November 17, 2011Pure Nickel Reaches Final Settlement with CS Mining on Milford Utah Property
November 17, 2011
For 11:00 am ET RELEASE
Pure Nickel Reaches Final Settlement with CS Mining on Milford Utah Property
TORONTO, Ontario. Pure Nickel Inc. (NIC: TSX) along with its wholly-owned subsidiary, Nevada Star Resource Corp. (U.S.), (jointly referred to as "Pure Nickel") is pleased to report that it has signed a final settlement agreement with CS Mining, LLC and Skye Mineral Partners, LLC (jointly referred to as "CS Mining") with respect to litigation regarding the Milford, Utah, mining district.
Terms of the agreement include:
Contractual Cash Payments from CS Mining to Pure Nickel - US$3.5 Million within 12 Months
• Payment of US$1 million immediately upon signing -- funds have been received;
• Payment of US$1 million 180 days after signing; and
• Payment of US$1.5 million 12 months after signing.
Net Smelter Royalty -- Capped at US$8.0 Million
• 1% Net Smelter Royalty (NSR) on all properties acquired by CS Mining from Western Utah Copper Corporation and Copper King
• Both parties will file documentation dismissing pending litigation, claims and counter claims; and
• Certain non-mining real property assets not included in the original agreements have been transferred to CS Mining.
Pure Nickel's President and CEO David McPherson commented: "We are extremely happy to have reached an agreement with CS Mining; this settlement extracts value from the Milford, Utah, property immediately and provides for participation in the property as production comes on line in the near future".
Clinton Walker and David J. Richards, Directors of CS Mining, jointly stated: "The settlement of the long-standing litigation and recent emergence from bankruptcy will allow CS Mining to focus on its operating plan to restart operations".
About Pure Nickel Inc.
Pure Nickel is a mineral exploration company with a diverse collection of mineral exploration projects in North America. With approximately $3.1 million cash on hand and another $2.5 million to be received within 12 months, Pure Nickel is in a strong position to advance its property portfolio.
About CS Mining, LLC
Headquartered in Milford, Utah, CS Mining is located near the mineral rich Anaconda Skarn. CS Mining is in the business of mining and processing copper, gold, and silver through its existing flotation mill and has plans to expand its operations in the near future. (www.csmining.com)
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, expectations, plans, and objectives of Pure Nickel are forward-looking statements that involve various risks. The following are important factors that could cause Pure Nickel's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations and the extent to which the developers of the WUCC property are successful in their endeavours, the uncertainty of future exploration activities and cash flows, and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. Pure Nickel undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.
The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information, please contact:
CHF Investor Relations
T. (416) 868-1079
The Howard Group Investor Relations
T. (888) 221-0915
Pure Nickel Inc.
President and CEO
T. (416) 644-0066
Vice President Operations
T. (435) 387-5053
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