Radar Acquisitions Corp.

May 25, 2005 08:30 ET

Radar Signs Option To Acquire Titanium Properties

CALGARY, ALBERTA--(CCNMatthews - May 25, 2005) - Tim Bergen, Chief Financial Officer of Radar Acquisitions Corp. ("Radar") (TSX VENTURE:RAC) would like to inform its shareholders of its recent signing of a mining lease and option agreement dated May 19th, 2005 (the "Option") to acquire titanium properties (the "Property") in the Strong Creek area of Wyoming, USA from Wyomex LLC ("Wyomex").

The Property is located in the mining-friendly state of Wyoming and is comprised of 11 claims, covering approximately 245 acres of land. The Option stems from two years of negotiation between Radar and Wyomex regarding its Titanium properties. Radar's positive outlook is the result of previous studies on the ore body, including the information gained from a 1986 Master's Thesis by a student at the University of Wyoming. Although Radar's interests lie in the Titanium, there is also interest in the Iron and Vanadium potentials contained within the properties. From a visual inspection, as well as previous core samples taken from the Property, the study identified the ore body as having oxide-rich zones containing Titanium, Iron and Vanadium, among other minerals. Previous developmental measures also include a 527-foot hole drilled on the Property. The above studies and findings have not been confirmed by a National Instrument 43-101 technical report. Radar Acquisitions Corp. will schedule a drilling program early this summer to confirm historical data as well as to prepare a NI 43-101 compliant technical report. The data collected from the sampling, if positive, will allow Radar to run economic models in order to determine the viability of a future mine.

Under the Option, on the execution date Wyomex will receive US$20,000 and 110,000 common shares which are held in voluntary escrow for 16 months to be released on Radar's satisfactory completion of due diligence. Radar also agrees to a US$85,000 work commitment to be expended in the 16 month period commencing on the execution of the Option. If the due diligence is unsatisfactory the escrowed shares will be returned to Radar.

The entire option amount is US$5,250,000 ("Option Price") with Radar's first payout obligation ("Advance Minimum Royalty") being $80,000 due 28 months after the signing of the Option, US$90,000 one year after that payment and US$100,000 on each anniversary thereafter. The option is exercisable for 10 years at which time the balance of the Option is required.

The initial US$20,000 payment, the US$85,000 work commitment, the value of the 110,000 common shares of Radar, the Advance Minimum Royalties and any Production Royalties (as defined below) paid prior to the payment of the Option Price will be applied towards the Option Price.

If production commences prior to payment of the Option Price, Radar will be required to pay a Production Royalty of the greater of $100,000 per year or 4.5% of gross income derived from the sale of minerals from the Property in place of the Advance Minimum Royalty. If production has commenced and the entire Option Price has been paid, then the Production Royalty is reduced to 1.5%.

Completion of the Transaction is subject to the receipt of all necessary corporate and regulatory approvals, including the acceptance of the TSX Venture Exchange, and the completion of Radar's due diligence review.

Radar's lead project is its Buick Power Project, on October 20, 2004, Radar signed a three-way Memorandum of Understanding (MOU) with Black Hills Generation and Kiewit Mining Group Inc in order to further the development of the Buick Power Project. The terms of the MOU are that Black Hills or its Affiliate shall provide Plant O&M Services, Kiewit or its Affiliate shall provide Mine O&M Services and Radar or its Affiliate shall provide the Lignite Resource for the Project's Lignite Mine. The Buick Power Project is located 90 miles south east of Denver, Colorado, and encompasses over 22,500 acres of leases held by Radar. These leases include 15,360 acres of land leased from RME Land Corp., a subsidiary of Anadarko Petroleum Corporation (NYSE: APC). A measured resource of 216 million tons plus an indicated resource of 45 million tons for a measured plus indicated resource of over 260 million tons of coal has been reported within the leases (see the engineering report filed on http://www.sedar.com August 8, 2002 By Garry Smith, a qualified person). Radar is pleased to report that progress is being made on the Buick Power Project as scheduled.

Radar will continue to update shareholders on the progress of future corporate news, financings, and project developments. Management welcomes the opportunity to present detailed project information to shareholders or other interested parties. For further project and corporate information contact Peter Leger pleger@radar.ab.ca and for investor inquiries Gordon Beach (Broker/Investor Communications) gbeach@radar.ab.ca.

Foreign Purchase Information:

CUSIP # 7499231

IBM Security Code - 565656

Stock Symbol RAC on the TSX Venture Exchange

All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Radar's expectations are disclosed in documents filed from time to time by Radar with the TSX-Venture Exchange, the Alberta Securities Commission and the British Columbia Securities Commission.

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

Contact Information

  • Radar Acquisitions Corp.
    Peter Leger
    project and corporate information
    Radar Acquisitions Corp.
    Gordon Beach
    investor inquiries (Broker/Investor Communications)
    Radar Acquisitions Corp.
    (403) 262-3797 or Toll Free 1 (877) 262-5888
    (403) 233-2344 (FAX)