TORONTO, June 4, 2012 /CNW/ - Pure Nickel Inc. (TSX: NIC) (the
"Company") announces an amendment to the agreement with CS Mining, LLC,
and receipt of US $500,000 payment. The amendment to the agreement will
not impact the Company's planned operations and programs for 2012.
Pure Nickel and CS Mining have agreed to amend their settlement
agreement. Under the original terms of the agreement, CS Mining was
required to pay Pure Nickel US$1,000,000 on May 14, 2012. Effective
today, CS Mining has paid Pure Nickel US$500,000 in partial payment of
the original note and will place US$500,000 in escrow with an
independent third party, First American Title Insurance Company. The
escrowed funds will be released to Pure Nickel once a disputed net
profits interest, discussed more fully below, is resolved. This
amendment does not have any material effect on CS Mining or the overall
economics of the settlement agreement between CS Mining and Nevada
Star, other than the fact that the US$500,000 payment is being made
into escrow instead of directly to Pure Nickel, in light of the
disputed net profits interest. Due to the indemnification requirements
of the settlement agreement, CS has no involvement in this litigation.
In the agreement signed with CS Mining in November 2011 Pure Nickel
provided CS Mining with certain indemnities regarding title to the
properties that Pure Nickel's subsidiary, Nevada Star had previously
controlled. The indemnity specifically addressed a 12% net profits
interest that was purportedly owned by among others, former officers
and directors of Nevada Star.
On April 25, 2012 Pure Nickel and Nevada Star filed a complaint in
United States District Court, District of Utah, Central Division
against Robert Angrisano, Monty D. Moore, Scott Nicholson and Monty L.
Moore. Monty D. Moore and Robert Angrisano were former officers and
directors of Nevada Star and former directors of Pure Nickel. The
A court determination that the net profits interest is invalid and
unenforceable due to, among other things, breach of fiduciary duties.
A court determination that the net profits interest is unenforceable
because it is specific to the mining activities of Nevada Star and it
is not tied to the mining claims.
Compensation to Pure Nickel for damages due to the pursuit of the
invalid and unenforceable net profits interest and interference in the
business relationship between Pure Nickel and CS Mining.
Compensation to Pure Nickel for the costs and damages of other title
A copy of the full claim document is available at http://www.purenickel.com/i/pdf/Complaint-Exhibits.pdf.
About Pure Nickel Inc.
Pure Nickel is a mineral exploration company with a diverse collection
of Nickel, Copper and Platinum Group Element exploration projects in
North America. The Company is currently active on its flagship MAN
property, which is fully funded under an option agreement with Itochu
Corporation of Tokyo, Japan. The Company will also undertake an initial
drill program on its 100% owned Salt Chuck property in the coming
months, and will embark on a re-assay program at its William Lake
project in the Thompson Nickel Belt. In addition, the Company is
actively pursuing other, non-nickel, properties in North America and
Forward Looking Statements
Some of the statements contained herein may be forward-looking
statements which involve known and unknown risks and uncertainties.
Without limitation, statements regarding potential mineralization and
resources, exploration results, expectations, plans, and objectives of
Pure Nickel are forward-looking statements that involve various risks.
The following are important factors that could cause Pure Nickel's
actual results to differ materially from those expressed or implied by
such forward-looking statements: changes in the world wide price of
mineral commodities, general market conditions, risks inherent in
mineral exploration, risks associated with development, construction
and mining operations, the uncertainty of future exploration activities
and cash flows, and the uncertainty of access to additional capital.
There can be no assurance that forward-looking statements will prove to
be accurate as actual results and future events may differ materially
from those anticipated in such statements. Pure Nickel undertakes no
obligation to update such forward-looking statements if circumstances
or management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on such forward-looking
The TSX Exchange does not accept responsibility for the adequacy or
accuracy of this release.
SOURCE Pure Nickel Inc.
For further information:
CHF Investor Relations
T. (416) 868-1079 x 231
The Howard Group Investor Relations
T. (888) 221-0915
Pure Nickel Inc.
President and CEO
T. (416) 644-0066