Jan. 13, 2011 (TheNewswire.ca) --
January 13th, 2010 - Pacific Coast Nickel Corp. (OOTC:PNIKF) (TSXV:NKL) (the "Company")(TSX-V: NKL) announces that it has received approval from the TSX Venture Exchange for the previously announced transaction involving the letter agreement with Marifil Mines Limited (OOTC:MFMLF) (TSXV:MFM) ("Marifil"). On November 8, 2010 Pacific Coast Nickel Corp. (the "Company") announced that it entered into a letter agreement with Marifil Mines Limited ("Marifil") for an option to acquire a 70% interest in the Las Aguilas Nickel-Copper-PGM property located in San Luis Province, Argentina. The company inadvertently omitted a term of the agreement. The complete correct terms are listed below.
The Las Aguilas Property is located in San Luis Province, Central Argentina, approximately 730 km WNW of Buenos Aires, and 30 km NE of San Luis, the province capital. The approximate coordinates of the centre of the property are 330 07' S, and 660 08' W.
Marifil has reported that the Las Aguilas deposit contains a historical resource of 2.2 million tonnes grading about 0.52% nickel, 0.50% copper, 0.04% cobalt and significant amounts of platinum group elements. (this is not a National Instrument 43-101 compliant resource estimate). This resource was calculated from 10,000 meters of diamond drilling between 1970 and 1984.
The resources are categorized as "historical estimates" and have not been reviewed or verified under National Instrument 43-101. However, the Company believes that the property has the potential to add significant additional nickel mineralization. The historical exploration data was developed by the Argentine government agency Fabricaciones Militares which conducted an exploration program in the area.
Additional drilling was conducted by a former partner of the property in 2007 and 2008, which is anticipated to expand the historical resource estimate significantly.
The agreement with Marifil provides for payments and work commitments as follows:
To earn a 49% interest in the property:
Cash and Shares
1) $25,000 upon signing and 250,000 shares on approval of the TSX Venture Exchange; and
2) $75,000 and 250,000 shares on or before April 1, 2012;
3) $100,000 and 250,000 shares on or before April 1, 2013
4) $100,000 and 250,000 shares on or before April 1, 2014
Work Commitments
1) On or before April 1, 2012 complete a resource estimate based on work completed to date,
2) On or before April 1, 2013 incur $500,000 in exploration expenditures,
3) On or before April 1, 2014 incur $500,000 in exploration expenditures,
4) On or before April 1, 2015 incur $1,000,000 in exploration expenditures.
The agreement also provides for Pacific Coast to earn an additional 11% (bringing the interest to 60%) for preparation of a pre feasibility study and issue an aggregate 2,000,000 shares by April 15, 2015. In order for the Company to acquire a further and final 10% interest (bringing the total interest to 70%), the Company must complete a feasibility study, make a cash payment of $100,000 to Marifil and issue an aggregate of 1,000,000 shares to Marifil by April 1, 2016.
The agreement also provides for granting of a 3% NSR to Marifil of which 0.5% can be purchased for $1,000,000 and a further 0.5% can be purchased at any time for an additional $2,000,000. Pacific Coast retains the option of buying Marifil's remaining 30% for $5,000,000.
The Company also announces, subject to TSX Venture approval, it has granted 500,000 stock options to directors of the Company. The options are set for a period of five years and will allow the holder to purchase a share in the Company as a price of $0.20, representing the January 11, 2010 closing price of the shares on the TSX Venture Exchange). Any shares issued on the exercise of these options will be subject to a four-month hold period from the date of the grant.
Murray McClaren, P.Geo., is the Qualified Person under National Instrument 43-101 who has approved the technical content of this news release.
We Seek Safe Harbour
On behalf of the board of directors of Pacific Coast Nickel Corp.,
"James Walchuck"
James Walchuck, President, CEO and Director
For more information, please contact:
-------------------------------------- |Pacific Coast Nickel Corp. || |Jim Walchuck || |President, CEO and Director || |(604) 688-8913 || |E: jwalchuck@pacificcoastnickel.com || |W: www.pacificcoastnickel.com || --------------------------------------
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.
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