Pacific Iron Ore Corporation was formed on July 3, 2008 through an amalgamation agreement to combine privately held Emerald Fields Resource Corporation and publicly traded Klondike Capital Corp. The agreement was approved by a special vote of shareholders of each corporation and was subsequently approved by regulatory authorities. The new publicly traded Corporation’s founding purpose is to focus on exploration of the Pearson Project iron ore prospects on Vancouver Island, British Columbia.
Key events leading to Pacific Iron Ore’s formation, including historical prospecting and exploration activities by predecessor companies on Pacific Iron Ore’s current mineral claims, as well as the new Corporation’s development plan, are detailed below.
|Historical mineral exploration on current Pacific Iron Ore claims|
|1898||First iron ore outcrop discovered and first claims staked at Bugaboo Creek, within area now covered by Pearson Project.|
|1907||Further exploration of area by other parties, including physical digs, leads to further iron ore discoveries.|
|1957-1960||Extensive, systematic exploration by Noranda Exploration Company Limited, including numerous core holes drilled, logged and analyzed, and reserve estimates under historical (non-N.I. 43-101) standards.|
|1971-1974||Extensive exploration by another company, including further core hole drilling and reserve estimates using historical (non-N.I. 43-101) standards.|
|October 1997||Emerald Fields Resource Corporation incorporated in Kenora, Ontario as private mineral exploration venture.|
|2002||Emerald Fields becomes 100 percent working interest holder over a group of mineral claims near Port Renfrew, Vancouver Island, B.C., known as the Pearson Project.|
|1997-2008||Emerald Fields accumulates mining prospects in British Columbia and Ontario. As of September 1, 2007 these total 640 claims on 297,313 hectares on Vancouver Island (including Pearson Project of 63,389 hectares) and seven properties totalling 12,816 hectares in Ontario, plus minor claims in Manitoba.
Emerald Fields conducts extensive exploratory work revealing strong potential for magnetite iron ore at Pearson Project and varying potential for copper, zinc, gold, petalite (lithium), tantalum and tin at the Ontario properties, as well as potential for decorative stone, gravel, sand and clay. Company moves headquarters to Calgary, Alberta, Cavendish Investing Ltd. becomes controlling shareholder, and Richard Bonnycastle becomes Chairman.
|2003-2008||Technical work strengthens indications of resource potential on Vancouver Island. See Technical Report - Geological Summary, Pearson Project, British Columbia. This report is also available on SEDAR. Report notes extensive deposits of magnetite at Pearson Project, and recommends additional exploration work program.|
|Formation of Pacific Iron Ore|
|Summer/Fall 2007||Emerald Fields embarks on new strategic direction to support enlarged exploration program, which includes new management team (Todd Montgomery, CEO, and Leonard Cornez, interim CFO) and plan to become publicly traded.|
|June 9, 2007||Klondike Capital Corp. formed as capital pool corporation headquartered in Alberta. Mr. Montgomery becomes president, CEO and a director. January 30, 2008, Klondike completed its initial public offering and March 11, 2008, Klondike was listed on the TSX Venture Exchange (KLC.P), with trading withheld pending completion of Klondike's required qualifying transaction.|
|April 11, 2008||Emerald Fields and Klondike boards of directors sign amalgamation agreement to merge. Agreement to become effective that date pending subsequent approval by shareholders and regulatory authorities.|
|July 3, 2008||Shareholders of each company vote to approve amalgamation agreement at special meetings of each company.|
|July 8, 2008||As part of amalgamation, Emerald Fields completes brokered private placement of common shares, issuing 5.2 million non-flow-through common shares at $0.40 per share for gross proceeds of $2.1 million and 9 million flow-through common shares at $0.50 per share for gross proceeds of $4.5 million. Agents receive approximately $0.5 million in costs and compensation, for net proceeds of $6.1 million.
Pacific Iron Ore commences with 51.6 million pro forma common shares plus 4.1 million options and 1.1 million broker's warrants at $0.40 per common share. Principal assets are mineral claims valued at $4.2 million and cash of $6.4 million.
|July 8, 2008||Alberta Securities Commission and TSX Venture Exchange approve amalgamation agreement. Agreement closes.|
|July 21, 2008||Pacific Iron Ore's common shares commence trading on TSX Venture Exchange.|
|Pacific Iron Ore go-forward development plan|
|2008-2009||June 2008 commenced initial development plan at Pearson Project as recommended in previous technical report, including:
As exploration progresses, the Corporation will begin consolidating its claims to focus on most promising areas. The Corporation's efforts in 2009 will include the extensive evaluation of the 2008 Exploration Program and completion of the following reports: Preparation of a resource estimate by Wardrop Engineering Inc., of Vancouver, B.C. for the Bugaboo Creek area; Preparation of a 43-101 compliant Technical Report on the St. Anthony's project; Preparation of a 43-101 compliant Technical Report on the Separation Lake project.
Other activity will include: Diamond Drill core samples as recommended in the above reports; Geological Mapping of anomalies identified in the Fugro Survey. Early results will be evaluated and exploration activities adjusted accordingly.
Corporation will work to obtain initial permits and regulatory approvals.
Depending on ongoing exploration results the Corporation will consider opportunities for early cash flow generation through production of gravel, clay or marble.
|Next number of years||Following further exploration, if successful in proving up commercial reserves, Corporation to develop Pearson Project mine plan and conduct environmental impact studies, permitting processes, negotiations with First Nations and business development.|
|Ontario properties||Pacific Iron Ore intends to maintain mineral claims, complete a 43-101 report on selected properties in 2009, and at a later date form one or more joint ventures with appropriate partners to pursue development of one or more of the properties.|