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NWT URANIUM UPDATES SHAREHOLDERS ON LETTER AGREEMENT FOR A BUSINESS
COMBINATION WITH NU-MEX
Toronto - December 13, 2007 - NWT Uranium Corp. (TSX-V: NWT;
OTCBB: NWURF) is pleased to provide its shareholders with additional details
regarding its previously announced letter agreement with Nu-Mex Uranium Corp. (OTCBB: NUMX).
As described in a press
release issued on November 19, 2007, NWT Uranium, with uranium properties in
northern Quebec, and Nu-Mex with uranium properties
in New Mexico, have signed a letter agreement pursuant to which Nu-Mex has agreed to acquire the issued and outstanding
shares of NWT.
"We believe that
this transaction will be of great benefit to NWT Uranium and its
shareholders," said Marek J. Kreczmer, President and CEO of NWT Uranium. "Nu-Mex has the ability to earn a majority interest in two
highly prospective uranium properties and it was these potential assets that
drew us to the combination.
Nose Rock and Dalton Pass
Nu-Mex
currently has the option to acquire a 65% interest in each of two highly
prospective uranium properties, called Nose Rock and Dalton
Pass, in New Mexico from Strathmore Minerals Corp.
Significant work has been
done by previous operators on both properties. No qualified person has done
sufficient recent work to classify the historical estimates under National
Instrument ("NI") 43-101.
Located within New Mexico's Grants
Mineral Belt, Nose Rock covers 5,000 acres (2,023 hectares). In
February, 1977, a
feasibility study was completed based on more than 470 holes drilled by
Phillips (now Conoco-Phillips), which owned and explored the property in the
late 1970s and early 1980s. The study was produced by Morrison Knutson,
renowned for its work on the Alaska Pipeline, Hoover Dam and Oakland Bay Bridge.
There is also a partially developed shaft on the property, which will aid in
exploration and development work.
Also located in New Mexico, the Dalton Pass
property covers a total area of 640 acres. A previous operator, Pathfinder
Mining Company (a subsidiary of nuclear giant Areva),
drilled over 130 holes.
NWT Uranium's properties,
which will be held by the combined company, include North Rae and Daniel Lake,
exploration-stage properties in Quebec
where the original results suggest a large potential resource. NWT's Picachos property in Mexico is a highly prospective
silver-gold project where exploration drilling is ongoing. NWT also holds
nearly 32,000,000 shares in Niger Uranium Limited (www.niger-uranium.com)
listed on AIM Exchange in London, a company
that holds several properties in the African republic of Niger.
A powerful new uranium
player
According to the terms of
the letter agreement, Nu-Mex will acquire NWT
Uranium on a three-for-one basis - that is, three shares of NWT will be
exchanged for one share of Nu-Mex. As part of the
transaction, Nu-Mex will arrange a financing of
between $10 million and $25 million. The two companies must enter a
definitive agreement by December 20, 2007, and Nu-Mex
must deliver a NI 43-101 compliant technical report for its Nose Rock property.
In addition, it is a condition that Nu-Mex shares
will be listed on a Canadian exchange.
The definitive agreement
is subject to approval by NWT Uranium shareholders, the Ontario Court of
Superior Justice and the TSX Venture Exchange, and requires a favorable fairness opinion. If these approvals are
received, the combined company will have a cash position of between $24
million and $40 million, without giving effect to expenditures to be made,
which includes NWT's current $14 million cash position and the $10 million to
$25 million financing, which is being raised as part of the transaction.
Nu-Mex
currently has approximately 33 million shares outstanding. NWT Uranium has
approximately 108 million shares outstanding. According to the valuation of
three NWT Uranium shares to one Nu-Mex share, NWT
Uranium's shares will consolidate to approximately 36 million shares. This
will give the combined company a total of approximately 70 million shares,
without giving effect to the shares to be issued as part of the financing.
Complementary
experience
Mr. Kreczmer
will lead the combined company, helping to ensure that NWT Uranium's
shareholders are well served by the acquisition.
Nu-Mex
executives bring extensive complementary experience in uranium exploration, extraction
and marketing. Richard Cherry, a Nu-Mex director,
is a veteran executive of the nuclear industry. He has worked for leading
companies in the areas of uranium mining, production, conversion, marketing
and power generation for over 34 years. Ganpat
Mani, also a Nu-Mex director, is an experienced
marketing executive with strong skills in negotiating long-term
multi-million-dollar contracts with major private and state-owned
corporations.
William D. Thomas,
currently the Chief Financial Officer (CFO) of NWT Uranium, will become CFO
of the combined company. Mr. Thomas is a chartered accountant with over 30
years of financial and management experience in international oil & gas
as well as mining ventures, including assignments in China, the UK,
Canada and the United States.
ABOUT NWT URANIUM:
NWT Uranium Corp. (www.nwturanium.com) is an
international resource exploration company with an experienced, highly
technical management team. Since its inception, NWT has concentrated on the
acquisition of properties with potential uranium targets. NWT Uranium is
listed on the NASD Bulletin Board under the symbol "NWURF" and the
TSX Venture Exchange under the symbol "NWT."
FURTHER INFORMATION:
Marek J. Kreczmer,
M.Sc., P.Eng.
President and CEO
NWT Uranium Corp.
(866) 437-9551
info@nwturanium.com
The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
This
news release includes certain "forward looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. Without limitation, statements regarding potential mineralization
and resources, exploration results, and future plans and objectives of the
Company are forward looking statements that involve various degrees of
risk. The following are important factors that could cause the
Company's actual results to differ materially from those expressed or implied
by such forward looking statements: changes in the worldwide price of mineral
commodities, general market conditions, risks inherent in mineral
exploration, risks associated with development, construction and mining
operations, the uncertainty of future profitability and the uncertainty of
access to additional capital.
Some of
the assays returned were below the detection limits of the analytical
techniques used to analyze samples.
Potential
quantity and grade is conceptual in nature. There has not been
sufficient exploration at Picachos to define a
mineral resource and it is uncertain if further exploration will result in
discovery of a mineral resource on the property.
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