VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 31, 2014) - Pacific Imperial Mines Inc. ("PPM" or the "Company") (TSX VENTURE:PPM.H) is pleased to announce that it has signed a final Agreement with Inland Explorations Ltd., a private BC company ("Inland"), for an option to acquire up to 65% 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.
The Company has submitted the signed Agreement and NI 43-101 report on the property to the TSX Venture Exchange in order to complete the application for reactivation to Tier 2. Once the TSX Venture Exchange approvals have been received including approval for the completed private placement, preparation for a drilling program will begin.
Under the terms of the Agreement, 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$50,000) and one (1) million shares shall be due on Closing with the balance of property expenditures, payments of cash and share payments staged over a four year period and due on or before each anniversary date of the Closing Date as follows:
| Year |
Property
Expenditures (US$) |
Cash Cdn
($) |
Shares |
| 1 |
$ |
250,000 |
$ |
50,000 |
1 M |
| 2 |
$ |
750,000 |
$ |
75,000 |
1.25 M |
| 3 |
$ |
1,500,000 |
$ |
100,000 |
1.5 M |
| 4 |
$ |
3,000,000 |
$ |
100,000 |
1.75 M |
Upon PPM earning a 51% interest, the Company shall have the option to increase its interest in the 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 with 2 years. Upon earning a 60% interest, the Company has the option to increase its interest by an additional 5% to 65% by spending another US$5M on the property and delivering a bankable feasibility study within 2 years of acquiring a 60% interest.
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.
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 acquisition of gold and base metal properties. The Company has an option to acquire up to a 65% 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.