VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 23, 2014) - Pacific Imperial Mines Inc. ("PPM" or the "Company") (TSX VENTURE:PPM.H) is pleased to announce that it has entered into an arm's length binding Letter of Intent with Inland Explorations Ltd., a private BC company ("Inland"), for an option to acquire up to 60% interest in Inland's drill-ready Keg Mountain Property ("Keg Property"), located 100 kilometers south of Salt Lake City, in central Utah's Great Basin, one of the premier metallogenic provinces in the world. The Keg property comprises 5,081.44 acres located in Juab County, Utah and consists of 184 federal unpatented mineral claims and two State Section Leases.
Closing shall take place on or before April 28, 2014 and will be subject to financing and TSX-Exchange approvals.A finders' fee may be payable as a result of the Keg acquisition.
Under the terms of the Letter of Intent, PPM has the option to earn a 51% interest within 4 years by incurring total property expenditures of US$5.5M, issuing to Inland a total of 6.5 million shares in the Company, and making total cash payments of C$375,000, as well as posting any required exploration bonds and paying all annual property and permit related expenses. Fifty thousand dollars (C$50,000) and 1 million shares shall be due on Closing with the balance of property expenditures, payments of cash and share payments staged over a four year period and due on or before each anniversary date of the Closing Date as follows:
| Year |
Property Expenditures (US$) |
Cash Cdn$ |
Shares |
| 1 |
$ |
250,000 |
$ |
50,000 |
1M |
| 2 |
$ |
750,000 |
$ |
75,000 |
1.25M |
| 3 |
$ |
1,500,000 |
$ |
100,000 |
1.5M |
| 4 |
$ |
3,000,000 |
$ |
100,000 |
1.75M |
Upon PPM earning a 51% interest, the Company shall have the option to increase its interest in Keg Property by an additional 9% to 60% by spending an additional US$4.5M on the Keg Property and delivering a pre-feasibility level study on the property within 2 years.
Drill targets on the Keg Property have been defined by Inland's exploration work that includes geological mapping and sampling and airborne and surface geophysical surveys. One of the high priority untested drill targets is defined by anomalous surface geochemical values of lead, zinc, copper, molybdenum, gold and silver that are coincident with a large Induced Polarization (IP) anomaly, indicating potential for a porphyry copper-molybdenum deposit and associated skarn mineralization.
The mineral concessions comprising the property are currently held 100% by Inland. Drill plans have been approved by the Utah Division of Oil, Gas and Mining and permits should be granted upon posting of a reclamation bond.
Mr. Leo King, President of Pacific Imperial Mines Inc. states: "We are pleased to have the opportunity to test the mineral potential of this exciting property and expect to begin an initial drill program as soon as funding is in place and TSX-V Exchange approvals have been obtained."
About Pacific Imperial Mines Inc.
Pacific Imperial Mines Inc. is a mineral exploration company based in Vancouver, Canada, engaged in the evaluation, acquisition and exploration of mineral properties in an acceptable risk environment. The company's current focus is on the acquisition of gold and base metal properties. The Company has a binding Letter of Intent for an option to acquire up to a 60% interest in the drill-ready Keg Mountain Property ("Keg Property") located in central Utah's Great Basin, one of the premier metallogenic provinces in the world.
H. Leo King, President of the Company, is a Qualified Person, as defined in National Instrument 43-101, and is responsible for the technical content of this press release.
On behalf of the Board of Directors
PACIFIC IMPERIAL MINES INC.
H. Leo King, President and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), accept responsibility for the adequacy or accuracy of this release. This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.