VANCOUVER, Sept. 25, 2012 /CNW/ - Camisha Resources Corp. (TSX-V: CRN)
("Camisha" or the "Company") is pleased to announce that on September
21, 2012 it entered into an agreement in principal to acquire 100% of
Prima Fluorspar Corp. ("Prima"). The resulting company will focus on
confirming and expanding the historic mineral resource* of
approximately 3.2 million tonnes averaging 32% fluorspar at its
100%-owned, 22,588 ha (55,816 acres) Liard Fluorspar Property in
Northern British Columbia, Canada.
Fluorspar (fluorite) is a critical commodity with an annual market of
$2.4 billion. Fluorspar is used in the production of hydrofluoric acid,
fluorocarbons (aerosols, refrigerant etc.), fluoropolymers (Teflon),
aluminum smelting, steel production, refining of petroleum, uranium and
concrete. In 2011, 6.2 million tonnes were sold at an average price of
$400 - the price has increased 300% from 2003.
Current prices for acid grade fluorspar are at a high of $550-600/tonne
(Industrial Minerals Magazine). Exports from China - the dominant
fluorspar producer - are decreasing due to export taxes, increased
domestic consumption and depleting supply. The North American market is
open for new supply as there are no producing fluorspar mines in Canada
and the USA.
Prima's 100%-owned Liard Fluorspar Property, 22,588 ha (55,816 acres) in
size, is an advanced stage exploration project with an historic
geological resource* of approximately 3.2 million tonnes averaging 32%
fluorite. Prima is confident in the potential for proving with modern methods and
possible expansion of the resource* at depth and along strike for
several kilometers. The Liard Property is on the Alaska Highway with
easy access to markets through the railhead at Fort Nelson, 300 km by
highway from the property.
Subject to regulatory and shareholder approvals, and subject to
financing, the company resulting from the purchase agreement, - to be
renamed Prima Fluorspar Corp. - will conduct a significant drill
program on the Liard Fluorspar Property during 2013 to confirm and
expand the historic geological resource* with plans to issue a
Preliminary Economic Assessment in the fourth quarter, 2013.
Fluorspar, the commercial name for fluorite (CaF2) is a critical commodity. The annual worldwide market for fluorspar is
estimated at $2.4 billion. World reserves of fluorspar are estimated at
240 million tonnes with annual production of 6.2 million tonnes in
Since 2003, the average selling price of fluorspar has increased from
$130/tonne to $400/tonne. Current prices for acid grade fluorspar
(September, 2012) are reaching a high of $550-600/tonne (Industrial
Fluorspar is used in the production of hydrofluoric acid, fluorocarbons
(aerosols, refrigerant etc.), fluoropolymers (Teflon), aluminum
smelting, steel production, refining of petroleum, uranium and
Large North American consumers and purchasers include Alcan, Alcoa,
Honeywell, Dupont, Dow, BASF, 3M. The North American market is open for
new supply as there are no producing fluorspar mines in Canada and the
USA and China's supply is decreasing.
China's history with fluorspar is similar to other critical commodities
like rare earth elements where China has built up a dominant supply
position only to subsequently limit exports. The fluorspar exports from
China are steadily decreasing through a 15% export tax, growing
internal consumption and depleting supply. China is currently the
largest producer of fluorspar: ~3.3 million tonnes fluorspar in 2010.
About Prima Fluorspar Corp.
Prima's Liard Fluorspar Property is an advanced stage exploration
project, located along the Alaska Highway 300 km from the railhead at
The Liard Property has an historic geological resource* of approximately
3.2 million tonnes averaging 32% fluorite. Over 60 holes in 7 major
showings were drilled in 1971 and 1972 by Conwest Exploration Company,
a well-established mining company. No technical report is currently
available regarding the historic resources on the property. An unknown
amount of this historic resource estimate may be outside of Prima's
Liard Flourspar Property.
The claims hosting the historic fluorspar showings were acquired from
prospector, Dave Heyman of Mission, British Columbia.
The mineralization follows a lithological contact, which continues
across Prima's property for several kilometers.
The historic drilling was shallow and did not follow the mineralization
to depth or along strike. Prima is confident that the historical
estimate is relevant as an indication of the potential of the property.
Prima is also hopeful for the potential for expansion of the resource*
at depth and along strike for several kilometers.
Historic mineralization, found in 1971 and 1972 was noted to be close to
surface and amenable to open pit mining.
Historic metallurgical testing of bulk samples and drill core from the
property indicates the ability to produce a high-quality acid-grade
product of greater than 97% CaF2 using conventional flotation methods.*
Acid grade product fetches the highest market price. In order to verify
the historical estimate as a current mineral resource, the company will
have to conduct detailed definition drilling on the property.
NO QUALIFIED PERSON HAS DONE SUFFICIENT WORK TO CLASSIFY THE HISTORICAL
RESOURCE ESTIMATE AS A CURRENT MINERAL RESOURCE. CAMISHA IS NOT
TREATING THE HISTORICAL ESTIMATE AS A CURRENT MINERAL RESOURCE. NO
TECHNICAL REPORT UNDER NATIONAL INSTRUMENT 43-101 HAS BEEN COMPLETED ON
Current prices for acid grade fluorspar (September, 2012) are reaching a
high of $550-600/tonne (Industrial Minerals Magazine).
The North American market is open for new supply as there are no
producing fluorspar mines in Canada and the USA. Industrial users in
Edmonton, Alberta; Vancouver, BC; Seattle, WA. and the Rio Tinto Alcan
aluminum smelter in Kitimat, BC are possible markets for potential
fluorspar production from the Liard property.
For more information about Prima please click: http://primafluorspar.com/.
