VANCOUVER, May 22, 2014 /PRNewswire/ - Western Pacific Resources Corp. (the "Company") (WRP - TSXV) is pleased to provide a progress report on the development of its Deer Trail Mine in Utah and announce it has received additional financing from Quintana.
Upon closing of the acquisition and financing in February 2014, the Company immediately began an aggressive schedule of advancing the project. Electrical upgrades and installations on surface are now complete at the mine site. New transformers, compressors and air tanks have also been installed, all buildings have been rewired, and power has been restored to the escape raise. In addition the mine contractor has refurbished and updated the mine ore cars and locomotives.
The Mine Safety and Health Administration (MSHA) has approved Western Pacific's plans for reactivation of the mine. Those plans include ventilation, geotechnical and ground support, escape and evacuation. With these approvals in place the Company is now ready to begin underground activities. In addition, the contractor crews have completed their training programs for surface and underground work on site.
The underground contractor has mobilized to site. The second phase of work is under way and includes the following:
- Minor rehabilitation and clean up of the PTH drift
- Restoration of ventilation
- Construction of an underground refuge chamber
- Drifting and excavation of five underground drill stations which will be used to drill out the 3400 area of the mine
Michael Callahan, CEO & President, comments: "We have been very busy since the close of the acquisition and financing in February, and activities are moving quickly at site. We are on schedule and budget to begin drilling in the third quarter this year. We have met our targets and accordingly Quintana has invested their second tranche, allowing us to continue on this aggressive schedule of defining resources in the 3400 mineralized zone. Our goal remains to define sufficient resources to develop a mine plan that takes advantage of mill and extensive infrastructure in place at Deer Trail."
The Company also welcomes Dean Misantoni as Chief Geologist at the Deer Trail Mine. Dean worked at the Deer Trail Mine in the past and we are pleased to have his expertise leading our team on site. The geology team has been reviewing historic data and mapping the 3400 zone. This work has been instrumental in furthering the Company's understanding of the mineralized structures and finalizing its underground drill program.
Financing Second Tranche Received
As previously mentioned, the Company is also pleased to announce that it has received US$1.5 million from Quintana WRP Holding Company LLC ("Quintana WRP") pursuant to the Company's convertible note financing completed in February 2014.
With the US$3.5 million of convertible notes previously purchased on closing of the financing, Quintana WRP now holds secured convertible notes of the Company ("Secured Notes") in the aggregate principal amount of US$5.0 million. The Secured Notes will mature three years from the date of issuance and are convertible at any time at the option of Quintana WRP, in whole or in part, into common shares of the Company at a rate of CAD$0.1328 per share (see press releases December 10, 2013 and February 24, 2014).
About Western Pacific Resources Corp.
Western Pacific is focused on developing the polymetallic Deer Trail Mine in Piute County, Utah. The project includes a 250 tpd flotation mill, 5 miles of underground development, a large scale mining permit and other extensive infrastructure. Western Pacific's team is led by industry experts who aim to succeed in creating value for shareholders. For more information, please visit our website at www.westernpacificresources.com.
ON BEHALF OF THE BOARD
Arthur Brown, Chairman of the Board
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of Canadian securities legislation. Forward-looking statements contained in this news release include, without limitation, statements in respect of the proposed development of the Deer Trail Mine property. These statements relate to future events, business prospects or opportunities and product development. All such statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Actual results and developments may differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release.
Forward-looking statements involve known and unknown risks, uncertainties, assumptions of management and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statement, including but not limited to: (a) the Company not having the financial ability to meet its exploration and development goals; (b) risks associated with the results of exploration and development activities, the interpretation of drilling results and other geological risks, estimation of mineral resources and the geology, grade and continuity of mineral deposits, project cost overruns or unanticipated costs and expenses; and (c) such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com.
Although the Company believes that the expectations conveyed by the forward-looking statements are reasonable based on the information available to it on the date such statements were made, no assurances can be given as to future results, approvals or achievements. Such forward-looking statements have been made for the purpose of assisting investors in understanding the Company's business, financial and operational performance and plans and may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The Company disclaims any duty to update any of the forward-looking statements after the date of this news release to conform such statements to actual results or to changes in the Company's expectations except as otherwise required by applicable law.
SOURCE Western Pacific Resources Corp.