White Canyon Uranium Limited

White Canyon Uranium Limited

March 02, 2011 09:11 ET

Final Details of White Canyon Uranium Ore Processing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 2, 2011) - Further to the release made by White Canyon Uranium Limited (TSX VENTURE:WU)(ASX:WCU) ("White Canyon" or the "Company") on February 25, 2011 regarding the recently completed sale of 107,000 pounds of U308, the Company wishes to advise that:

  • The gross proceeds from the completed sale were US$7.4 million;

  • The cost of the milling process (including milling, receiving, selling and other attendant costs) to the Company was determined pursuant to the Toll Milling Agreement (dated January 2010). This cost was settled by the Company predominantly in-kind in U3O8 due to the fact that at the time of commencement of milling (November 2010) the Company had limited cash resources required to pay Denison Mines Corp. (TSX:DML)(NYSE Amex:DNN) ("Denison") for undertaking the milling. The Company transferred 86,650 pounds of U3O8 to Denison under the provisions of the Sales Agency Agreement with Denison (dated October 2010);

  • Overall, the milling of the initial ore and the subsequent sale of U3O8 was carried out in accordance with the provisions of the Toll Milling Agreement (dated January 2010) and Sales Agency Agreement (dated October 2010); and

  • Following both the sale of the Company's U3O8 and the in-kind payment of milling costs, and given the first milling run yielded 204,450 pounds of U308, White Canyon Uranium has 10,800 pounds of U3O8 remaining, of which 10,223 pounds of U3O8 represents a holdback pending final accounting with respect to the milling process and, along with the remaining 577 pounds of U3O8, will be offered for sale when released.

About White Canyon

White Canyon Uranium Limited is a Perth, Western Australia-based company focused on acquisition, exploration, and development of uranium producing properties. The Company's U.S. operations are headquartered in Moab, Utah and comprise multiple mining tenements covering approximately 15,500 acres in Southern Utah.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information