Subject to regulatory and shareholder approval, the Company has agreed
to the following terms:
The Company will issue 10,015,000 common shares to all Prima
shareholders on a one for one basis
All of the 10,015,000 common shares issued in conjunction with the
purchase agreement will be subject to Escrow agreements pursuant to
National Policy 46-201.
A Special Shareholders Meeting will be held on November 26, 2012 to:
approve the purchase agreement;
approve the change of the Company name to Prima Fluorspar Corp.;
elect Mr. Robert Bick, Mr. Sean Charland and Mr. Dean Nawata to the
board of directors.
The transaction will be considered a reviewable transaction under the
policies of the TSX Venture Exchange, and will require its acceptance
in addition to shareholder approval.
From 2007 to 2010, Robert Bick served as CEO and Executive Chairman of
Evolving Gold Corp. www.evolvinggold.com. Robert joined Evolving when it had a market cap of less than $3
million, trading on the CNSX at $0.18. During Robert's tenure, Evolving
raised over $50 million, moved to the TSX Venture Exchange and
subsequently graduated to the TSX. When Robert left, Evolving had a
market cap of over $100 Million. Having served as Officer and Director
with several junior resource companies, Robert has a comprehensive
understanding of the requirements of building junior public companies
from the early stages.
Sean Charland is a seasoned communications professional with experience
in raising capital and marketing resource exploration companies. Mr.
Charland is a director of Zimtu Capital Corp., an investment issuer
listed on the TSX Venture Exchange. His network of financial community
contacts extends across North America and Europe. Mr. Charland also
serves as a Director (April 2011 - present) and Corporate Secretary
(September 2011 - present) of Pacific Polar Energy Group, a private
exploration company focused on Colombia; Director of Nanton Nickel
Corp. (April 2012 - present); and a Director of Arctic Star Exploration
Corp. (March 2012 - present).
Dean Nawata has over 18 years of public market experience, nine of which
he spent as a licensed stockbroker focusing on financing of junior
mining and oil/gas projects with Nesbitt Burns, Research Capital
Corporation, and Raymond James. Mr. Nawata currently holds a position
in Business Development for 49 North Resources - a resource investment,
financial, managerial and geological advisory, and merchant banking
Corporation listed on the TSX Venture Exchange. He is President and
CEO of Olympic Resources Ltd. (May 2012 - present) and a Director of
Big North Graphite Corp. (December, 2011 - present).
Non- Brokered Private Placement
In conjunction with the acquisition of Prima, and subject to regulatory
approvals, the Company wishes to announce a private placement of
4,750,000 common shares at a price of $0.10 per share for gross
proceeds of $475,000. This placement of $0.10 private placement common
shares will be subject to three year escrow provisions and will be used
for general working capital and for exploration of the King Property
and the Liard Fluorspar Property. A finder's fee may be payable in
accordance with the policies of the TSX.
About the Resulting Company
After closing of the transactions described in this press release, the
Company will explore the Liard Fluorspar Property in northern BC. The
Resulting Company - to be renamed Prima Fluorspar Corp. - will conduct
a significant drill program during 2013 to confirm and expand the
historic geological resource* with plans to issue a Preliminary
Economic Assessment in the fourth quarter, 2013.
The Company will also conduct an exploration program on its King
Property in the Yukon.
In compliance with National Instrument 43-101, Neil McCallum, P.Geo. is
the Qualified Person responsible for the technical disclosure of this
On Behalf of the Board of Directors
CAMISHA RESOURCES CORP.
President & CEO
*Historical Data: Prima has not undertaken an independent verification
to classify the historic resource estimate quoted from a Mineral
Potential Compilation Report for the BC Department of Economic
Development, written by Wright Engineers Limited and H.N. Halvorson
Consultants Ltd., in January 17, 1975 as a current mineral resource.
Neither has Prima independently verified the results of the previous
exploration work. Therefore, the historical mineral resource should not
be relied upon, but the issuer believes the information to be relevant
and reasonably reliable. An unknown quantity of the 3.2 million tonnes
are on mineral claims outside of the current Liard Fluorspar Property.
However, based on the information available, the majority of the
estimate is based on the deposits located on Prima's Liard Fluorspar
Property. The key assumptions, parameters and methods of the resource
estimate are unknown at this time. New deposit definition drilling is
needed to develop a current resource estimate on the property.
Prima believes that these historical mineral resources provide a
conceptual indication of the potential of the property and are relevant
to ongoing exploration.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, which address
future events and conditions, which are subject to various risks and
uncertainties. Forward looking statements in this press release include
that the Company will purchase all the shares of Prima Fluorspar, that
we can conduct a financing for working capital and exploration funds,
that the property of Prima Fluorspar has resources and that we can
verify and expand those resources, that the mineralization is close to
surface and amenable to open pit mining, and that we can obtain
regulatory acceptance for this transaction. The Company's actual
results and financial position could differ materially from those
anticipated in such forward-looking statements as a result of numerous
factors, some of which may be beyond the Company's control. These
factors include: results of exploration activities and development of
mineral properties, fluctuations in the marketplace for the sale of
minerals, the inability to close on the proposed acquisition, reliance
on inaccurate data, the inability to obtain financing, currency
fluctuations, the market price of fluorspar, general market and
industry conditions and other risks disclosed in the Company's filings
with Canadian Securities Regulators. In addition, even if there is
substantial mineralization on the company's properties, there is no
assurance that we will be able to commercially exploit it.
Forward-looking statements are based on the expectations and opinions of
the Company's management on the date the statements are made. The
assumptions used in the preparation of such statements, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. The Company expressly disclaims any
intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Camisha Resources Corp.
For further information:
Toll Free: 1.877.377.6222