VANCOUVER, BRITISH COLUMBIA, Jun 27, 2007 -- Mesa Uranium Corp. (TSX VENTURE: MZU) ("Mesa") is pleased to report that it has broadened its relationship with Energy Fuels Inc. (TSX: EFR) ("EFR") by signing a Letter of Intent (LOI) to form a second joint venture to explore for high grade U3O8 in breccia pipes on 13 Arizona State School sections currently leased by Mesa and located in Coconino and Mohave Counties on the Arizona Strip in Northern Arizona.
Under the agreement Mesa will contribute 13 Arizona State School sections to the Joint Venture. Over the next three years EFR has committed to annual exploration expenditures of $500,000.00 on the properties. Additionally EFR will make a one-time payment of $200,000.00 to Mesa upon closing of the formal agreement. Upon completion of EFR's expenditure commitments, EFR will earn a 51% interest in the properties. EFR will be the operator of the joint venture, and if an economically feasible uranium deposit is located, EFR will be the mine operator.
During the 1980's and 1990's Energy Fuels Nuclear Inc. ("EFNI") mined eight breccia pipes in the Arizona Strip for a total uranium production of over 23 million lbs. U3O8 at an average grade of 0.61%. Energy Fuels Nuclear, Inc. was a uranium and vanadium company operating on the Colorado Plateau from the late 1970's through the early 1990's. Many of the directors, officers, and technical employees of EFR formerly were employees of EFNI. Mesa is pleased to have Energy Fuels as a partner with its vast technical expertise and historical operational experience to move the breccia pipe projects forward.
This Joint Venture agreement will enable Mesa to focus on its core projects, the Lisbon Valley Project in Utah where drilling is ongoing and the Moonshine Springs Project in Arizona where permits for drilling are being acquired.
Gregory French, P.Geo., a Qualified Person as defined by National Instrument 43-101 has reviewed and approved the content of this press release.
About Mesa UraniumMesa Uranium Corp. is an exploration company exploring for uranium in the Colorado Plateau region of southwestern United States. The company's land position is in excess of 31,500 acres of mineral claims and state leases in highly prospective uranium districts in Utah and Arizona. For further information about Mesa Uranium please visit our website at www.mesauranium.com.
ON BEHALF OF THE BOARD
MESA URANIUM CORP.
Foster Wilson, President and CEO
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company's annual filings that are available at www.sedar.com.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.Contacts: Mesa Uranium Corp.
Wayne Marsden
Toll Free: 1-866-337-1235
Website: www.mesauranium.com