Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

September 21, 2010 11:08 ET

Pershimco Files its NI-43-101 Technical Report in Relation With the Definitive Acquisition of All Shares of Minera Cerro Quema, S.A.

ROUYN-NORANDA, QUEBEC--(Marketwire - Sept. 21, 2010) - Pershimco Resources Inc. (the "Corporation" or "Pershimco") (TSX VENTURE:PRO) (FRANKFURT:BIZ) is pleased to announce it has received the final approval of the TSX Venture Exchange regarding the previously announced acquisition of all interests in the Cerro Quema mining project (the "Project") held by Minera Cerro Quema, S.A. Within the scope of this transaction, the Corporation has released its National Instrument 43-101 ("NI 43-101") compliant Technical Report on the Project, located in the Azuero Peninsula in Panama, entitled "Technical Report on the Cerro Quema Project, Panama" and dated September 10, 2010 (the "Technical Report"). It is also available on the Corporation's website at www.pershimco.ca.

The Technical Report, filed today on SEDAR, was prepared by Scott Wilson Roscoe Postle Associates, Inc. ("Scott Wilson RPA"), a globally recognized leader in the exploration and mining industry, having worked on a large repertoire of projects for major and junior mining companies in a variety of base and precious metals (www.scottwilsonmining.com). The Technical Report highlights a mineralized trend hosted in an east-west belt of dacites and andesites hosting significant gold mineralization.

The Project contains an historic estimate, completed by Campbell Resources in 1996, of 8.733 million tonnes, grading 1.16g/t Au and containing 328,000 oz of gold. The 1996 data was subsequently re-evaluated as part of a feasibility study in 2002, resulting in a non-compliant NI 43-101 resource and reserve. The Technical Report states: (i) the geology and mineralization of the deposit are uncomplicated and should facilitate efficient mine planning and grade control; (ii) there is potential to add resources through exploration, (iii) there is potential to add resources by adding the silver and testing possible copper potential below the oxide-sulphide interface; and (iv) the proposed mine design and mine method are appropriate for the deposit. The historical estimates are relevant in that they were estimated using industry standard procedures carried out by experienced professionals at the time. However, the estimates should not be considered reliable as the data has not been verified. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources or mineral reserves, and Pershimco is not treating the historical estimate as current mineral resources or mineral reserves as defined in sections 1.2 and 1.3 of NI 43-101.

The Corporation successfully proceeded with the closing of the acquisition of all the shares of Minera Cerro Quema, S.A. The Purchase Price is payable as follows: (i) the payment of $1,560,000 at closing; (ii) the issuance of 8,500,000 common shares of Pershimco at a price of $0.35, 47% of which are subject to a 24 month contractual non-sale period starting at closing and 100% of which are subject to a mandatory 4 month holding period; (iii) the issuance of 2,250,000 warrants entitling the holder thereof to purchase one common share at $0.45 for the first year and increasing by $0.20 per year during the 4 subsequent years, the warrants and the common shares issuable upon exercise of the warrants being subject to a mandatory 4 month holding period; (iv) the payment over a period of 8 months starting in March 2011 of US$1,800,000 as a balance of the Purchase Price; and (v) the assumption of a maximum of US$952,655 payable to the service providers who continue to actively participate in the Project.

Forward-Looking Statements

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to the Corporation's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding the Corporation's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which the Corporation believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what the Corporation currently expects. These factors include technological changes, changes in market and competition, governmental or regulatory developments, general economic conditions, the development of new services, the enhancement of existing services, and the introduction of competing products having technological or other advantages, many of which are beyond the Corporation's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date.

About Pershimco Resources Inc.

Pershimco Resources Inc. is a Canadian-based resource exploration corporation holding strategic gold and base metal properties located in Quebec, Canada and in Latin America, with a goal of efficiently advancing these properties towards feasibility and development.

The technical information in this news release was approved by Mr. Jean Lafleur, P. Geo., Director of Pershimco Resources Inc. and Mr. Wayne. W. Valliant, P. Geo., from Scott Wilson RPA. Both individuals are Qualified Persons under NI 43-101.

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

Neither 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 release.

Contact Information

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