Monster Uranium Corp.
TSX VENTURE : MU

Monster Uranium Corp.

June 06, 2008 18:30 ET

Monster Uranium Executes Letter of Intent to Acquire Aurora Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2008) - Monster Uranium Corp. ("the Company" or "Monster") (TSX VENTURE:MU) is pleased to announce that it has entered into a Letter of Intent ("LOI") with Uranium One Inc. ("Uranium One") to acquire a 100% interest, subject to a 2% net smelter royalty, in the Aurora Property located in southern Oregon (the "Property").

Aurora Property

The Aurora Property is located in southern Oregon approximately three miles from the Nevada border and approximately 10 miles west of the small border town of McDermitt, Nevada.

Terms of Transaction

The LOI sets out the principal terms upon which the Company can acquire a 100% interest in the Property, subject to a 2% royalty. The purchase price for the Property will be $5 million in cash and 2,000,000 common shares of the Company. The Company paid a cash deposit in the amount of $1 million on signing the LOI, of which $250,000 is non-refundable. The Company will pay a cash finder's fee of $250,000 to an arms length third party in connection with the transaction.
The completion of the transaction is subject to the execution of a definitive agreement, legal and technical due diligence by the Company, and the approval of the TSX Venture Exchange.

Financing

In order to fund the acquisition and costs of exploration and development of the Aurora Property, the Company intends to complete a unit financing of a minimum of 10 million and maximum of 15 million units at $0.40 per unit. Each unit will be comprised of one share and one half on one share purchase warrant exercisable for a minimum of two years. The exercise price of the warrant shall be a minimum of $0.70 (subject to regulatory policies) and have a provision for early expiry, at the option of the Company, if the closing price of the Company's for 10 consecutive trading days is over $1.00. The Company will pay finder's fees on the funds raised.

The proposed financing is subject to the approval of the TSX Venture Exchange.

The Company has also granted options to purchase 2,160,000 common shares at a price of $0.40 per share to directors, officers, employees and consultants. The options are exercisable for a period of 5 years from the date of grant.

About Monster Uranium Corp.

Monster Uranium Corp. (TSX VENTURE:MU) is an exploration company focused on the acquisition and development of high-quality uranium properties. Our strategy is to acquire advanced-stage uranium properties that are either past producers have been the subject of prior work programs and/or contain historic resources. Our geographic focus is the Western United States, where we have acquired uranium properties in the States of Colorado and Arizona.

ON BEHALF OF THE BOARD

Kevin Russell, President and Director

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

Contact Information

  • Monster Uranium Corp.
    Kevin Russell
    President
    (780) 665-8118
    (780) 425-7957 (FAX)