Pershimco Resources Inc.
TSX VENTURE : PRO
FRANKFURT : BIZ

Pershimco Resources Inc.

March 12, 2015 10:47 ET

Pershimco's Board Welcomes Former Rio-Tinto Mining Engineer Angelina Mehta and Grants Restricted Shares Units

Provides Update on Cerro Quema, Panama Operations

ROUYN-NORANDA, QUÉBEC--(Marketwired - March 12, 2015) - Pershimco Resources Inc. (the "Company" or "Pershimco") (TSX VENTURE:PRO)(FRANKFURT:BIZ) is pleased to welcome Angelina Mehta, who will be succeeding Andrew Pullar in filling Sentient's seat on the Board of Directors.

Angelina Mehta joined Sentient in 2013 as part of their Montreal team. She holds a Mining Engineering degree and a MBA from McGill University. She gained operational and technical experience with IOC, a Rio Tinto's subsidiary. She also acquired valuable financial experience through her roles with BMO Financial Group in Toronto, Lafarge and CN in Montréal. She later rejoined IOC in a corporate resource development role to evaluate mine expansions. Angelina is a member of the advisory board of McGill University's mining program, a founding member of Women in Mining (WIM) Montreal and recently joined the WIM Canada board. She is a member of CIM and a professional engineering registered in Quebec.

"At this stage of development of the Cerro Quema project, we definitely think Angelina is the right person to actively contribute from her experiences in advancing towards production to the success of the project" commented Alain Bureau, President & CEO of Pershimco.

Project Update:

Since Pershimco's last AGM on October 24, 2014, the Company has maintained a steady pace in the development of the Cerro Quema project and reached numerous milestones:

  • Acquired all Surface Rights
  • Filed the Environmental & Social Impact Study
  • Completed payment on the buy-back of all royalties on the Cerro Quema project
  • Initiated detailed engineering
  • Discovered porphyry style intrusive and indicators at depth

Pershimco has been pleased with the recent announcements by the Panamanian government in support of the development of the mining industry, and recognizing the potential and the positive economic impact mining will have in the Panamanian economy. The mining sector is one of the four key sectors included in the government's economic growth strategy.

Furthermore, following the annual meeting, as well as receiving authorizations from all relevant authorities, the Company has issued 3,595,000 Restricted Share Units ("RSUs") to Board members and to the senior management team. Vesting of the RSUs is subject to a number of performance milestones associated with the advancement of the Cerro Quema Gold Project, including receiving the environmental and construction permits for 10,000 tpd process plant and the first gold pour. The vesting is only available to active board members and senior management retaining a minimum position in the trading stock of the company. Pershimco's senior management, Board members and Affiliates currently hold a significant position in the Company's shares and intend to continue to increase their position through time. The RSU will expire in three years.

Pershimco Resources also informs its shareholders that Mr. Claude Arcand will be replacing Mr. Roger Bureau as Chairman of the Board. Mr. Roger Bureau, founder of the Company, will dedicate his time to other professional projects and will remain on the Board as director.

About Pershimco Resources Inc.

Pershimco Resources Inc. (TSX VENTURE:PRO)(FRANKFURT:BIZ) is a mineral exploration and development company with a near-term gold oxide production scenario and a copper-gold porphyry target at its 100%-owned Cerro Quema Project in Panama. Cerro Quema's concession boasts paved road access, no indigenous groups and the most favorable climate in the country. Based on the results from a recently released pre-feasibility study, the Company's extraction-permitted gold oxide project has a pre-tax NPV of $165 million US with a pre-tax internal rate of return of 46.8% ($110 million US after tax with an after-tax rate of return of 33.7%), supported by great recovery rates (86%) and lowest quartile all-in sustaining cash cost of $631/oz. Led by a skilled management team with a proven track record of building successful operating mining facilities in the Americas, Pershimco's project is scheduled to be in production in 2016. Additionally, the Cerro Quema Project has proven to have significant exploration upside with resource expansion potential in over 12 oxide targets identified along a 17km trend as well as porphyry indicators along a 12km strike length that suggests a copper-gold porphyry system is at depth. With strong shareholder support, Pershimco aims to achieve cash flowing status in the near term to continue uncovering the value of Cerro Quema. Please refer to the Cerro Quema Project - Pre-Feasibility Study on the La Pava and Quemita Oxide Gold Deposits, available on the company's website, and Technical Report pursuant to National Instrument 43‐101 dated August 15, 2014, filed on SEDAR on August 22, 2014 as well as to the press release of July 8, 2014.

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

Please visit the Company'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" statement.

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