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Message: Gold properties stolen by Chinese Government
| June 15, 2009 |
| Pacific Imperial Mines Inc.: News Release |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2009) - PACIFIC IMPERIAL MINES INC. ("The Company") (TSX VENTURE:PPM) announces that it has filed an application with the British Columbia Securities Commission seeking an order revoking the Cease Trade Order issued against the Company on November 6, 2008. The Cease Trade Order was issued as a result of the Company having failed to file audited financial statements for its financial year ended June 30, 2008 pursuant to the requirements of National Instrument 51-102. These financial statements, together with the related management discussion and analysis, have now been completed and filed and are available on SEDAR for review. Management has also determined that the Company has lost its control of the assets and operations of its wholly owned subsidiary, Guangnan Tangshang Gold Co., Ltd ("GGC"), including the Tangshang and Salachong gold properties (the "Properties") and the related mineral exploration and mining licenses, to Yunnan Nonferrous Metals Geological Bureau and Yunnan Non-Ferrous Metals Resource (Group) Co. Ltd., each a state owned entity of the Chinese government (collectively the "Yunnan Group"). The Yunnan Group is the operator engaged to carry out the mining work on the Properties under the Mining Operations Agreement dated October 15, 2007 made among the Company, Yunnan Bureau and Yunnan Resource Group (the "Yunnan Agreement") Based on management's determination, the Company effectively recognized the disposal of the net assets and operations of GGC during the financial year ended June 30, 2008. In accordance with the Yunnan Agreement, the Yunnan Group was to pay the Company 90% of profits from mining activities being conducted on the Properties and retain a 10% profit interest for its services. The Yunnan Group guaranteed the Company minimum profits of RMB 900,000 for its share of profits from the mining operations for the period from October to December 2007. On July 10, 2008, the Company received the minimum 2007 profit payment in the amount of $131,537 (RMB 900,000) from Yunnan Group. However, no further payments have been made to the Company, including the guaranteed profit payment of RMB 4,000,000 for the 2008 calendar year. As a result of the Yunnan Group's failure to make such payments and to provide an accounting to the Company for its mining activities on the Property, the Company is unable to determine the profits due to it under the terms of the Yunnan Agreement. Accordingly, as the Yunnan Group has failed to fulfill its obligations under the Yunnan Agreement, the Company considers the Agreement to be in default. The Company is reassessing its position with to respect to the Yunnan Agreement as a result of non-performance by the Yunnan Group and has initiated negotiations with the Yunnan Group with the objective of terminating the Yunnan Agreement and transferring the Properties back to the Yunnan Group on terms acceptable to the Company. There is no assurance that such negotiations will lead to any agreement being concluded. The Company also intends to commence a search for new business opportunities to pursue. On behalf of the Board of Directors PACIFIC IMPERIAL MINES INC. Leo King, President and Director |
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