Long Harbour Capital Corp.
TSX VENTURE : LHC

March 08, 2011 16:09 ET

Long Harbour Signs Agreement to Option Property Claims in the Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO UNITED STATES RESIDENTS

Long Harbour Capital Corp. (TSX VENTURE:LHC) (the "Company") reports that it has entered into an Agreement with U.S. Mine Makers Inc. whereby the Company has been granted an option to acquire a 90% interest in the Don Lake Property located in the Athabasca Basin (the "Option"). This transaction is subject to receipt of TSX Venture Exchange approval and final documentation.

The Don Lake Property consists of 7 claims covering 1409 hectares adjacent to Uranium City in northern Saskatchewan. The claims encompass a number of past producing uranium mines which include the Cayzor Athabasca Mine, the Rix Smitty, the Rix Leonard, the Don Lake, the St. Michael Mine, the Consolidated Beta-Gamma and the Leonard Mine. These properties had produced uranium from surface pits or shallow workings and were abruptly closed when uranium prices fell in the 1980's.

These claims are located within the Beaverlodge Domain which is dominated by the rocks of the Murmac Bay Group, a greenschist to lower-amphibolite-facies supracrustal succession in it stype area. The Beaverlodge Domain includes a suite of 2.35 – 2.3 Ga aged diabase dykes that cut the dominant granites. The historic Beaverlodge Camp, in the Uranium City area where the initial discovery and development of uranium deposits occurred on the north shore of Lake Athabasca, produced over 70 million pounds of uranium between 1953 and 1982.

In order to exercise the Option, the Company is required, over a period of three years, to pay $200,000, issue 700,000 common shares and incur exploration expenditures totaling $1.85 million. A 1.0 % net smelter returns interest is to be retained by U.S. Mine Makers Inc., of which 0.5% may be purchased by Long Harbour for $500,000.

A concurrent financing is planned in connection with this transaction through a non-brokered private placement which consists of 4.4 million units at $0.25 per unit for gross proceeds of $1,100,000. Each unit consists of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder to purchase one common share for a period of 18 months at an exercise price of $0.45 for the first twelve months, and thereafter at an exercise price of $0.65 for the remainder of the 18 month period. If, during the first twelve months of the exercise period, the closing price of the Company's shares is $0.90 or higher for ten consecutive days on which the shares trade, then at the Company's election any unexercised warrants will automatically expire on the 30th day following notice to the warrant holders. If, during the last 6 months of the exercise period, the closing price of the Company's shares is $1.20 or higher for ten consecutive days on which the shares trade, then at the Company's election any unexercised warrants will automatically expire on the 30th day following notice to the warrant holders.

The Company will pay finder's fees on the transaction and financing describved in this news release, subject to approval of the TSX Venture Exchange.

The technical information in this news release was reviewed by Kent Ausburn, a director of Long Harbour and a Qualified Person as defined in NI 43-101.

Neither the 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 news release.

Contact Information

  • Senergy Communications Inc.
    Graham Johnstone
    778-331-2030
    lhc@senergyir.com
    www.senergyir.com
    or
    Long Harbour Capital Corp.
    Geoff Lee, CFO
    604-602-9222
    604-648-2201 (FAX)