TORONTO, ONTARIO--(Marketwire - July 7, 2010) -
NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES
Valencia Ventures Inc. (TSX VENTURE:VVI) ("Valencia" or the "Company") is pleased to announce that it has entered into a purchase and sale agreement with Nyah Resources Corp. ("Nyah") (TSX VENTURE:NRU) to acquire a 100% interest in the Agnew Lake property from Nyah (the "Acquisition").
The Agnew Lake property consists of two separate exploration claim blocks comprised of the Agnew Lake North Uranium property (the "Agnew Lake North Uranium Property"), which is the most advanced of the two claim blocks, and the Agnew Lake South property (the "Agnew Lake South Property"). The Agnew Lake North Uranium Property consists of seven unpatented mining claims (covering 1,032 ha, or 2,550 acres) located approximately 75 kilometres by road west of Sudbury, Ontario, in Hyman and Porter Townships. These claims encompass the past producing Agnew Lake Uranium Mine which was operated by Kerr Addison Mines Ltd. between 1977 and early 1983 producing approximately 1.9 million pounds of uranium. Three of the claims (850 hectares) are subject to a Federal license under the Nuclear Safety and Control Act. The Agnew Lake Uranium Property has substantial underground infrastructure in place, including a six compartment shaft to a depth of 1,040 metres (3,412 feet) with development on six levels. A decline from surface to the 580 metre (1,900 foot) level was also developed. During the period of operation 5 mineralized zones had been identified however only two mineralized zones were developed.
The Agnew Lake South Property consists of four unpatented mining claims (covering 692 hectares, or 1710 acres) located in Hyman Township of the Elliot Lake-Blind River uranium district, Ontario.
Although the historic resources are not compliant to NI 43-101 standards at this time, Nyah geologists believe that the historic data in addition to the work completed by Nyah Resources Corp. in 2007 indicates that the Agnew Lake Mine has the potential to host a significant uranium resource. This most recent work has shown that the uraniferous conglomerate horizons continue to be mineralized for at least 1 kilometre, and remain open along strike and at depth.
In addition, the investigation of the potential of rare earth elements (REEs) and yttrium as by-products which historically had not been recorded appear to be present in sufficient quantities to warrant further analysis. This data is from the October 26, 2007 43-101 Watts, Griffis and McOuat report, written for Nyah Resources Corp.
In consideration, Valencia will pay to Nyah total consideration equal to CAD$1,000,000 over a 12 month period consisting of CAD$500,000 upon closing, CAD$250,000 in cash or common shares, at the sole discretion of Valencia on the date that is six months from closing and CAD$250,000 in cash or shares at the sole discretion of Valencia on the date that is twelve months from closing.
The Acquisition is a Non-Arm's Length Transaction for the purposes of the TSX Venture Exchange as Nyah and Valencia have two common directors, Stan Bharti and Bernard Wilson and a common officer, Patrick Gleeson, who is the Corporate Secretary of both companies.
Peter Karelse P.Geo, who is independent of Valencia, is a Qualified Person under NI 43-101 and has reviewed the technical and scientific information in this press release.
Fred Leigh, President, C.E.O., commented: "We are excited to be adding an advanced exploration property to our portfolio of rare earths opportunities."
Closing of the Acquisition remains subject to various conditions including the receipt of all regulatory approvals, without limitation, approval of the TSX Venture Exchange.
About Valencia Ventures
Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange.
For additional information, e-mail email@example.com.
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding the impact of the acquisition on the Company and the receipt of regulatory approvals. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE 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.