VANCOUVER, Sept. 25, 2012 /CNW/ - Plains Creek Phosphate Corporation ("Plains Creek" or the "Company") (TSX‐V: PCP) is pleased to confirm the 30th September 2012 completion date for the 1 million tonne per annum
Feasibility Studies and announces a private placement of up to $5
One Million tonne per Annum Feasibility Studies
Based on the previously announced decision (August 23, 2012) that the
Company had decided to prepare a Feasibility Study for a one million
tonne per annum phosphate rock concentrate project, the Company wishes
to confirm that GBM Minerals Engineering Consultants Limited
("GBMMEC"), the Company's project managers, have confirmed that this
Feasibility Study will be completed by September 30, 2012.
In addition, the Company has requested GBMMEC to prepare a 1 million
tonne per annum Direct Shipping Option (DSO) Feasibility Study that is
expected to be completed in the same time frame.
The Company will review these Feasibility Studies and expects to
disseminate a News Release during the later part of the following week
to describe the results of the Feasibility Studies.
$5 million Private Placement
The Company wishes to announce the terms of a private placement of up to
$5 million that will be undertaken to fund working capital, ongoing
detailed engineering and design and discussions and negotiations with
offtakers, strategic investors and the project level funding necessary
to develop the Farim Phosphate Project.
Under the terms of the up to $5 million private placement, the Company
will offer up to 100 million Units at a price of $0.05 per Unit. Each
Unit will be comprised of one common share and one half common share
purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant
entitles the holder to acquire a Common Share at a price of $0.10 per
share for a period of 18 months from the date the Warrant is issued.
Two Million tonne per Annum Phosphate Rock Concentrate Bankable
Phase Two beneficiation of the Farim Phosphate Project contemplates two
million tonnes per annum of phosphate rock concentrate to process the
balance of the phosphate resource existing after the first phase of one
million tonne per annum. The Feasibility Study for the two million
tonne per year phosphate rock beneficiation project will be completed
by October 31, 2012 to allow completion of the Feasibility Studies for
the one million tonne per year projects.
The Company is investigating three production scenario alternatives for
the progressive development of the Farim Phosphate Project, depending
on the phosphate market conditions, the economic and political climate
in Guinea Bissau and the availability of capital and skilled manpower
to develop the Farim Phosphate Project:
the 1 million tonne per annum direct shipping option (DSO);
the 1 million tonne per annum phosphate rock concentrate beneficiation;
the 2 million tonne per annum phosphate rock concentrate beneficiation.
About Plains Creek Phosphate Corporation:
Plains Creek Phosphate Corporation is a Canadian mining and exploration
company focused on advancing the Farim Phosphate Project located in
Guinea‐Bissau, West Africa. The Farim Project currently comprises a
high grade phosphate deposit consisting of one continuous flat lying
phosphate bed with a Mineral Resource estimate disclosed in accordance
with NI 43-101 in a Preliminary Economic Assessment Technical Report
dated September 5, 2012 (the "PEA") that defines a Measured Resource of
64.6 Mt at an average grade of 29.11% P2O5, an Indicated Resource of 28.1 Mt at an average grade of 27.68 % P2O5 and an Inferred Resource of 18.3 Mt at an average grade of 28.66 % P2O5. Three alternate development plans are being considered for the Farim
Phosphate Project as an open pit mining operation. Phase One,
comprising either a Direct Shipping Option Project with an annual
phosphate production of 1 Mt per annum or a 1 Mt per annum phosphate
rock concentrate project, and Phase Two which consists of the
production of 2 Mt per annum of phosphate rock concentrate. The PEA was
prepared by GBM Minerals Engineering Consultants Limited ("GBMMEC") in
conjunction with Golder Associates (U.K.) Ltd ("Golder"), all of whom
are independent of the Company. The PEA is filed on SEDAR and is
available under the Company's profile at www.sedar.com.
The Company's shares are listed on the TSX Venture Exchange under the
trading symbol "PCP". For additional information, please visit us at www.plainscreek.com.
ON BEHALF OF THE BOARD
(Signed) "Carson Phillips"
Vice‐President, Corporate Development and Director
Statements in this news release may be viewed as forward-looking
statements. Such statements involve risks and uncertainties that could
cause actual results to differ materially from those projected. There
are no assurances the Company can fulfill such forward-statements and
the Company undertakes no obligation to update statements. Such forward
looking statements are only predictions; actual events or results may
differ materially as a result of risks facing the Company, some of
which are beyond the Company's control. In addition, pursuant to
National Instrument 43-101, the Company cautions that mineral resources
that are not mineral reserves do not have demonstrated economic
Factors that contribute to risk include, among others, delay or failure
to receive regulatory, shareholder or other required approvals to
complete the Farim Phosphate Project, timing and ability to raise
capital on acceptable terms, not realizing the potential benefits of
the Farim Phosphate Project, risks related to the actual results of
exploration activities, conclusions of economic evaluations, risks
associated with mining and mineral exploration activities, uncertainty
in the estimation of mineral resources, including, without limitation,
the assumptions on which such estimates are based, changes in project
parameters as plans continue to be refined, future prices of metals,
economic and political stability in Guinea Bissau, environmental risks
and hazards, increased infrastructure and/or operating costs,
availability of future financing, labour and employment matters, and
government regulation. There is no guarantee that any drill targets or
economic mineral deposits will be found on the Plains Creek's
properties. For a more detailed discussion of such risks and other
factors, refer to the most recent Management Discussion and Analysis of
the Company filed with Canadian securities regulators available on www.sedar.com.
NEITHER 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.
SOURCE: Plains Creek Phosphate Corp.
For further information:
Vice‐President, Corporate Development and Director
Telephone: (604) 569‐0721