UC Resources Ltd.

UC Resources Ltd.

January 25, 2010 13:27 ET

UC Resources Ltd. Arranges Financing to Put the La Yesca Mill Back into Production

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2010) - UC Resources Ltd. (TSX VENTURE:UC) ("UC") announces that it has arranged a non-brokered private placement by the sale of 8,750,000 shares at $.08 per unit to raise $700,000 dollars. The unit will consist of one share and one half purchase warrant, with each whole warrant exercisable at $.10 cents for a period of one year. A commission of 7% cash and a one year option to purchase 7% of shares issued at $.11 cents has been granted as a finder's fee.

Jim Voisin, President & CEO of UC Resources Ltd. states, "This hard dollar placement will allow management to re-start operations at the La Yesca mill which will allow the company to move forward on its 2010 Mexican gold/silver asset growth strategy which includes both production and increased exploration."

Proceeds will be dedicated to the upgrading of the La Yesca gold and sliver tailings processing facility located in Nayarit, Mexico. These funds will facilitate the installation of a required ball mill and final construction of the already permitted tailings facility as well as changes to the process. The estimated time of the construction phase of the La Yesca mill is four months with test production being planned to begin in month three. The company intends to run the mill at a through-put rate of 220 tonnes per day with between 4-5 years of production tailings available.

In conjunction with the mill being placed into production, an exploration plan is being developed for the Xora claim which will be based on the 43-101 compliant results reported on numerous vein structures within the Xora claim group (see March 17, 2009, press release). Some highlights from that sampling program included gold consistently between .25 g/t to.8 g/t with highs of 4 g/t to7 g/t while silver showed a range of 250 g/t to 600 g/t with highs of 980 g/t to 1900 g/t. No known diamond drilling has occurred on any of the aforementioned vein structures, which are open at depth and on strike. Logistics and geophysical programs are presently being planned for the impending drill program on the Xora claim.

UC Resources is presently awaiting results from the last two drill programs in the "Ring of Fire" James Bay Lowlands area of Ontario and will release results once available.

UC Resources is an active explorer of base metals and chromite in the McFaulds Lake area ("Ring of Fire") of the James Bay Lowlands, Ontario, as well as an explorer and a near term producer of precious metals in Mexico.

On behalf of the Board of Directors,

Jim Voisin
President & CEO
UC Resources Ltd.

We seek safe harbour.

Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

Contact Information

  • UC Resources Ltd.
    Damien Lowry
    Vancouver Head Office
    Toll Free: 1-800-366-8566 (Canada & USA)