First Point Minerals Corp. : Cliffs Refuses to Provide First Point with Key Data
05/05/2012 | 11:47am US/Eastern
Vancouver, May 5, 2012 -- First Point Minerals Corp.
(FPX-TSX.V) ("First Point" or the
"Company") announces that it has served notice of
arbitration on Cliffs Natural Resources Exploration Canada Inc.
and Cliffs Natural Resources Exploration Inc. (collectively
"Cliffs") over Cliffs' refusal to provide First
Point with information prepared by their consultants with
respect to the Decar Nickel-Iron Alloy Project in British
Cliffs has refused to provide First Point with certain key
reports prepared by consultants and contractors with respect to
the Decar Project. The reporting obligations under the Option
Agreement currently in effect require that Cliffs provide First
Point, on a timely basis, with: "...copies of all
reports...and consultants' and contractors'
First Point regrets having no alternative to taking this step
against a major company such as Cliffs, but repeated requests
by First Point for delivery of the information have been either
refused or ignored, and Cliffs' refusal thus far to provide
these reports is damaging the interests of First Point and its
shareholders. Management of First Point cannot speculate on the
possible nature of the content of the reports that would cause
Cliffs to refuse to share the information with First Point as
required in the Option Agreement.
The market capitalization of Cliffs' parent company is
US$8.6 billion; the market capitalization of First Point is
C$53 million. Cliffs currently holds a 15% stake in the First
Point parent company. The Cliffs ownership interest in First
Point is subject to a standstill agreement through December 27,
First Point is the original owner of a 100% interest in the
Decar Project, which First Point believes to be the first
property of its type anywhere in the world to be explored for
possible commercial production of nickel entirely from
awaruite, a naturally-occurring nickel-iron alloy, effectively
naturally-occurring "stainless steel". Under the
terms of the Option Agreement currently in effect between First
Point and Cliffs, Cliffs has earned a 51% interest in the
Project and has agreed to prepare a NI-43-101 compliant
Preliminary Economic Assessment ("PEA") by March,
2013, delivery of which would increase Cliffs' interest in
the Project to 60%.
On April 16, 2012, First Point announced the maiden Inferred
resource for the Project, totaling 1.2 billion tonnes grading
0.113% Davis Tube Recoverable Nickel ("Davis Tube
Recoverable Nickel" refers to the basis on which the
Inferred resource for the Decar Project has been estimated and
reported, details of which are provided in the First Point
press release, dated April 16, 2012, announcing the resource),
or 1,352,610 tonnes of contained Davis Tube Recoverable Nickel,
based on a cut-off grade of 0.06%. Under the terms of the
Option Agreement, Cliffs is the manager of the ongoing
exploration, metallurgical testing, market study and PEA
programs on behalf of the Project. The mineral resource
estimate was prepared by Caracle Creek International Consulting
Inc. ("Caracle Creek"), which supervised and managed
the 2011 drilling program at Decar on behalf of Cliffs. The
mineral resource block model was reviewed on Cliffs' behalf
by Roscoe Postle Associates ("RPA"), an engineering
and geological consulting firm.
About First Point
First Point Minerals Corp. is a Canadian base and precious
metal exploration company. For more information, please view
the Company's website at www.firstpointminerals.com
or contact Jim Gilbert, President and CEO, or Rob Robertson, VP
Corporate Development, at (604) 681-8600.
On behalf of First Point Minerals Corp.
James Gilbert, President and CEO - TSX Venture Exchange:
Suite 906 -- 1112 West Pender Street
Vancouver, BC Canada V6E 2S1
Tel: 604.681.8600 Fax: 604.681.8799
Neither the TSX Venture Exchange nor its Regulation Services
responsibility for the adequacy or accuracy of this release.