Laramide Resources Ltd.

Laramide Resources Ltd.

August 16, 2005 10:10 ET

Laramide Completes Westmoreland Acquisition

TORONTO, ONTARIO--(CCNMatthews - Aug. 16, 2005) - Further to the Company's news release of July 15, 2005, Laramide Resources Ltd. (TSX VENTURE:LAM) is pleased to announce that it has completed the acquisition of the Westmoreland copper-gold-uranium project in Queensland, Australia. Laramide completed the acquisition by way of a purchase of all of the shares of Tackle Resources Ltd, a private Australian company, in return for three million common shares of Laramide. The agreement with Tackle contemplates that a further 1.5 million shares of Laramide may be issued in future to Tackle based on successful delineation of copper and gold resources on the property. Westmoreland - which was most recently owned by CRA, a subsidiary of Rio Tinto plc - was discovered by Mount Isa Mines in 1956 and hosts one of the larger known uranium deposits in Australia. It is expected that the Westmoreland property will become the flagship asset of Laramide and is the core property holding in a much larger property portfolio that has been assembled in Queensland and the Northern Territory.

Laramide further reports that phase one of the Company's exploration program has commenced. Phase one includes a large-scale geophysical program of detailed, high-resolution airborne magnetics and radiometrics. Laramide has contracted for a 21,000 line kilometer survey with a flight height of 50 meters and a line spacing of 100 meters. This airborne survey began on August 3, 2005 and will be the first large-scale, high-resolution magnetic and radiometric airborne geophysical survey completed over the Westmoreland and Lagoon creek project areas.

Peter Mullens, Laramide's Vice-President Exploration and Corporate Development, stated: "We are very excited to finally conclude the Westmoreland transaction. This paves the way for us to begin a systematic and aggressive program of exploration and development on Laramide's 250,000 hectare land position. This land position occurs within one of the world's great protozeroic belts, a geological district that shares many similarities with the better known Athabasca basin in Canada, considered the world's premier uranium exploration district." Mullens went on to add, "Recent political events in the Northern Territory are an important development and add a welcome degree of certainty for investors exploring for uranium in Australia. Our early-entrant position into this arena has positioned Laramide exceptionally well within what has become a rapidly expanding uranium sector, particularly in light of the recent positive political changes that are now being seen."

A finder's fee of 300,000 shares has been paid to Ironbark Geoservices SRL as part of this transaction.

Under the guidelines of National Instrument 43-101 the required qualified person for the Westmoreland project is Mr. Mullens who is a member of the Australian Institute of Mining and Metallurgy.

Shares issued 37,914,622

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

Contact Information

  • Laramide Resources Ltd.
    Marc C. Henderson
    Toronto, Canada (416) 599-7363
    Laramide Resources Ltd.
    Peter Mullens
    V-P Exploration and Corporate Development
    Brisbane, Australia (617) 3831 3407