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Re: News Release - Friday, November 13, 2009
First Point Options the Decar Nickel Iron Alloy Property to
Cliffs Natural Resources Exploration Inc., and Announces Private
Placement of First Point Shares to Cliffs
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This news release, required by applicable Canadian laws, is not for
distribution to U.S. newswire services or for dissemination in the U.S.
Peter Bradshaw, Ph. D., P. Eng., President & CEO of First Point
Minerals Corp (FPXV:TSXV) ("First Point" or the "Company"), is very
pleased to announce that First Point has entered into a option
agreement whereby Cliffs Natural Resources Exploration Inc. ("Cliffs"),
a wholly-owned subsidiary of Cliffs Natural Resources Inc., and its
wholly-owned Canadian exploration subsidiary have been granted an
option to earn an initial 51% interest in a joint venture to advance
the Decar nickel alloy property in central BC. At the same time, Cliffs
has agreed to subscribe to a private placement of First Point shares.
Cliffs' parent company, an international mining and natural resources
company, operates iron ore and coal mines in North America, South
America and Australia. It has extensive operating experience with
large scale magnetic and gravity processing, both of which could be
directly applicable to the dense, highly magnetic nickel iron alloy
First Point has identified at Decar. Cliffs also maintains a major
metallurgical testing facility, and as part of its due diligence,
undertook initial metallurgical testing of the Decar nickel alloy
mineralization.
Under the terms of the option agreement, Cliffs can earn an initial 51%
interest in a joint venture on the Decar property by spending
US$5million on the property in four years, of which US$1million is a
firm commitment in year one. First Point will manage the initial
exploration activities.
Upon Cliffs exercising its option, the parties will form a joint
venture, with Cliffs having an initial 51% participating interest and
First Point holding a 49% participating interest. In addition, First
Point will have a 1% net smelter return royalty interest in all
products produced from the Decar property. Cliffs may increase its
interest in the joint venture to 60% by completing a scoping study, to
65% by completing a pre-feasibility study, and to 75% by completing a
feasibility study in a form acceptable to lending institutions. The
feasibility study will, amongst other things, include a full report in
conformity with Canada's National Instrument 43-101 standards. Should
either party's participating interest in the joint venture be reduced
to less than 10%, its interest will automatically be converted to a 1%
net smelter return royalty interest. If First Point is the converting
party, it will have, in the aggregate, a 2% net smelter return royalty
interest.
Cliffs has agreed to subscribe in a private placement for 14,376,069
common shares of First Point at a price of C$0.09 per share for a total
investment of C$1,293,846, equal to 19.9% of the issued shares of First
Point. The private placement is subject to acceptance by the
regulatory authorities and the First Point shares issued will be
subject to a "hold" period of four months and one day from closing.
Cliffs will have the right to appoint one person to First Point's Board
of Directors.
The target at the Decar property in central BC, as previously
announced, is a large bulk tonnage nickel deposit suitable for open pit
mining on the same scale as several of the large open pit copper mines
operating in British Columbia. The nickel is in the form of a
nickel-iron alloy. The alloy itself is 75% nickel, 25% iron, contains
no sulphur and is very magnetic, quite dense, and widely disseminated.
These characteristics are very favourable for bulk tonnage open pit
mining, and because of the absence of sulphur, the production of a
concentrate that could be sold directly to steel mills without
incurring smelting charges could significantly enhance the economics of
a mining operation at Decar.
Peter Bradshaw, President and CEO of First Point, commented "Cliffs
brings to the project extensive development and operating expertise of
large open pit mines. In particular, Cliffs' large metallurgical
research lab and its operating experience with large scale magnetic
separation can be directly applicable to the Decar project. We are
very much looking forward to working with Cliffs on the Decar project."
Further information on this target type and maps of Decar are available
on the Company's website
at:http://www.firstpointminerals.com/i/pdf/Decar_Presentation.pdf.
Peter Bradshaw, Ph.D. is the Qualified Person as defined by National
Instrument 43-101 and is responsible for the contents of this release.
First Point Minerals Corp. is a Canadian base and precious metal
exploration company focused on the Americas. For more information,
please view the Company's website at www.firstpointminerals.com
or phone Peter Bradshaw, President and CEO, or Ron Britten,
Vice-President of Exploration, at (604) 681-8600.
FIRST POINT MINERALS CORP.
"Peter M.D. Bradshaw"
Peter M.D. Bradshaw, President - TSX Venture Exchange: FPX
Suite 906 - 1112 West Pender Street
Vancouver, BC Canada V6E 2S1
Tel: 604/681-8600
Fax: 604/681-8799
e-mail "firstpoint@firstpointminerals.com"
Neither the TSX Venture Exchange nor its Regulation Services Provider
accepts responsibility for the adequacy or accuracy of this release.
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Copyright (c) 2009 FIRST POINT MINERALS CORP. (FPX) All rights
reserved. For more information visit our website at
http://www.firstpointminerals.com/ or send
mailto:info@firstpointminerals.com
Message sent on Fri Nov 13, 2009 at 6:36:29 AM Pacific Time
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First Point Minerals Corp
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EXPLORATEUR |
CODE : FPX.T |
ISIN : CA3359371083 |
CUSIP : 335937108 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
First Point Min. est une société d’exploration minière d'or et d'argent basée au Canada. First Point Min. détient divers projets d'exploration au Honduras. Ses principaux projets en exploration sont CORRALITOS au Mexique, DECAR et JOE au Canada et TULE et CAMPORO au Honduras. |