CALGARY, ALBERTA--(Marketwire - June 4, 2012) - Pacific Iron Ore Corporation ("POC" or the "Company") (POC.V - News) announces that it has signed a Letter of Intent with Century Energy Ltd ("Century") pursuant to which it will grant to Century the right for Century to acquire up to a 40% undivided interest in POC's St. Anthony and Best/King Bay mineral properties ("Property") located in the Beckington Lake, Squash Lake and Fourbay Areas of Patricia Mining Division, Ontario ("Transaction"). The Property is comprised of approximately 8,784 hectares, and is more fully described in the NI 43-101 technical report dated June 12, 2009 which can be found on the Company's website at www.pacificironorecorp.com.
The non-binding Letter of Intent is subject to several conditions including applicable regulatory approval, board of director's approval, due diligence, an updated NI 43-101 to substantiate the proposed Phase 1 work program and completion of a financing by Century. Century intends to complete an equity private placement offering of a minimum of $2M prior to or concurrent with the closing of the Transaction. The Transaction is scheduled to close no later than September 29, 2012 or such other date as determined by Century and POC.
Century shall be entitled to earn an initial 20% undivided interest in the Property by making a $2M cash payment for expenditures on the Property's Phase 1 work program. Century shall be entitled to earn an additional 20% undivided interest for a further $2.5M payment within 12 months of the closing of the Transaction or $3M payment within 24 months of the closing of the Transaction.
Forward Looking Statements:
This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, that address matters such as future production, reserves potential, exploration drilling, exploration activities and potential future events or developments are forward looking statements. Although the Corporation believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause results to differ materially from those in the forward looking statements include, but are not limited to: market prices; exploitation and exploration successes; continued availability of capital, financing and personnel; government regulation and laws; the Corporation's relationship with First Nations; environmental developments; and general economic, market or business conditions. Investors are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward looking statements. For more information regarding Pacific Iron Ore Corporation, Investors should review the Corporation's registered filings which are available at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
- Letter of Intent