Pacific Rim Mining Provides Update on Exploration Focus and CAFTA Proceedings
March 04 2010 - 3:20PM
Marketwired
Pacific Rim Mining Corp. (TSX: PMU)(NYSE Amex: PMU) ("Pacific Rim"
or the "Company") provides the following update to shareholders.
All references to "Pacific Rim" or "the Company" encompass the
parent corporation, Pacific Rim Mining Corp, and its U.S. and
Salvadoran subsidiaries, Pac Rim Cayman LLC ("PacRim"), Pacific Rim
El Salvador, S.A. de C.V. ("PRES"), and Dorado Exploraciones, S.A.
de C.V. ("DOREX"), inclusive.
ZAMORA-CERRO COLORADO PROJECT EXTENSION
An amendment to the Zamora-Cerro Colorado project option
agreement was recently signed by the Company and the property
vendors, Cerro Colorado S.A. de C.V. and Nycon Resources, Inc. This
amendment provides for a deferral of the remaining Zamora-Cerro
Colorado property payments (those scheduled for years 4 and 5 of
the agreement), which consist of advance royalty payments to be
made in cash or securities (see NR# 06-19 dated September 26, 2006)
until the earlier of the date on which Pacific Rim receives
confirmation that the Government of El Salvador ("GOES") has
granted a mining exploitation concession for the El Dorado project
or February 11, 2015.
"The Zamora-Cerro Colorado project is a stellar exploration
opportunity and an integral component of our Salvadoran portfolio,"
states Tom Shrake, CEO, "but we simply can not justify any further
expenditure on the project until the status of mining in El
Salvador is clarified by the Salvadoran government. We are thrilled
that the Zamora-Cerro Colorado property vendors value our
involvement in the project and we look forward to resuming
exploration work on Zamora-Cerro Colorado."
EXPLORATION UPDATE
PacRim, PRES and DOREX ceased exploration work on the El Dorado,
Santa Rita and Zamora-Cerro Colorado projects in El Salvador in
July 2008. A small core group of employees have been retained to
maintain the projects and continue baseline environmental data
collection.
Pacific Rim is applying its technical expertise on project
generation efforts in jurisdictions outside El Salvador; countries
with established mining industries and proven track records for
foreign investment. The Company's exploration team is currently
applying their skills and competitive technical advantage in the
hunt for high quality gold projects that meet its strategic plans
of low environmental impact and low operating cost. Specific
opportunities have been identified and are being pursued.
"The focus of Pacific Rim and its subsidiaries has shifted back
to value creation through discovery," states Tom Shrake, President
and CEO. "We are proud of our track record of discovery,
environmental stewardship and social responsibility, and of the
many jobs we have created through the years for peoples of many
nations. We look forward to our next discovery for the benefit of
our shareholders, as well as the local people where we work."
CAFTA
PacRim's action under the Central America-Dominican
Republic-United States of America Free Trade Agreement ("CAFTA")
and the El Salvadoran Investment Law formally commenced on April
30, 2009, when PacRim filed its Notice of Arbitration with the
International Centre for Settlement of Investment Disputes
("ICSID"), which is part of the World Bank. On November 18, 2009, a
three-member Arbitral Tribunal was constituted to hear the case
(see Pacific Rim news release #09-08).
On January 4, 2010, the GOES filed preliminary objections to
PacRim's claims under CAFTA and El Salvador's Investment Law.
Copies of the GOES's filing and PacRim's response to ICSID are
available on Pacific Rim's website (www.pacrim-mining.com). Under
CAFTA Article 10.20, the Tribunal is to rule on the objections on
an expedited schedule, has set a hearing on the objections for May
31 and June 1, 2010, and is expected to issue a ruling by September
2010. PacRim believes that El Salvador's objections are not only
completely without merit, but are also frivolous, and that GOES
filed them purely as an attempt to stall the arbitration
proceedings. PacRim fully expects that the Tribunal will reject the
objections and proceed with the arbitration claim.
DIALOGUE WITH THE GOVERNMENT OF EL SALVADOR
The Company was discouraged to hear public comments made on
January 13, 2010 by President Mauricio Funes in which he voiced
environmental concerns for mining; comments which were, in the
Company's opinion, groundless and ill-conceived. The Company had
been encouraged by a series of meetings held in the fall of 2009
with the highest levels of President Funes' cabinet and leadership
from the ruling FMLN party to discuss the environmental, technical,
economic and social aspects of the proposed El Dorado mine. During
all of these meetings, the Company was encouraged by the positive
reactions to the technical and environmental aspects of the
mine.
El Salvador has mining laws, investment laws and environmental
laws in place. PacRim has complied with if not exceeded all of the
requirements of these laws. The actions and inactions of the GOES
over the past years have severely eroded not only Pacific Rim's
market value, but also El Salvador's reputation as a place for
foreign investment. Before El Salvador can hope to attract the
future foreign investment sorely needed in this time of economic
crises, the country must demonstrate that it is willing to protect
and enforce the rights of existing foreign investors.
ABOUT THE COMPANY
Pacific Rim is an environmentally and socially responsible
exploration company focused exclusively on high grade,
environmentally clean gold deposits in the Americas. Pacific Rim's
subsidiary PacRim is the owner of the high grade, vein-hosted El
Dorado gold project in El Salvador. Through its subsidiaries,
Pacific Rim owns several similar grassroots gold projects in El
Salvador and the Company is actively seeking additional assets
elsewhere in the Americas that fit its project focus. Pacific Rim's
shares trade under the symbol PMU on both the Toronto Stock
Exchange ("TSX") and the NYSE Amex.
On behalf of the board of directors,
Thomas C. Shrake, President and CEO
Cautionary Note Regarding Forward-Looking Information
Information set forth in this document may involve
forward-looking statements. By their nature, forward-looking
statements are subject to numerous risks and uncertainties, some of
which are beyond Pacific Rim's control, including: the outcome of
any investigations into the Cabanas murders and other acts of
violence against PacRim and/or its property and employees; the
opportunity for and potential outcome of ongoing dialogue with the
GOES aimed at resolving the El Dorado permit impasse; the outcome
of ICSID's ruling on the GOES's preliminary objection filing to
PacRim's CAFTA claim and the continuation of the CAFTA claim; the
outcome of PacRim's CAFTA claim should it continue to completion;
and the outcome of any new project due diligence. Readers are
cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Pacific Rim's
actual results, programs and financial position could differ
materially from those expressed in or implied by these
forward-looking statements.
The TSX and NYSE Amex have neither reviewed nor accept
responsibility for the adequacy or accuracy of this release.
Contacts: Pacific Rim Mining Corp. Barbara Henderson (604)
689-1976 or 1-888-775-7097 (604) 689-1978 (FAX)
general@pacrim-mining.com www.pacrim-mining.com
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