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Uravan
Minerals Inc. (Uravan) and ESO Uranium Corporation
(ESO) entered into an Option to Purchase Agreement (the "Option")
whereby ESO granted Uravan an exclusive Option to acquire
100% interest in their Mathison Lake mining claims
(S-108465 and S-108466) (the "MATH project") in the Athabasca
Basin, Northern Saskatchewan. The MATH project totals 8121 hectares and
adjoins Uravan's Outer Ring (OR) project on the
north. The OR property is owned 100% by Uravan
and located along the Cable Bay shear zone in the Pasfield
Lake area.
The
Option is exercisable by Uravan over a three (3)
year term conditional on: (1) Uravan making a one time cash payment to ESO amounting to Twenty-five Thousand
Dollars ($25,000), (2) Uravan issuing an aggregate
of 1,000,000 Uravan Common Shares to ESO, in four
tranches of 250,000 Common Shares over three years, and (3) Uravan incurring an aggregate exploration expenditure on
the MATH project of not less than Two Hundred Thousand Dollars
($200,000). Subject to Uravan fulfilling the
terms of the Option, as described above, Uravan
will acquire 100% interest in the MATH project and ESO will retain a 2%
Uranium Royalty, a 2% Net Smelter Royalty on other non-uranium Mineral
Products and a 5% Diamond Royalty. The Option is subject to the
approval by the TSX Venture Exchange and any other appropriate regulatory
body. When issued, all Uravan Common Shares
issuable to ESO shall be subject to a four month hold period from the date of
issue.
A
surface geochemical program was completed over the OR project area in July
2010. The geochemical data from the Outer Ring sampling program capitalized
on new technology developed from a pilot study conducted on the Cigar West uranium
deposit (Cigar West Study) 1. The Cigar West Study was a
collaborative applied research program conducted by Uravan
and QFIR (Queen's Facility for Isotope Research) in 2009 over a known
high-grade uranium deposit. The study was designed to develop new surface
geochemical techniques that can better identify bedrock sources of uranium
mineralization at greater depths. This research clearly identified
distinctive elements and isotopic compositions that have been mobilized from
the deposit to the surface media from depths >450 meters. A similar
surface geochemical survey is planned for the MATH project in early June
2011.
1The
Cigar Lake deposit is on the Waterbury/Cigar uranium property; a joint
venture partnership between Cameco Corporation,
AREVA, Idemitsu Kosan Co. Ltd., and Tokyo Electric
Power Co. [TEPCO]) located in the Athabasca Basin, Saskatchewan. Uravan thanks both AREVA and Cameco
for their collaboration and gracious support for the Cigar West Study; and
the support provided by the Cigar Lake facility during our field operations.
The
Queen's Facility for Isotope Research (QFIR) at Queen's University, Ontario
is a state-of-the-art research facility, comprising a group of highly
experienced research geochemists. The QFIR lab contains some of the most
technologically advanced analytical equipment in Canada. Under the direction
of Dr. Kurt Kyser, the QFIR research team is
working collaboratively with Uravan's technical
group to develop new exploration technologies using applied research.
Dr.
Colin Dunn, an independent specialist in biogeochemistry, is working closely
with Uravan's technical group and QFIR to advance
the interpretation of biogeochemical results. Dr. Kurt Kyser
and Dr. Colin Dunn are key technical advisors for Uravan.
Uravan
is a Calgary Alberta based R&D mineral exploration company specializing
in developing new uranium exploration technologies. Our vision is to get to
discovery faster and more cost effectively in under-explored frontier areas. Uravan is pursuing exploration for potential high-grade
unconformity-related uranium deposits in the Athabasca and Thelon Basins in
Canada and other basin environments globally. Uravan
is a publicly listed company on the TSX Venture Exchange under the trading
symbol UVN. All of the mineral properties Uravan
owns are considered in the exploration stage of development.
This press release may contain forward looking
statements including those describing Uravan's
future plans and the expectations of management that a stated result or
condition will occur. Any statement addressing future events or conditions
necessarily involves inherent risk and uncertainty. Actual results can differ
materially from those anticipated by management at the time of writing due to
many factors, the majority of which are beyond the control of Uravan and its management. In particular, this news
release contains forward-looking statements pertaining, directly or
indirectly, to the following: risks associated with future issuances of Uravan Common Shares, work commitments and the receipt of
all required regulatory and other approvals as well as securities and other
market conditions and economic factors, business and operations
strategies. Readers are cautioned that the foregoing list of risk
factors should not be construed as exhaustive. These statements speak only as
of the date of this release or as of the date specified in the documents
accompanying this release, as the case may be. The Corporation undertakes no
obligation to publicly update or revise any forward-looking statements except
as expressly required by applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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