ROUYN-NORANDA, QUEBEC--(Marketwire - June 6, 2011) - PERSHIMCO RESOURCES INC. (the "Company" or "Pershimco") (News - Market indicators)(FRANKFURT:BIZ) is pleased to announce that it has raised an aggregate gross proceeds of $6,000,000 in a private placement of 12,000,000 class "A" common share of the capital stock of the Company ("Common Shares"). Following an extensive due diligence, the Company signed definitive agreements for non-brokered financing strategic partners, that includes the participation of The Sentient Group ("Sentient"), an independent financial company managing more than US$1.3 billion in natural resources investments, which subscribed for $3,000,000.
The Common Shares will be the subject to a standard 4-month-and-one-day hold period from the date of closing. There are no commissions or finder's fees, nor any warrants tied to the transaction. The transaction is subject to certain conditions, including the final approval from the TSX Venture Exchange.
Mr. Alain Bureau, P. Eng., President and CEO of Pershimco, stated, "We are very proud to have progressed so fast within less than one year of the full acquisition of our Panamanian project. With this financial operation, Pershimco not only fully secured the company financially for its upcoming exploration programs but added strategic partners with strong technical teams."
Pershimco intends to use the net proceeds for its operations in Panama and the final payment linked to the acquisition of its subsidiary, Minera Cerro Quema S. A., as well as for working capital purposes.
Pershimco's Cerro Quema Project
The Cerro Quema mineralization belongs to a system of high-sulphidation, epithermal gold-copper deposits and mineralized zones found in the North American, Mexican, Central American and South American Cordilleras. Targeting criteria along the 17 kilometres trend includes brecciated dacite lapilli tuffs, silica-alunite-clay alteration, iron oxides after pyrite, and advanced argillic alteration halos These strongly silicic altered rocks are typical of the residual quartz (vuggy) occurences that are associated with gold-copper high-sulphidation deposits. Advanced argillic alteration minerals at Cerro Quema include dickite, alunite, and at lower elevations, pyrophyllite. Pershimco has initiated a PIMA survey program to help map out the alteration patterns associated with the gold and copper mineralization.
Pershimco previously announced positive results of the Preliminary Economic Assessment ("PEA") study on the LaPava Target performed by Scott Wilson RPA. The PEA study using the current Indicated Mineral Resources of 7,231,000 tonnes grading 1.10 g/t gold (0.35 g/t gold cut-off grade) shows, for LaPava pit only, an internal rate of return ("IRR") for the project of 69%. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The ongoing exploration campaign has the potential to enhance the project's economics if it increases the compliant Mineral Resources and production profile knowing that the LaPava Target gold mineralization is a viable project by its own with the current Mineral Resource estimates. Additional exploration could result in higher Net Present Value and extend the mine life. This PEA has an accuracy of +/- 30%, which is considered industry standard for preliminary capital and operating cost estimates.
The information contained in this news release has been reviewed and approved by Mr. Jean Lafleur, M. Sc., P. Geo., VP Exploration and Director, Pershimco's Qualified Person under NI 43-101 regulations.
About Pershimco Resources Inc.
Pershimco Resources Inc. is a Canadian-based resource and exploration corporation listed on the TSX Venture Exchange (symbol PRO.V) and the Frankfurt Exchange (symbol BIZ). The Corporation holds several mining properties in Canada and South America including the recently acquired Cerro Quema advanced project in Panama and the Courville Gold Project, in the Val-d'Or Gold Mining Camp. The Corporation is managed by skilled, reputable people with extensive mining exploration and development experience. The Pershimco Team and our investors are the key to our success.
The Corporation's documents are available on www.sedar.com
Please visit the Corporation'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" statements.
