Titan Uranium Inc.
TSX VENTURE : TUE
FRANKFURT : T4X
November 12, 2008 09:46 ET
Titan Uranium Signs Second Letter of Agreement With Japan Oil, Gas and Metals National Corporation
Global Industry Partner to earn 50% interest in Titan's Border Block Project
SASKATOON, SASKATCHEWAN--(Marketwire - Nov. 12, 2008) - Titan Uranium Inc. ("Titan" or the "Company") (TSX VENTURE:TUE)(FRANKFURT:T4X), a North American generative explorer, is pleased to announce the signing of a letter agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC). JOGMEC can acquire an undivided 50% working interest in Titan's Border Block Project by funding Cdn $6 million in uranium exploration programs managed by Titan. This marks the second option agreement signed by Titan and project partner JOGMEC in 2008.
Under the agreement, JOGMEC has committed to funding Cdn $1 million in exploration programs managed by Titan in the first year and may elect to fund a further Cdn $5 million over the subsequent three years of the agreement to acquire an undivided 50% ownership interest in the Border Block Project. Furthermore, JOGMEC has the option to provide an additional Cdn $6 million to obtain the exclusive marketing rights of the mineral products of the joint venture for a 10-year period from first commercial production.
The Border Block Project comprises 18 claims, located in the southwest portion of the uranium-rich Athabasca Basin, (76,354 hectares/188,675 acres) and includes the Maybelle River, Gartner Lake, King and Castle South Extension properties. In 2005 and 2007, Titan carried out airborne electromagnetic (EM) surveys coupled with a high resolution airborne magnetic survey. These surveys show the properties to be mostly underlain by metasedimentary rocks. The deep penetrating airborne EM survey detected numerous anomalies several of which are interpreted to be basement graphitic horizons. Uranium mineralization is commonly associated with graphitic basement rocks in the Athabasca Basin. More recently, Titan completed an extensive program of ground geophysical surveys to better define the airborne anomalies and to establish targets for a drill program in Fall/Winter 2008.
JOGMEC has the option to expend Cdn $15 million on the Border Block and Virgin Trend uranium exploration projects managed by Titan between 2008 and 2011. JOGMEC is a prominent Japanese corporation, funded by Japan's national and municipal governments as well as by private-sector corporations, with a global mandate to seek a stable supply of natural resources for Japan. JOGMEC reported assets of US$ 7.3 billion and ordinary revenues of +US$ 1 billion for the fiscal year ended March 31, 2007.
"We are very pleased that JOGMEC has signed an additional letter of agreement with Titan to explore on some of the Company's key properties in the world's largest uranium-producing region, the Athabasca Basin" said Phil Olson, Chairman and CEO of Titan Uranium Inc. "The second letter of agreement strengthens the existing partnership between JOGMEC and Titan and validates Titan's role as a leading generative explorer in the global uranium sector. The additional funding will provide Titan with significant dollars to explore for high-grade uranium deposits without diluting shareholder value. We greatly value JOGMEC as a major industry partner and value their exceptional geological expertise that has built the foundation of a strong partnership."
J. Allan McNutt, P. Geo., M.A.Sc., is Titan's Qualified Person (as defined by National Instrument 43-101) for uranium projects and is responsible for the technical information contained in this release.
About Titan Uranium Inc.
Titan's growth strategy is driven by advancing exploration projects to discovery in the proven Athabasca and prospective Thelon basins. Titan has gained market recognition for its ability to attract strategic partners to participate in exploration on its properties by virtue of its 1.5 million acre land position and technical expertise. In 2008, Japan Oil, Gas and Metals National Corporation (JOGMEC) signed two letters of agreement with Titan to explore the Company's Virgin Trend and Border Block projects as an element of its mandate to seek a stable supply of natural resources for Japan. In April 2008, Vale Exploration Canada Inc., a wholly-owned subsidiary of Companhia Vale do Rio Doce (VALE), the world's second largest mining company by market capitalization, signed an agreement with Titan on the Sand Hill Lake/Rook II project. Titan also has a major joint venture project underway in the Thelon Basin with Mega Uranium Ltd. Additional partnerships are at the planning stage.
Partners of Titan have the option to expend Cdn $28.5 million in exploration programs managed by Titan between 2008 and 2011. The partners can earn a portion of Titan's interest in these strategically located properties in the Athabasca and Thelon basins. Optionees of Titan properties spent Cdn $5.5 million on exploration programs managed by Titan in 2007.
Titan is well-financed and ideally positioned to emerge as a pre-eminent explorer in the uranium industry. Based in Saskatoon, Saskatchewan, Titan boasts proven senior leadership, a highly experienced technical team and a dominant land position in Canada's world-class uranium districts.
ON BEHALF OF TITAN URANIUM INC.
Brian A. Reilly, President
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Titan Uranium, 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 Titan Uranium's expectations are exploration risks detailed herein and from time to time in the filings made by Titan Uranium with securities regulators.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.