Cash Minerals Ltd.
TSX : CHX

Cash Minerals Ltd.

August 09, 2005 18:56 ET

Cash Minerals Aquires Large Uranium Property In James Bay, Quebec

TORONTO, ONTARIO--(CCNMatthews - Aug. 3, 2005) -

- Completes Second Tranche of Private Placement Financing

CASH MINERALS LTD. (TSX VENTURE:CHX) has signed a binding letter of intent to acquire 100% of the Rupert River Uranium Property in the James Bay Territory of Quebec. The Property, comprising 588 square kilometers, has been optioned from The Sheridan Platinum Group through Tsar Emerald International AB. Past work on the Property indicates the occurrence of high uranium values gathered from Lake Bottom sediments and from past geochemical and geophysical surveys.

A 43-101 Report, recently completed by MRB & Associates (Jean-Pierre Berube, P. Eng is the Qualified Person for the report) is being filed on SEDAR. The report recommends a two phase program of exploration on the Property this year, at a cost of about one million dollars.

SUMMARY OF THE 43-101 REPORT

The Rupert River Property consists of 16 claim blocks covering 58,756 hectares (or 588 km2) in James Bay Territory, Quebec NTS 32O/10, 11, 12, 14 and 15. Situated approximately 400 km northeast of Matagami and 310 km northwest of Chibougamau in north-western Quebec, the westernmost claim block (32O12A) is traversed by a well-maintained gravel road that links the town of Chibougamau to the "Route du Nord" and to the town of Matagami.

Past exploration work on the Rupert River Property consists mainly in large scale geochemical and geophysical surveys made by major companies (Société de Développement de la Baie James or SDBJ, Inco, Noranda). There is evidence of the occurrence of high Uranium values gathered from Lake Bottom sediments collected from 1973 to 1975 by SDBJ. Tsar's property is located in the southern part of SDBJ's Area which is part of a 106,200 km(2) corridor where 18,450 samples have been taken. The area covered by Tsar "...is overlying granitic rocks and many of the (geochemical) anomalies may be caused by radioactive pegmatites and/or granites however the presence of associated metals such as Cu-Ni-Co suggests also the presence of vein-type uranium deposits," according to Gleeson (1976).

There are a number of factors which add to the attractiveness of the property;

-Uranium exploration targets generated with the combined use of lineament, ice direction movement and detailed airborne magnetic / radiometric surveys, remain untested;

-No drilling in any of the Uranium anomalies that were detected by the SDBJ in 1975;

-Ideal area for prospecting due to the smooth topography, sparse vegetation, large outcrops, and numerous boulder fields.

A two phase exploration program is proposed:

Phase 1: The first phase should include a combined airborne magnetic, time domain electromagnetic and gamma-ray Spectrometry geophysical survey over the geochemical anomalies, followed by ground prospecting work, including Beep-mat coverage and boulder sampling. Some compilation work will be needed to combine all past and present data in order to generate drilling targets, as well as a lineament study from satellite images.

Phase 2: Once the targets have been properly identified and geo-referenced, surface diamond drilling work will be required to follow-up on favourable structures, where there are reasonable possibilities to reach potential resources of 5 million tonnes grading 0.5% U3O8 or more from the Uranium occurrences already identified.

Under the terms of the agreement between Tsar Emerald AB and The Sheridan Platinum Group, which is being assumed by Cash Minerals, Cash will pay $250,000 and issue 800,000 shares to Tsar Emerald and assume Tsar's rights and obligations under the agreement with Sheridan Platinum. The remaining obligations under the agreement with Sheridan Platinum are the issuance of 200,000 common shares at the time of transfer, and on December 1, 2005, the issuance of an additional 2,000,000 shares and a cash payment of $400,000, subject to a Royalty Interest retained by The Sheridan Platinum Group. The Royalty Interest is a 3% royalty interest on the first 2,000,000 pounds of uranium produced from the Property. Upon 2,000,000 pounds of uranium being produced from the Property, Cash Minerals would make a payment to The Sheridan Platinum Group in the amount of CDN $1,000,000 and the royalty interest shall increase to 4% (of which 1% can be purchased by Cash Minerals) for $1,000,000.

