TORONTO, Nov. 17, 2011 /CNW/ - Pure Nickel Inc. (TSX: NIC) along with its wholly-owned subsidiary, Nevada Star Resource Corp.
(U.S.), (jointly referred to as "Pure Nickel") is pleased to report
that it has signed a final settlement agreement with CS Mining, LLC and
Skye Mineral Partners, LLC (jointly referred to as "CS Mining") with
respect to litigation regarding the Milford, Utah, mining district.
Terms of the agreement include:
Contractual Cash Payments from CS Mining to Pure Nickel - US$3.5 Million
Within 12 Months
Payment of US$1 million immediately upon signing - funds have been
Payment of US$1 million 180 days after signing; and
Payment of US$1.5 million 12 months after signing.
Net Smelter Royalty - Capped at US$8.0 Million
1% Net Smelter Royalty (NSR) on all properties acquired by CS Mining
from Western Utah Copper Corporation and Copper King
Both parties will file documentation dismissing pending litigation,
claims and counter claims; and
Certain non-mining real property assets not included in the original
agreements have been transferred to CS Mining.
Pure Nickel's President and CEO David McPherson commented: "We are
extremely happy to have reached an agreement with CS Mining; this
settlement extracts value from the Milford, Utah, property immediately
and provides for participation in the property as production comes on
line in the near future".
Clinton Walker and David J. Richards, Directors of CS Mining, jointly
stated: "The settlement of the long-standing litigation and recent
emergence from bankruptcy will allow CS Mining to focus on its
operating plan to restart operations".
About Pure Nickel Inc.
Pure Nickel is a mineral exploration company with a diverse collection
of mineral exploration projects in North America. With approximately
$3.1 million cash on hand and another $2.5 million to be received
within 12 months, Pure Nickel is in a strong position to advance its
About CS Mining, LLC
Headquartered in Milford, Utah, CS Mining is located near the mineral
rich Anaconda Skarn. CS Mining is in the business of mining and
processing copper, gold, and silver through its existing flotation mill
and has plans to expand its operations in the near future. (www.csmining.com)
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 and the extent to which the developers of the
WUCC property are successful in their endeavours, 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 statements.
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
The Howard Group Investor Relations
T. (888) 221-0915
Pure Nickel Inc.
President and CEO
T. (416) 644-0066
Vice President Operations
T. (435) 387-5053