VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2012) - Pacific Wildcat Resources Corp. (TSX VENTURE:PAW) ("PAW" or the "Company") is pleased to announce that it has entered into an agreement (the "Sale Agreement") with Muscadine Limited ("Muscadine") or its duly appointed Nominee, for the sale of 100% of the shares of Tantalum Mineração e Prospecção Limitada ("TMPL"), a 100% wholly owned Mozambique subsidiary of the Company, that owns the Muiane Tantalum mine and associated leases in northern Mozambique. Muscadine is the owner of the gemstone rights on all TMPL properties and will now acquire the tantalum rights. The transaction is scheduled to close no later than November 15, 2012, or such other date as may be agreed upon by the parties.
Key Terms of the Sale Agreement
Under the terms of the Sale Agreement, Muscadine will purchase the TMPL Shares and associated tantalum rights in consideration of the payment to PAW on closing of:
1) a cash payment of US $3 million, and
2) the transfer and delivery to PAW of an aggregate of 8,872,727 PAW shares currently owned by Muscadine.
Conditions of Closing
The closing of the transaction is subject to the satisfaction of certain conditions, including among others, the acceptance of the TSX Venture Exchange, the receipt of various regulatory approvals, if required.
PAW's President & CEO said "Now that we have closed on the acquisition of the 70% indirect interest in the Mrima Hill Niobium and Rare Earth project in Kenya, we feel it appropriate to concentrate our efforts on advancing the Mrima Hill project. Whilst we believe in a strong future for TMPL, given the current state of the capital markets and with a view to minimizing dilution of shareholders at current low equity prices, we believe the sale of the TMPL asset to finance ongoing activities at Mrima Hill is beneficial to the Company and its shareholders and we look forward to working with Muscadine to facilitate completion of the sale."
ON BEHALF OF THE BOARD OF DIRECTORS OF PACIFIC WILDCAT RESOURCES CORP.
Darren Townsend, President & CEO
About Pacific Wildcat Resources Corp. - Pacific Wildcat is a TSX Venture Exchange listed Canadian mineral exploration company having the trading symbol "PAW". PAW holds a 70% interest in the Mrima Hill Niobium and Rare Earth Project in Kenya. This is an ex Anglo American and Pechiney property the subject of extensive historic work. In July 2011 the Company completed an initial NI 43-101 compliant inferred niobium resource estimate of 105.3 million tonnes at 0.65% Nb2O5 for a total of 1.519 billion pounds contained Nb2O5 to a depth of 30 metres from the surface In addition, substantial rare earths mineralization has been identified and it is the objective of the Company to complete a Rare Earth Resource RC drilling program over the next 6 months.
For information about Pacific Wildcat Resources Corp. and its development and exploration activities shareholders and other interested parties are invited to visit the company's website at www.pacificwildcat.com.
Investors are cautioned that trading in the securities of Pacific Wildcat Resources Corp. should be considered highly speculative. Cautionary note: This press release contains forward looking statements, particularly those regarding cash flow, capital expenditures, the completion of certain financings, work programs, the estimation of mineral resources and the Company's plans with respect to the exploration and development of its projects and its investment plans. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. There can be no assurance that the Company will be able to obtain a mining licence or any of the permits that are required in order to commence mining operations at the Mrima Hill Project. The rare earths historical resource estimates is considered speculative and therefore noncompliant with National Instrument 43-101 ("NI 43-101") reporting standards and should not be relied upon. The Company is not treating the historical estimate as current mineral resources or reserves. The Company has not undertaken any independent investigation of the historic rare earths resource estimates. The Company believes that these historical resource estimates provide a conceptual indication of the potential of mineral occurrences within the project and are relevant to ongoing exploration. The Company intends to confirm the historic resource estimates through drilling as soon as possible.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. 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.