Titan Uranium Inc.
TSX VENTURE : TUE
FRANKFURT : T4X
August 26, 2009 12:13 ET
Titan Uranium Inc. to Acquire 100% Interest in Sheep Mountain Property
SASKATOON, SASKATCHEWAN--(Marketwire - Aug. 26, 2009) - Titan Uranium Inc. (TSX VENTURE:TUE)(FRANKFURT:T4X) ("Titan") is pleased to announce that it has entered into a definitive agreement (the Agreement) with Uranium One Inc. (TSX:UUU) to acquire the 50% interest held by Uranium One in the Sheep Mountain property, Fremont County, Wyoming. This will result in Titan holding a 100% interest in the property which hosts an NI 43-101 compliant Inferred Resource of 15.6 million pounds of U3O8. In conjunction with this transaction, Titan will acquire Uranium One's 50% interest in the Hollie claims, Emery County, UT and transfer its 50% interest in the Breccia Pipe project, AZ and the Burro Canyon project in Colorado to Uranium One.
The terms of the agreement include:
- An initial cash payment of US$850,000 for Sheep Mountain and for the Hollie claims;
- A payment of US$2,000,000 if the month-end spot uranium price reported by Ux Consulting Company exceeds US$65.00 per pound within three years of the closing date, payable within six months;
- A further payment of US$4,000,000 if the month-end spot uranium price reported by Ux Consulting Company exceeds US$85.00 per pound within three years of the closing date, payable within twelve months;
- Titan will assume the full amount of the reclamation bond for the property on closing (total bond amount is US$2.1M of which Titan has already contributed 50%);
- A credit of US$500,000 payable to Titan on closing, as payment for the transfer of Titan's 50% interest in the Breccia Pipes project in Arizona and in the Burro canyon project in Colorado to Uranium One; and
- The termination of the existing Joint Venture between the two companies.
Closing of the transaction is expected to take place by the end of September, 2009.
Brian Reilly, President of Titan commented, "This acquisition is a significant milestone in our growth strategy and positions the company as a potential near term uranium producer in a mining jurisdiction that has a long history of uranium production."
The Sheep Mountain deposit has an NI 43-101 compliant Inferred Resource of:
4,560,000 tons, average grade of 0.17% eU3O8, (15.6 million lbs contained U3O8).
This resource estimate was reported in a technical report on the Sheep Mountain uranium project, prepared for Uranium Power Corp. (UPC) by Scott Wilson Roscoe Postle Associates Inc. and authored by C. Stewart Wallis, P. Geo. dated October 10, 2006. Additional information including the estimation method and cut-off grade may be found in the report which was filed on UPC's SEDAR profile on October 12, 2006.
In addition to the above mineral resource estimate by Scott Wilson RPA, UPC has previously reported a historical Mineral Resource estimate for the North Gap Pit area of 6.5 million pounds contained U3O8. The North Gap Pit area was explored in detail in the 1960s and 70s by then operator Western Nuclear. By 1980 the area was being prepared for permitting an open-pit operation. The North Gap area includes two potential open pit operations, the Congo Pit and the South Pit. Historical Estimates, made in June 1980 are as follows:
Area Tons % eU3O8 lbs eU3O8
---------- ------- ----------
Congo Pit 2,135,000 0.104 4,440,000
South Pit 875,000 0.115 2,013,000
---------- ------- ----------
TOTAL 3,010,000 0.107 6,453,000
These estimates were prepared before implementation of National Instrument 43-101, recent independent verification of the data has not been performed and UPC has not completed sufficient exploration work to verify the historical estimates. UPC does not treat the historical estimates as NI 43-101 defined resources verified by a qualified person and they should not be relied on.
The Sheep Mountain deposit has a current Mine Permit issued by the Wyoming Department of Environmental Quality. Several minor amendments to this permit will be required to reopen the mine.
Chris Healey, COO for Titan, P.Geo is the Qualified Person responsible for the technical content of this release.
About Titan Uranium Inc.
Titan has gained market recognition for its ability to attract strategic partners to participate in exploration on its properties in Canada by virtue of its 1.6 million acre land position and its technical expertise. The option agreement participants of Titan include: Japan Oil, Gas and Metals National Corporation (JOGMEC), Vale Exploration Canada Inc. (VEC), and Mega Uranium Ltd. These optionees are expected to contribute $4.7 million in exploration programs managed by Titan in 2009.
Titan recently announced a business combination with UPC (Titan Uranium Inc. PR - August 4, 2009) which adds a number of highly prospective properties, mainly in the United States, to Titan's portfolio.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this news release constitutes forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond Titan and UPC's ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements.
Titan and UPC assume no obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in Titan's and UPC's respective filings with the various provincial securities commissions which are available online at www.sedar.com
. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of each of Titan and UPC relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.