Plexmar Resources Inc.

Plexmar Resources Inc.

July 12, 2010 10:26 ET

Plexmar Resources Inc.: Services Contract for Malin Plant

QUEBEC CITY, QUEBEC--(Marketwire - July 12, 2010) - Plexmar Resources Inc. (TSX VENTURE:PLE) has signed a services contract agreement with Iimpul Peru S.A.C. to supply gold bearing ores to the Malin plant gold circuit. On December 2009, J&M Business and Plexmar's Peruvian subsidiary signed a joint venture contract to rehabilitate, operate the plant and to add a gold circuit so as to process gold bearing ores extracted from the Bolsa del Diablo project and from other local sources.

The plant is now ready to operate following the dry runs, testing and adjustments on all of the mill equipments during the month of June. The terms of reference of the Environmental Impact Study of the Malin plant have recently been approved by the Direccion General de Mineria in Trujillo, Peru. The plant can now begin the metallurgical test run for the gold circuit and carry out necessary adjustments and establish the parameters of operation such as consumption of reagents, grind fineness and times of residence.

Iimpul will work closely with J&M Business at the plant to purchase gold ores in the nearby region as well as from Plexmar's concessions in order to operate the plant at the maximum installed capacity, manage the financial resources such as working capital in order to guarantee the continuity of the operation of the plant.

In compensation for the continuous services rendered by Iimpul, Plexmar committed to pay Iimpul, an amount equivalent to $795,710 CND, as success fee, through the issuance of Plexmar common shares; to be delivered according to the two following milestones:

  • Immediately after the gold circuit of the Malin Plant processes no less than 50 metric tons per day for ten (10) consecutive days, Iimpul will receive 50% of the total amount of this services contract.
  • Immediately after the gold circuit of the Malin Plant processes no less than 100 metric tons per day for ten (10) consecutive days, IIMPUL will receive the remaining 50% of the total amount committed for this services contract.

The price of the common shares will be determined at the closing of the Canadian Market the day upon reception of the confirmation that each milestone has been completed to the satisfaction of Plexmar, in accordance with the rules and policies of TSX Venture Exchange and regulatory authorities. 

The Malin Plant will operate through a 50-50 joint venture with J&M Business SAC. The plan now has an installed capacity of 100 tonnes per day to process gold ores. Net income before taxes will be shared on a 50-50 basis with J&M and Plexmar will apply a share of this income to the exploration of its concessions in Peru. Plexmar owns 4 concessions in the vicinity of the Malin Plant and also owns 225 km square of concessions (Bolsa del Diablo) in Northern Peru.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.

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

  • Plexmar Resources Inc.
    Guy Bedard
    418-658-6776 ext.107
    Paradox Public Relations