PFN finalizes the acquisition of 100% of the River Valley PGM Project
The River Valley Project is one of Canada's largest primary Platinum
Group Metal deposits with significant exploration upside
NI 43-101 Compliant Resource
Over 110,000 metres in 550 holes drilled to date
$5 Million exploration program planned in two phases
Including a 15,500 metre drill program
$1 Million Phase I Program includes 3D IP and 3500 metres drilling
April 2011 drill program to expand on targets from previous exploration
TSX: PFN OTCQX: PAWEF FSE: P7J
VANCOUVER, April 7 /CNW/ - Pacific North West Capital Corp. ("PFN" or "the Company") TSX: PFN; OTCQX: PAWEF; FSE: P7J) is pleased to announce that the Company has closed the purchase of the
remaining 50% interest in the unincorporated joint venture ("JV")
covering the River Valley Platinum Group Metals (PGM) project from
Anglo Platinum Limited ("Anglo Platinum") through its wholly-owned
subsidiary, Kaymin Resources Ltd. ("Kaymin").
Pursuant to the terms of the agreement with Anglo and Kaymin, as
announced in the Company's news release of January 31, 2011, a total of
8,117,161 fully paid and non-assessable common shares of the Company
(reflecting a 12% interest in PFN based upon the issued and outstanding
common shares of PFN as of November 30, 2010 (67,643,008)) and
three-year warrants to purchase up to 3,000,000 common shares of the
Company at a price of Cdn$0.30 per common share have been issued to
Kaymin for its 50% interest in the JV.
The transaction provides PFN with an undivided 100% interest in the
River Valley PGM project in Ontario.
Harry Barr, President and CEO of PFN commented, "The shares issued to Kaymin will make Anglo Platinum a strategic
investor in PFN. Anglo Platinum will have the opportunity to
participate in the upside of the project through the future success of
the Company and at the same time, PFN will be able seek new sources of
funding to advance the River Valley PGM project."
The River Valley PGM project was acquired in 1998 by PFN through a
number of transactions. PFN discovered significant PGM occurrences on
the property and entered into a joint venture agreement with Anglo
Platinum in 1999.
"Stand alone PGM projects are rare in North America. The PFN / Anglo
Platinum agreement is the second major acquisition of its kind in
recent months. It was just over 6 months ago, in October 2010, when
Stillwater Mining acquired the platinum assets of the Canadian mining
junior Marathon PGM in a cash and shares deal that was valued at $118
million." Spiros Cacos, Manager Investor Relations.
The Company will now focus on advancing the project further through
renewed exploration activities. Prior work had left several target
areas where mineralization was open to depth and along the nine
kilometre strike length.
Similarly, new target areas were discovered that returned anomalous
values of PGM's but due to the financial crisis of 2008, were not
followed up. Induced polarization (IP) surveys were instrumental in
locating and identifying mineralized zones on the property. The Company
now intends to enhance the earlier work with more recent 3D technology
whereby the mineralization can in principle be traced to deeper depths
and contemporaneously mapped close to surface in new target areas. On
March 1, 2011. the Company provided an outline of the $5 Million
exploration strategy planned in two phases which includes a 15,500
metre drill program. Phase I commenced in April and includes 3D IP and
3500 metres of drilling to expand on targets from previous exploration
"The timing of this agreement could not be better. We expect that the
enthusiasm for global PGM exploration will escalate in the coming
months. The River Valley Project has many advantages over other PGM
exploration and development projects, mainly a defined resource located
only sixty kilometres from the nickel-copper-PGM smelting and refining
activities in Sudbury, Ontario." Anthony Kovacs, VP Exploration.
Qualified Person Statement
This news release has been reviewed and approved for technical content
by John Londry, a qualified person under the provisions of national
instrument NI 43-101.
About the River Valley PGM Project
The River Valley PGM project is located in the Dana and Pardo townships
of Northern Ontario, approximately 60km east of Sudbury, Ontario. The
project is road accessible in Canada's premier Ni-Cu-PGM mining and
smelting district which boasts perfect infrastructure and community
support for mining activities.
The River Valley project mineral claims were optioned by PFN in 1998
following the discovery of highly anomalous PGM values in grab samples.
