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.