Bearclaw Capital Corp.
TSX VENTURE : BRL

Bearclaw Capital Corp.

October 05, 2007 08:00 ET

Bearclaw Capital Corp.: Option to Acquire Prospective Uranium Properties in the James Bay Region of Quebec and Private Placement

MONTREAL, QUEBEC--(Marketwire - Oct. 5, 2007) - Bearclaw Capital Corp. (TSX VENTURE:BRL) ("Bearclaw") is pleased to announce that it has entered into a non-binding letter of intent with Minexco Inc. ("Minexco"), a Quebec-based private company, whereby Bearclaw would have the option to acquire a 100% interest in four prospective uranium properties, comprising 1,582 claims (792 sq.kms.), in the James Bay region in Quebec.

"This James Bay acquisition, added to our recently acquired Wakeham Basin project, and to our 10 Copper-VMS projects in British Columbia reinforces Bearclaw's position as a significant pan-Canadian exploration company", declared Christian de Saint-Rome, Bearclaw Capital's recently-named President and CEO.

In order to exercise the option, Bearclaw will pay a total amount of $1.1 million, issue a total of 6.5 million common shares to Minexco and several other prospectors and incur expenditures totalling $7,500,000, the whole over a period of several years. After incurring $2.5 million in exploration expenditures, Bearclaw will pay another cash amount of $350,000 and issue another 2 million common shares. After incurring a total of $5 million in exploration expenditures, Bearclaw will pay a final cash amount of $350,000 and issue an additional 1.5 million common shares. Bearclaw will also reimburse Minexco for exploration expenditures made prior to the closing of the transaction, said reimbursement shall apply to the initial exploration expenditures to be incurred by Bearclaw. Furthermore, Minexco and several other prospectors will receive an additional 1 million shares should a pre-feasibility study be conducted and another 1 million shares should a bankable feasibility study also be conducted. At the closing of the transaction, Bearclaw will pay a cash amount of $400,000 and issue a total of 3 million common shares. Bearclaw will also grant a yellow cake royalty of 2% or 3% (depending upon the price of uranium), payable upon the commencement of commercial production of any uranium deposits on the properties, and a 2% net smelter return royalty, payable upon the commencement of commercial production of any mineral deposits other than uranium on the properties. A finder's fee is payable in accordance with TSX Venture Exchange policies upon the closing of the transaction.

Closing of the acquisition is subject to a number of conditions, including the receipt of the required regulatory approvals, the completion by Bearclaw of a satisfactory due diligence on the properties, the execution of a formal agreement and the completion of a financing for minimum proceeds of $2,900,000. In this regard, Bearclaw intends to carry out a brokered private of non flow-through units priced at $0.60 per unit. Each non flow-through unit will be comprised of one common share and one half common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share of Bearclaw at a price of $0.89 per share for a period of 24 months following the closing of the offering. There can be no assurance that these transactions will take place as proposed, or at all.

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
    President
    514-876-1001