeast of Val-d'Or (Quebec). Major gold deposits such as the Hollinger, McIntyre, Dome, Lightning Zone, Holloway in Ontario and Beattie in Quebec are associated within this deformation corridor. The Property covers the intersection of the Porcupine-Destor Break and the Macamic Fault where there are many precious and base metals occurrences with Historical Mineral Resources.

Agnico-Eagle Mines Limited owns the Newconex Occurrence located immediately to the west of the Property. In 1986, Roscoe Mining Services Inc. estimated the resources at Newconex of 393,523 tons grading 4.97% Zinc, 40.45 g/t Silver and 0.35% Copper. To the east, the Landome Occurrence, held by Cogitore Resources Inc., hosts a mineral reserve of 251,304 tons grading 2.5% Cu and 2.0% Zn based on 1975 estimates. The mineral resources and mineral reserves are deemed historical and should not be relied upon. A Qualified Person has done evaluated these Historical Mineral Resources and Reserves to convert these estimates into current National Instrument ("NI") 43-101 Mineral Resources and Mineral Reserves, and it is uncertain if any future work would convert these estimates to compliant NI 43-101 Mineral Resources and Mineral Reserves.

The information contained in this news release has been prepared, reviewed and approved by Mr. Jean Lafleur, M. Sc., P. Geo., Director and Technical Advisor to the President and CEO at Pershimco, a Qualified Person under NI 43-101 regulations.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian-based resource and exploration corporation listed on the TSX Venture Exchange (symbol PRO.V) and the Frankfurt Exchange (symbol BIZ). The Company holds several mining properties in Canada and South America including the recently acquired Cerro Quema advanced project in Panama and the Courville Gold Project, in the Val-d'Or Gold Mining Camp. The Company is managed by skilled, reputable people with extensive mining exploration and development experience. The Pershimco Team and our investors are the key to our success.

The Corporation's documents are available on www.sedar.com.

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

Neither the 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 news release. Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

Contact Information

  • Pershimco Resources Inc.
    Alain Bureau, P. Eng.
    President and Chief Executive Officer
    819-797-2180
    ressources@pershimco.ca