News is taken as positive.
Pershimco to acquire 75% of Las Minitas project
2007-05-11 10:03 ET - News Release
Mr. Alain Bureau reports
PERSHIMCO SIGNS LETTER OF INTENT TO ACQUIRE LAS MINITAS SILVER PROJECT IN SONORA, MEXICO
Pershimco Resources Inc. has signed a letter of intent to acquire a 75-per-cent direct property interest in the 8.22-square-kilometre Las Minitas silver-gold project in Sonora, Mexico, held by Tara Gold Resources Corp. The Las Minitas project is located in the western foothills of the Sierra Madre Occidental, and situated near mineral deposits owned by Agnico Eagle, Gammon Lake and Coeur D'Alene, 250 kilometres west-southwest of Pershimco's La Bamba and San Miguel properties, accessible via 30 km of secondary roads north from the intersection of Highway 15 connecting Navojoa and Alamos to the village of Las Minitas.
A qualifying technical report was completed in September, 2006, by M.H. Sandidge, PGeo, titled "Technical Report, National Instrument (NI) 43-101 Qualifying Property Report, Las Minitas Project, Sonora, Mexico." Highlights from the report include:
the Las Minitas mineralization consists of a silver-gold-bearing quartz vein stockwork system within Tertiary dacitic tuffs;
the report outlined a pre-National Instrument 43-101 resource of 13.53 million tonnes at 260 grams per tonne (g/t) silver and 0.31 g/t gold (War Eagle Mining, 1994) within three mineralized zones. The estimate cited is historical in nature. There has not been sufficient work to classify the historical estimate as compliant NI 43-101 mineral resources; nor is Pershimco treating the historical estimate as current mineral resources. The historical estimate should not be relied upon;
the report also stated that exploration work outside the areas of known mineralization is limited to non-existent, such that the size, shape, and the general character of the mineralization throughout most of the property are not well understood; and
the report recommended a minimum exploration program to increase the level of knowledge of mineralization at Las Minitas and to advance the known mineralization from the previous drilling program to a higher level of confidence compliant with NI 43-101. The program included:
geological mapping, rock chip sampling and analysis to outline the areas of mineralization;
CSAMT (controlled-source audio-frequency magneto-telluric) geophysical survey across the known and unknown mineralized areas to delineate linear vein-type mineralized structures at depth; and
infill drilling program over the known mineralized areas, delineated and extending from the 1994 drilling program, to outline mineral resources.
Property deal terms
Pershimco could earn a 75-per-cent direct property interest by making cumulative payments of $1.83-million (U.S.), staged exploration work for a total of $5.2-million (U.S.), property payments for $3.20-million (U.S.) and issuing 750,000 shares of Pershimco to Tara Gold Resources Corp.; 500,000 of which will be issued at the signing at a deemed price of $1.25 (Canadian) per share for a total of $625,000 (Canadian) and the remainder under the anniversary schedule in the attached table.
Exploration Property
Anniversary Payments work payments
dates (US$) (US$) Shares (US$)
On signing 180,000 500,000
Three months 200,000 190,000 (July, 2007)
Six months 250,000 255,000 (January, 2008)
12 months 500,000 600,000 250,000 337,500 (July, 2008)
18 months 400,000 287,500 (January, 2009)
24 months 100,000 1,000,000 345,000 (July, 2009)
30 months 402,500 (January, 2010)
36 months 100,000 1,200,000 517,500 (July 2010)
48 months 100,000 2,400,000
55 months 862,500 (April, 2011)
--------- --------- ------- ---------
Total 1,830,000 5,200,000 750,000 3,197,500
There is also a finder's fee payable in units equivalent to 5 per cent of the consideration offered by Pershimco after conversion into Canadian dollars representing 222,678 units at a deemed price of $1.25 (Canadian). Each unit consists of one common share and one share purchase warrant. Of the $1.25 (Canadian) price, $1.249 (Canadian) is allocated toward the share and 0.1 Canadian cent is allocated toward the share purchase warrant. Each warrant entitles the holder thereof, for a period of 24 months following the date of the issuance of the share purchase warrant, to purchase one common share at an exercise price of $1.65 (Canadian) per common share. An additional finder's fee includes 5 per cent of the shares issued by Pershimco representing another 37,500 common shares at a deemed price of $1.25 (Canadian) per share for a total of $46,875 (Canadian).
The deal is subject to a 45-day due diligence period.
Alain Bureau, vice-president of operations and special projects, said: "Our management team is very excited about today's announcement since the acquisition fits into our company's strategic objectives of giving the best value per share on every project. ... This week's Coeur d'Alene Mines, Bolnisi Gold and and Palmarejo Silver and Gold merger valued at $1.1-billion (U.S.) is another example of the added value given to the Palmajero/Bolnisi Palmarejo project, which is one of the highest quality primary silver projects in the world capable of producing 12 million ounces of silver and 110,000 ounces of gold annually, and is located less than 90 km east of Las Minitas. Pershimco firmly believes in following their path and continue the initial geological work done by Tara Gold using a Palmajero/Bolnisi approach, focusing on rapidly adding more mineral resources to this project."
The information in this news release has been prepared and reviewed by Jean Lafleur, PGeo, director and technical adviser to Pershimco, the company's qualified person under NI 43-101.
About Tara Gold Resources Corp.
Tara Gold Resources Corp. is a growth-oriented precious metals exploration and development company with existing production plants. Management's strategy is to become a significant gold and precious metals producer by reinitiating and increasing production levels at La Currita, Lluvia de Oro and Picacho, and developing the San Miguel, La Millionaria, Pilar De Mocoribo and Las Minitas projects in Mexico. Tara continues to acquire advanced-stage projects and/or producing mines in one of the most prolific precious metal districts in the world. For more information, please visit the company's website.
We seek Safe Harbor.
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