Pacific North West Capital to sell Nixon Fork Gold Mine to Fire River Gold

Pacific North West Capital (TSX: PFN; OTCBB: PAWEF) reaffirmed its intention to remain focused on platinum group metals (PGM’s) and nickel today, announcing that it had granted an option to Fire River Gold (CNSX: FAU) to acquire its Nixon Fork Gold Mine in Alaska.

Fire River Gold will pay Pacific North West Capital US$50,000 on signing the option agreement and will pay a further US$450,000 over six months and issue 6.415 million shares to Pacific North West Capital if it chooses to exercise the option to acquire the project in full. The transaction places a US$3 million price tag on the Nixon Fork property, and post transaction, Pacific North West will hold approximately 64% of Fire River Gold. Pacific North West will also be issued 1 million share purchase warrants with an exercise price of 50 cents per share, and Fire River Gold will refund C$1.25 million in expenses incurred by Pacific North West at Nixon Fork.

“PFN's management has examined several possible scenarios for advancing the Nixon Fork Gold Project, and has had discussions with numerous groups interested in funding the project,” the company stated. “The general consensus of these discussions is that Nixon Fork should be funded through a company that is completely focussed on gold.”

Pacific North West went on to say that it believed the shareholder structure of Fire River Gold was better suited to raise the necessary capital to re-develop the mine.

“Management's expertise remains rooted in exploration, and to that end, PFN is currently negotiating on several advanced stage projects in Canada, and subject to the completion of one or more of these acquisitions, plans to expend a minimum of $1 million in Canada before year end,” it noted.

Pacific North West Capital’s current option/joint ventures agreements are with Anglo Platinum, First Nickel, Kinbauri Gold and Fire River Gold.

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