Plexmar Resources Inc.
TSX VENTURE : PLE

Plexmar Resources Inc.

February 10, 2012 12:55 ET

Plexmar Resources Inc.: Update

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 10, 2012) - Plexmar Resources Inc. (TSX VENTURE:PLE) wishes to update it shareholders on the following:

Bolsa del Diablo project

For the past 6 months, Trece Barras representatives have been very active in the community and have gathered a lot of support for the proposed social program and the economic proposal put forward in return for the surface access rights. The Social enterprise (announced on August 26, 2011) has been incorporated and the community will officially become shareholders in the coming weeks. Funding proposals for the enterprise will be presented to specialized social funds. The social enterprise concept has received strong support from community stakeholders.

The Piura regional government is on the verge of adopting new policy instruments to fiscalize informal and illegal mining activities in the Piura department. Up to now the lack of regulation was a constraint for the formalization of artisanal mining activity. The adoption of the policies will help reduce the negative impacts on the environment and safeguard the integrity of the people dedicated to it. Regulations will be adopted for the control of the mining activities, the transport of mined ore and controlled substances and for the establishment of coercive measures and economic sanctions in the event of non-compliance. The Company welcomes and support these awaited policies as the fiscalization of the informal mining sector will help the Company reach a surface access agreement with the local communities.

Malin Plant

J&M Business has recently signified its interest to sell its 50% interest in the partnership to Plexmar. Plexmar's subsidiary and J&M Business, the two partners in the joint venture operating company are about to start out an accounting review of all investments, expenditures, costs and revenues incurred to date in order to define the price to terminate the agreement. The Malin plant has been operating sporadically for the past 12 months.

The Malin plant is a custom mill processing plant located near the town of Trujillo and is being operated through a 50-50 joint venture with J&M Business SAC. The Malin plant is owned 100% by Minera San Miguelito SAC, Plexmar's wholly owned Peruvian subsidiary The operating joint venture agreement was signed in December 2010 and is valid until December 2015.

Ecuador

On December 5th 2011, Kinross Gold Corp. (Kinross) announced an agreement in principle with the Government of Ecuador for the development and exploitation of Ecuador's largest gold deposit, Fruta del Norte (FDN).

The news release disclosed that a non-binding agreement in principle has been reached regarding key fiscal and legal parameters for the exploitation of FDN. While a number of additional steps are required to conclude a final and binding agreement, this is a very important milestone in the ongoing advancement of Ecuador's mining sector. The agreement with Kinross is expected to form a template for future agreements with other companies for the development of Ecuador's substantial mineral resources. Key objectives of the agreement are to develop Ecuador's mineral resources in a socially responsible manner, to the benefit of all stakeholders.

This is a very positive and significant development for all mining companies and mining investors in Ecuador. The Company has contacted government officials to initiate discussions to recover or obtain new concessions covering all or part of the prospective ground it held in Ecuador before the mining mandate of April 2008. Plexmar held a land position in excess of 900 km2 around Kinross's Fruta del Norte deposit and Corriente's Mirador deposits in eastern Ecuador.

Shares consolidation and name change

The Company announces that it will seek shareholders approval to consolidate its shares and a name change. The proposed consolidation of Plexmar's issued and outstanding common shares will be implemented on the basis of one post-consolidation share for up to fifteen pre-consolidation shares.

The name change and consolidation are subject to TSX Venture Exchange as well as shareholder approval and will be considered by shareholders at the annual special meeting of the Company at a date to be announced.

"We believe that this share consolidation will improve the Company's structure and enhance our ability to attract funding from institutions, advance our project portfolio and take over the operations at the Malin plant." said Guy Bédard, President and CEO.

As of February 1, 2012 the Company had 228,227,223 common shares issued and outstanding. If approved and implemented, the consolidation will occur simultaneously for all of the Company's common shares and will affect all shareholders uniformly. Management expects that the ratio for the consolidation will be fixed and the consolidation implemented as soon as practical following the meeting. Assuming the proposed consolidation occurs at a ratio of 1:15, the Company's outstanding shares will be reduced to 15,015,148 Common Shares. The consolidation will not affect any shareholder's percentage ownership interest in the Company, except to the extent that the consolidation would otherwise result in any shareholder owning a fractional share. No fractional shares will be issued, but will instead be rounded down to the nearest whole number.

The proposed consolidation and name change will be further detailed in an Information Circular that will be distributed to shareholders in connection with the annual special shareholders meeting. The meeting date will be scheduled in the coming weeks. A copy will also be made available electronically at www.sedar.com.

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.

PROFILE Plexmar is a junior company focused on precious metals in Peru
PROPERTIES Gold : Peru: Oro Del Norte, Marilia, Bolsa Del Diablo,
CORPORATE INFO 228 M shares outstanding
Symbol: PLE (TSX-V)

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release".

Contact Information

  • Plexmar Resources Inc.
    Guy Bedard
    President
    418 658-6776