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FORUM URANIUM
NEWS RELEASE
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NEWS RELEASE
FORUM SIGNS MOU WITH NUNAVUT TUNNGAVIK INCORPORATED
FOR EXPLORATION OF INUIT OWNED LAND NEARBY AREVA'S KIGGAVIK URANIUM DEPOSIT,
NUNAVUT
Vancouver, B.C.
December 2, 2008. Forum Uranium Corp. (FDC: TSX-V) is pleased to announce
that it has entered into a Memorandum of Understanding (MOU) with Nunavut
Tunngavik Incorporated (NTI) to earn a 100% interest in all minerals on
27,344 hectares of the northern half of Inuit Owned Land (IOL) parcel BL-21,
located 20 kilometres east of Areva's 148 million pound Kiggavik uranium mine
development project and 60 kilometres west of the Hamlet of Baker Lake,
Nunavut (See: www.forumuranium.com/i/maps/North-Thelon-Project-Map2.jpg). Areva is currently conducting a feasibility study on the Kiggavik
project.
Rick Mazur, President & CEO of Forum Uranium states, "Forum has been
exploring in the Kiggavik area for two years now and has identified a major
structure with associated uranium occurrences that extends onto IOL Parcel
BL-21 where grades up to 0.52% have been discovered. This structure is
parallel to the trend that hosts the Kiggavik deposits to the west. Our work
has concluded that there is significant potential for more ore bodies to be
discovered in an area where there already is a world class deposit like
Kiggavik. Our partnership with NTI adds an important dimension to our
commitment to uranium exploration in Nunavut"
"I am happy that
we have signed this MOU with Forum Uranium Corp." said James Eetoolook, 1st
Vice President of Nunavut Tunngavik Incorporated, "Forum Uranium is a
good partner, well situated in the Thelon Sedimentary Basin, with a strong
team and record of managing good exploration programs."
IOL Parcel BL-21
This parcel of
Inuit-owned surface and subsurface land is situated along an east-west belt
of favourable rocks (meta-sediments) that host the Kiggavik deposits
(Kiggavik, End and Andrew Lake deposits) between Forum's ground optioned from
Agnico-Eagle Mines Limited on the west, Forum's ground optioned from
Tanqueray Resources Ltd. on the east, and south of 100% owned Forum
ground. Several historical outcrop occurrences of uranium occur in
BL-21, with grades of up to 0.52% U3O8.
An apparent resistivity survey (Fugro) conducted in the spring of 2008 over
Forum ground has revealed several N070� structures and a major north-east
structure that continues onto the IOL package. The north-east (N045�)
structure is of particular importance as it is parallel to the Kiggavik trend
and has several uranium showings associated with it. The intersection of
these structures, in combination with the metasediments, produces a similar
geological setting to that which hosts the Kiggavik deposits.
Preliminary plans for 2009 are to cover this
structure with ground gravity grids and till sampling. Targets generated by
these surveys will be followed up by a diamond drill program, which will
include further testing of Forum's Tarzan area that lies on the south end of
the Kiggavik trend.
Terms
of the Memorandum of Understanding
- Forum
will pay a $500 signing bonus and commit to the execution of an
Exploration Agreement within 90 days.
- Upon
signing of the Exploration Agreement, Forum will pay $0.50 per hectare
as an annual rental fee for the first year, complete an initial
exploration program of compilation of historical data, geological
mapping and an airborne geophysical survey to a minimum of $4.00 per
hectare in the first year and issue 1 million shares of the Company
within six months. Shares issued will be released for trading over a 24
month period.
- Forum
will pay annual rental fees and minimum annual exploration work
requirements during the term of this agreement as per NTI schedule.
- Forum
will conduct additional exploration of prospecting, mapping ground
geophysics and 2,500 metres of diamond drilling within 5 years. Forum
will charge a 10% Operators Fee to the project account (5% on contracts
over $100,000).
- Upon
completion of a National Instrument 43-101 measured resource of 10
million pounds U3O8 or 100 million pounds U3O8, Forum will pay a $1 million
and $5 million cash bonus respectively. Upon completion of a National
Instrument 43-101 measured resource of 500,000 ounces of gold or 5
million ounces of gold, Forum will pay a $1 million and $5 million cash
bonus respectively. Within 30 days of production, Forum will pay a $1
million cash bonus. Advance royalty payments of $50,000 annually will be
payable upon meeting these milestones.
- Forum
shall grant a 2% Net Smelter Return (NSR) Royalty to NTI on Forum's
100%-owned Tarzan and Nutaaq properties. Forum has the right to purchase
l% of this NSR Royalty from each of these properties for $1 million
each.
- As a
consequence of the land claims settlement between NTI and the Government
of Canada, IOL Parcel BL-21 is not subject to royalties to the Crown. Instead,
NTI will receive a 12% Net profits Royalty, limited to 75% of gross
revenues. The value of any uranium component of the gross revenues shall
be 130% of the actual value of uranium.
- Upon
completion of a Feasibility Study that recommends production, NTI will
have the election to either form a joint venture and hold a 20%
participating interest or, be granted a 7.5% Net Profits Royalty that
will be calculated in the same manner as the 12 % Net Profits Royalty
with the exception that gross revenues shall include the actual value
received from any uranium component.
The MOU is
subject to regulatory approval.
About
Forum Uranium
Forum Uranium Corp. is
a Canadian-based energy company with a focus on the acquisition, exploration
and development of Canadian uranium projects in the Athabasca Basin,
Saskatchewan and the Thelon Basin, Nunavut. Forum has assembled a highly
experienced team of exploration professionals with a track record of mine
discoveries for unconformity-style uranium deposits in Canada. The Company
has a strategy to discover near surface uranium deposits nearby existing
infrastructure by exploring on its 100% owned properties and through
strategic partnerships and joint ventures.
ON BEHALF OF THE BOARD
Richard J. Mazur,
P.Geo.
President & CEO
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
For further
information contact:
Rick Mazur
President & CEO
Tel: 604 630-1585
or
Mark Prosser
Corporate Communications
FORUM URANIUM CORP.
910-475 Howe Street
Vancouver, BC V6C 2B3
Tel:
604-630-1585
Fax: 604-662-8429
Email: info@forumuranium.com
Website: http://www.forumuranium.com/
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