Plains Creek Phosphate Corporation
TSX VENTURE : PCP

Plains Creek Phosphate Corporation

May 30, 2011 15:43 ET

Plains Creek Announces Favourable Terms for Termination of Non-Core Dora Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 30, 2011) - Plains Creek Phosphate Corporation (the "Company") (TSX VENTURE:PCP) is pleased to announce that the Company is focusing on its fundamental core property, the Farim Phosphate Project in Guinea Bissau, West Africa and has agreed to favourable terms to terminate its option on the non-core Dora Gold Project. The Dora Gold Project was the property of merit for the predecessor company, Resource Hunter Capital Corp. By way of an Option Termination Agreement dated and effective Thursday, May 19, 2011 (the "Option Termination Agreement"), the Company has agreed, subject to approval of the TSX Venture Exchange, to terminate its Option Agreement with Appleton Exploration Inc. ("Appleton") dated April 30, 2010 with respect to the Dora Gold Project near Merritt, British Columbia (the "Option Agreement").

The Option Termination Agreement requires a one time payment of $50,000 to Appleton, as well as the issuance of 250,000 Units (each Unit comprised of one common share and one common share purchase warrant of Plains Creek exercisable for 24 months after issuance having an exercise price equal to the greater of (i) the weighted daily average trading price of the common shares of Plains Creek for the 15 days prior to the issuance of the Units, and (ii) the minimum allowable exercise price in accordance with the policies of the Exchange) at a deemed price of $0.10 per Unit. The Option Termination Agreement is subject to approval of the TSX Venture Exchange, which has been sought by the Company.

The Company wishes to maximize shareholder value by focusing the Company's efforts on the Farim Phosphate Project in Guinea Bissau, West Africa. The termination of the Option Agreement pursuant to the Option Termination Agreement represents a divesting of a non-core property at a discount relative to the termination conditions to which the Company would have otherwise been exposed under the Option Agreement.

ON BEHALF OF THE BOARD

Carson Phillips, Director and Vice-President Corporate Development

Cautionary Statement

Statements in this release may be viewed as forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those projected. There are no assurances the Company can fulfill such forward-statements and the Company undertakes no obligation to update statements. Such forward looking statements are only predictions; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control.

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

  • Plains Creek Phosphate Corporation
    Carson Phillips
    Director and Vice-President, Corporate Development
    (604) 657-5871
    (604) 688-6402 (FAX)
    cphillips@plainscreek.com