Bearclaw Capital Corp.

Bearclaw Capital Corp.

January 17, 2008 09:21 ET

Bearclaw Capital Corp.: Execution of the Formal Agreement Relating to the Acquisition of Prospective Uranium Properties in the James Bay Region of Quebec

MONTREAL, QUEBEC--(Marketwire - Jan. 17, 2008) - Bearclaw Capital Corp. (TSX VENTURE:BRL) ("Bearclaw" or the "Company") announces that it has executed the binding agreement for the acquisition of four prospective uranium properties in the James Bay region of Quebec. In this regard, the Company would like to update its October 5th, 2007 press release, in which it announced that it had entered into a non-binding letter of intent concerning an option to acquire the properties in consideration for a total payment of $1.1 million, the issuance of 6.5 million common shares, and $5 million in exploration expenditures. The terms of the binding agreement are as follows: at the closing of the transaction, which will occur two days following the receipt of final regulatory approval, Bearclaw will acquire a 100% interest in four properties located in the James Bay area. Bearclaw will pay $1.4 million and issue 3 million common shares on closing. At the signing of the Letter of Intent on October 5, 2007, Bearclaw paid a cash advance of $250,000, which shall be deducted from the $1.4 million payment.

Bearclaw has agreed to make the following supplementary and conditional milestone purchase price payments:

1. After having spent $2.5 million one of the four properties, the Company will pay $350,000 and issue an additional 2 million common shares.

2. After having spent a cumulative amount of $5 million on one of the four properties, the Company will pay a final $350,000 and issue an additional 1.5 million common shares.

3. Finally, 1 million common shares will be issued upon the completion of a pre-feasibility study, and an additional 1 million common shares will be issued upon the completion of a bankable feasibility study.

The royalties announced in the October 5th press release remain unchanged. The securities issued by the Company will be subject to a four month hold period from their date of issuance. Furthermore, the vendor has agreed to voluntary escrow provisions whereby the initial common shares received by him will be escrowed over a period of twenty-two months. The transaction is subject to the final approval of the TSX Venture Exchange.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Bearclaw Capital Corp.
    Christian de Saint-Rome