SOURCE: USA Uranium Corp

USA Uranium Corp

December 14, 2009 07:01 ET

USA Uranium Acquires Pasadena/Occidental Mine and Consummates Comstock Royalty LLC Financing

LAS VEGAS, NV--(Marketwire - December 14, 2009) - USA Uranium Corp. (PINKSHEETS: USAU) ( President Karl Harz is pleased to announce that, "We have now completed the acquisition of our second former producing mine located in Southern California, the Pasadena/Occidental Mine. Utilizing our policy of 'gold is where you find it,' management had identified several strategic targets for the Company early in the year."

Mr. Harz further stated, "With the completion of this acquisition USA Uranium has successfully achieved the second of the primary properties the Company had targeted. The fact that this property has been continuously owned by the Vendors since the 1930s and that for the first time since then, they have reposed their trust in USA Uranium to explore and develop this former prolific producer, is a testament to the vision and professionalism of our acquisition team. We are very confident that additional examination will verify our opinion that this Property will significantly expand shareholder value."

The Pasadena/Occidental Consolidated mine is a conglomerate of nine patented mining claims and three unpatented mining claims on approximately 185 acres in the Cargo Muchacho Mining District of Imperial County, California. The district in which the Pasadena/Occidental mine is located has been identified as a highly mineralized area in the Cargo Muchacho Mountain range in south east Imperial County and is well known for its production of gold. This mine has not been mined for its gold reserves since the 1930s even though core sampling test have shown high grade levels of ore. The gold bearing veins of this district have considerable depth and have been identified in the Pasadena and Occidental mines from previous operations and core sampling.

Additionally, CEO Ken Berscht is pleased to announce that the Company has completed a Capital & Development Agreement with Comstock Royalty LLC, a private Nevada company. USAU will now receive the first tranche of financing consisting of $200,000 for general working capital purposes. USA Uranium is excited to be the first client to meet the stringent due diligence requirements imposed by Comstock Royalty before consummating a transaction. Comstock Royalty LLC is a precious metals royalty and equity financing company. USA Uranium has agreed to provide Comstock Royalty LLC with both an equity and a royalty interest in exchange for the Capital & Development Agreement.

Comstock Royalty LLC believes that there is currently a unique opportunity in financing early stage gold and silver exploration and production projects like USA Uranium, through the acquisition of royalty and equity interests without incurring many of the costs and risks associated with individual mine operations. Comstock Royalty LLC together with its members and joint venture partners acquires interests in precious metals royalties as well as equity interests in potential producers while providing the exploration Company with the funds necessary to continue to acquire and develop their properties. Comstock Royalty's primary investment interest will be focused in Nevada and California with special attention to famous historic proven past gold and silver producers.

Management of Comstock Royalty stated that they, "Plan to build a portfolio of royalty projects which will have the ability to produce future revenues. The company plans to generate high-margin cash flow using a long term low exposure model of diversified NSR Royalties and equity interests rather than incur the capital costs of developing individual properties. Comstock Royalty believes in the positive outlook of higher gold prices and believes that a portfolio of royalty and equity interests will provide growth for our members and participants in this powerful gold bull market."

By becoming a member in Comstock Royalty, the member acquires both an equity interest and a percentage of the metal produced from a given public Company's property in exchange for a front end payment, without assuming any responsibility for the actual mining operation. Comstock Royalty principals and advisors, within the company sphere, bring over 75 years of senior experience & management, with expertise in the fields of mining geology, engineering, mining finance and gold trading.

John Perez, Director of Communications said: "USA Uranium's growth-focused acquisition and seasoned exploration model coupled with the partnership with Comstock Royalty is an ideal arrangement which will significantly increase shareholder value by providing considerable leverage while allowing USAU to mitigate some of the downside risks faced by traditional mining companies. Comstock Royalty opens up new prospects of the 'gold is where you find it' model, and we look forward to working with Comstock Royalty and utilizing the royalty model as we progress into the new era of this gold bull market. We are working with the $1350.00 per oz gold target given Goldman-Sachs, which clearly places USA Uranium and Comstock Royalty in excellent position to grasp a solid position in the gold-backed real estate and exploration and royalty sector."

Contact Information

  • Contact:
    John Perez
    USA Uranium Corp.
    Director of Communications
    949-280-4323 office
    888-845-4869 fax