The property was subsequently optioned by PFN to Anglo Platinum in
1999. Initial exploration was guided by geochemical and induced
polarization surveys with subsequent drilling proving up significant
mineralization at Dana Lake and Lismer's Ridge. A mineral resource
estimate in accordance with the guidelines set out by NI 43-101 was
published in 2006. Anglo Platinum continued to fund exploration under the terms of the
option and joint venture agreement and invested over $22M in the
exploration of the property for a 50% stake in the joint venture. In
order for Anglo Platinum to retain their interest in the Joint Venture,
they were required to fund all exploration to completion of a
feasibility study, but as a result of capital expenditure reductions
during the global financial crises, no new funds were allocated to the
project, above and beyond the minimal holding costs.
PFN and Anglo Platinum were able to come to terms whereby PFN could
acquire Anglo Platinum's 50% stake in the River Valley JV giving PFN
100% of the River Valley PGM project by offering 12% of its current
outstanding shares to Anglo Platinum. This would enable PFN to seek
external funding for the project while Anglo Platinum could benefit
from any future success of the project through its share ownership in
There are no other encumbrances on the River Valley PGM project
associated with the terms of the sale to Anglo Platinum after an 18
month early disposition period lapses. There are currently no back-in
rights or off-take agreements between the two parties. The property is
still subject to a 3% NSR that is payable to the underlying vendors.
About Pacific North West Capital Corp:
Pacific North West Capital Corp. is a mineral exploration company whose
corporate philosophy is to be a project generator, explorer and project
operator with the objective of option / joint venturing its projects
through to production. The River Valley PGM project is one of North
America's newest and largest primary platinum group metals (PGM)
deposits. The project is located in the Sudbury region of Ontario.
On March 1, 2011, PFN announced the 2011 exploration program for its
100% owned River Valley PGM Project located near Sudbury, Ontario.
Work to date at River Valley suggest that the best potential for
economic accumulations of PGM-Cu-Ni sulphide mineralization is within
the Breccia Zone. This Zone includes the main mineralized breccia or
Main Zone. The Main Zone occurs within about 20 m of the intrusive
contact with Archean gneisses. This contact zone extends for over 9 km of prospective strike length,
holds the current defined resource and is the main target of the
Company's renewed exploration efforts. Drilling and geophysical surveys
are planned to commence in the spring 2011.
On January 24, 2011, PFN announced a new NI43-101 mineral resource
estimate on the Destiny Gold Project which is situated 75 km near
Val-d'Or, Québec (see news release dated January 24, 2011). The Destiny
Project is under option from Alto Ventures Ltd. ("Alto"). Under the
terms of the option agreement, PFN can earn a 60% interest in the
property over a four-year period by completing $3.5 million in
exploration expenditures, paying $200,000 and providing a total of
250,000 PFN shares to Alto.
The Company is currently completing a NI 43-101 compliant resource
estimate on the Rock and Roll Polymetallic Project. The project is located in the Iskut River region of British Columbia
(see press release dated October 27, 2010). The Rock and Roll project
hosts volcanogenic massive sulphide mineralization, rich in precious
metals, in a volcano-sedimentary host rock package. The mineralization
shows similarities to the gold and silver rich mineralization of
Barrick Gold's past producing Eskay Creek mine. The Company also has
PGM, gold and base metal projects in Québec, Ontario, Saskatchewan and
Alaska and continues to aggressively look for new acquisition of
additional platinum group metals, precious metals on an international
In addition, PFN is a significant shareholder of Fire River Gold Corp (FAU:TSX.V) a company that is developing the Nixon Fork Gold Mine in Alaska, which is slated for production in summer of 2011.
Pacific North West Capital Corp. is well funded with an experienced
management team and the ability to take advantage of its growing asset
base in Platinum Group Metals, gold and base metals. To that end, the
Company is in the process of adding key technical and financial people
to our management, advisory team and our board of directors. PFN has
approximately $9 million in working capital and securities.
Pacific North West Capital Corp. is a member of the International Metals
Group of Companies (www.internationalmetalsgroup.com).
On behalf of the Board of Directors
President & C.E.O.
Disclaimer: This news release may contain certain "Forward-Looking
Statements" within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein are forward-looking
statements that involve various risks and uncertainties. There can be
no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations are
disclosed in the Company's documents filed from time to time with The
Toronto Stock Exchange, British Columbia Securities Commission and the
United States Securities & Exchange Commission.
SOURCE Pacific North West Capital Corp.
For further information:
Tel: +1.604.685.1870 Fax: +1.604.685.8045
Email: firstname.lastname@example.org, or visit www.pfncapital.com
2303 West 41st Avenue, Vancouver, B.C., Canada, V6M 2A3