Boss Power Corp.

Boss Power Corp.

May 18, 2012 09:30 ET

Boss Power to Finalize Settlement with BC Government

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2012) - Boss Power Corp. (TSX VENTURE:BPU) ("the Company") is pleased to announce that it is working collaboratively with the Province of British Columbia to finalize the closing of the settlement announced October 20th, 2011 in the matter of the expropriation of the Blizzard Uranium Properties east of Kelowna. The material terms of the settlement include a payment to Boss Power Corp. of $30,000,000 plus taxable costs and disbursements in return for the surrender or transfer of the Blizzard Uranium Properties.

The company has clear title to the Blizzard Mineral Claim which hosts a well-known uranium resource subject of a detailed positive engineering evaluation by Kilborn Engineering in the late 1970s. On May 30, 2007 the Company filed an NI 43‐101 compliant Technical Report on the Blizzard deposit prepared by Dr. Peter A. Christopher, Ph.D., P.Eng., in which the Kilborn historical reserve calculation of 2.2 million tonnes grading 0.214 percent U3O8, using a cut‐off grade of 0.025% U3O8 and 15% mining dilution (for an estimated 10.4 million pounds of U3O8) was re‐classified into an indicated and inferred resource to reflect current usage. The negotiated settlement of the lawsuit was predicated on detailed technical valuations of this resource.

As the parties worked towards finalizing the settlement it became apparent that a third party interest existed in properties peripheral to the Blizzard Mineral Claim and which the Province required surrendered in addition to the tenures owned outright by the Company. These properties are held in trust by the Company's subsidiary Blizzard Uranium Corp. as part of the original acquisition of the surrounding tenures. The Company has now made reasonable commercial efforts to compensate the tenure holder for his interest in these claims which are not known to host any proven mineral resource. No compensation has been agreed upon.

The company has now gained the support of the Province to refer the matter of these peripheral mineral claims and all other potential claims that may exist against the collective Blizzard Uranium Properties to mediation.

The Company has advised potential claimants that royalties have been frustrated by the government expropriation.

Boss Power Corp. has taken tax advice as to the application of the proceeds of the settlement and is actively seeking resource project acquisitions to build shareholder value.

The technical information in this news release has been reviewed by Randy Rogers, P.Geol., Boss Power's President and CEO and a Qualified Person as defined by National Instrument 43-101.

On Behalf of the Board of Directors

Boss Power Corp.

Randy Rogers, M.Sc., P.Geo., President & CEO

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Boss Power Corp.
    Randy Rogers, M.Sc., P.Geo.
    President & CEO

    Boss Power Corp.
    Tony Perri
    Investor Relations, Manager
    604-669-2543 (FAX)