In order to acquire its interest, Tsar Emerald has paid Sheridan Platinum $100,000, completed a 43-101 report, and conducted detailed legal and technical due diligence on the Property.

"The acquisition of additional uranium properties is consistent with Cash's stated goal of becoming an energy company in North America. Combined with our uranium properties in the Yukon, we hope to become a significant player in the uranium exploration area in the near future" stated Basil Botha, President and CEO of Cash.

Private Placement Financing

Additionally, the Company has completed the second tranche of its previously announced brokered private placement through the issuance of 108,571 flow through units (the "Flow Through Units") priced at $0.35 and the issuance of 30,000 units (the "Units") priced at $0.30 for total gross proceeds of $46,999.85. Pacific International Securities Inc. acted as agent in connection with the financing and received $2,819.99 in commission as well as broker warrants, entitling it to purchase 8,314 Common Shares at $0.40 until August 9, 2006.

Each Flow Through Unit consists of one flow through share and one half of one flow through share purchase warrant. Each whole flow through share purchase warrant entitles the holder to purchase one additional flow through share, at $0.60 until August 9, 2006. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one additional common share, at $0.45, until August 9, 2006.

All securities issued pursuant to the second tranche of this private placement are subject to a hold period that will expire on December 10, 2005.

The proceeds of the Offering from the sale of the Units will be used to fund exploration of the Company's coal and uranium assets in the Yukon, and for general corporate purposes, while the proceeds from the sale of the Flow Through Units will be used exclusively for the exploration of the Company's coal and uranium assets.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any state securities laws an may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registrations is available.

ABOUT CASH MINERALS

The Division Mountain Coal Project.

The Division Mountain Coal Project lies 20 km west of Highway 2 and Yukon's main power grid, and 290 km from the tidewater port at Skagway, Alaska. The Project is owned 100% by Cash Minerals Ltd and consists of five Coal leases measuring 776.4 hectares and 22 Territorial Coal Exploration licenses covering 360,000 hectares. The exploration area covers 4,017 square kilometres of coal bearing stratigraphy.

A recently completed NI 43-101 Report on the Project by Norwest Group confirmed a Measured & Indicated (M&I) Resource of 51.6 million tones of coal. A subsequent scoping study, also completed by Norwest, indicated that the Project is potentially viable. Cash is conducting exploration work, geologic and economic studies and wide ranging environmental surveys in anticipation of application for mining permits. A full bankable feasibility study by Norwest is in progress and is scheduled for completion by September 2005.

Uranium Exploration

In addition to the Division Mountain Coal Project. the Company also has a right to earn an interest in six significant uranium projects in Yukon Territory, including four in the Wernecke Mountain area of northeastern Yukon. These uranium projects are hosted in Proterozoic age iro-oxide rich breccia bodies that share numerous textural and mineralogical similarities to the IOCG deposit (Iron-Oxide-Copper-Gold) model, which include Olympic Dam, Ernest Henry and Candelaria. Two uranium properties, (one in west-central and one in southeastern Yukon), are both hosted in Cretaceous granitic intrusions and are best viewed as bulk tonnage uranium targets, modeled on the Rossing Deposit in Southern Africa. All of the uranium projects have considerable existing data as they were aggressively explored by majors in the late 1970s and early 1980. A 2,800 metre drill program of approximately 24 holes is currently in progress on four of the Uranium properties in Yukon.

Cash Minerals Ltd. (www.cashminerals.com) is an emerging energy resource company listed on the TSX Venture Exchange under the symbol "CHX". The Company has approximately 33.4 million shares outstanding.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Cash Minerals Ltd.
    Basil Botha
    President & C.E.O.
    (604) 608-6175
    or
    Cash Minerals Ltd.
    David Meyer
    Business Consultant
    (416) 861-5891