ASE SYMBOL: PFN AUGUST 4, 1999
Pacific North West Capital Signs Financing Agreement with
Amplats, the World's Leading Platinum Producer
VANCOUVER, BRITISH COLUMBIA--Management of Pacific North West
Capital Corp. ("PFN") is pleased to announce that an agreement has
been signed with Kaymin Resources Limited ("Kaymin"), a fully
owned subsidiary of Anglo American Platinum Corporation Ltd
("Amplats"), for the joint exploration of certain of PFN's
properties in the Sudbury Region of Ontario. Anglo American Plc,
one of the world's largest mining companies, which was recently
listed on the London Stock Exchange, is the largest single
shareholder of Amplats. South African-based Amplats mines,
processes, refines and markets platinum and other platinum group
metals ("PGM") and is the world's leading primary producer.
Kaymin may earn a 50 percent interest (subject to underlying net
smelter royalties) in specific PFN properties by paying PFN
$300,000 for the option and spending $4 million on exploration
over a five year period. The 1999 and 2000 exploration
expenditures, totaling $1.5 million, are contractually guaranteed.
Upon completion of the initial agreement, Kaymin may earn a 60
percent interest by completing a feasibility study, and a 65
percent interest by arranging all mine financing through to production.
PFN has been actively exploring the Sudbury Region for PGM and has
assembled a substantial package of properties in six townships
northeast of Sudbury. Significant PGM and copper-nickel values
have been identified on several properties. A recent drilling
program on the Janes Township Project returned highly encouraging
results (reported June 2 and July 5, 1999) which included: /T/
1.55m of 6.71 g/t PGM and 0.63 percent Cu-Ni
3.06m of 9.03 g/t PGM and 2.11 percent Cu-Ni
15.05m of 3.10 g/t PGM and 1.35 percent Cu-Ni /T/
Summer prospecting and sampling programs to delineate drill
targets on PFN properties have been ongoing. On PFN's River Valley
Project, where grab samples from two zones 6km apart ranged as
high as 12.64 g/t combined palladium, platinum, rhodium and gold,
a concentrated exploration program is now in progress to identify
specific drill targets. Additional drilling programs are slated
for 1999, including further drilling on the Janes Project.
PFN also has an aggressive ongoing North American and
international acquisition program in which Amplats has been
offered the opportunity to participate.
The participation of Amplats in the current PFN projects will
result in significantly expanded field programs. In addition to
funding, Amplats will provide technical assistance, particularly
with regard to geochemical analysis, mineralogy consulting,
minerals processing technology and geological modeling. PFN will
remain operator of the projects until Kaymin has completed the
initial $4 million commitment.
The agreement is subject to regulatory approval, and a finder's
fee is payable.
Platinum Group Metals are rare, enjoy unique chemical and physical
properties and are in great demand for jewelry, auto catalysts and
industrial uses. Current spot prices (Aug 4/99) are Platinum
US$357.00 and Palladium US$346.00 per ounce.
ON BEHALF OF THE BOARD OF DIRECTORS Harry Barr, President |
