VANCOUVER, BRITISH COLUMBIA--(Marketwire -
Feb. 9, 2010) - Western Uranium Corporation (TSX VENTURE:WUC) ("the Company") announces that, further to its news release dated
November 30, 2010, it has closed the acquisition (the "Acquisition") from HB
Syndicate of 7 cateos covering approximately 14,000 hectares located in the La
Rioja Province of Argentina that demonstrate strong potential for hosting
uranium mineralization. In addition, the agreement extends to any other uranium
properties identified by the HB Syndicate within Argentina over the next two
years that, with the Company's agreement, merit acquisition.
for the Acquisition, the Company has paid to the members of the HB Syndicate an
aggregate of USD$100,000, an aggregate of 500,000 units of the Company (a unit
considering of one common share and one-half warrant, each warrant entitling
the holder to acquire one additional share of the Company at a price of $1.00
per share for a period of two years from the closing) and a 2% NSR, which with
respect to the property the Company will have the option to purchase any or all
of the NSR at a price of USD$1,000,000 per percentage interest. The
certificates representing the shares and warrants will be subject to a four
month hold expiring on June 6, 2010. Until the transfers of the cateos to the
Company are completed by the Argentina mining authority, the consideration will
be held in escrow.
The HB syndicate
has identified a number of areas in Argentina that are similar geologically to
the producing basins in the western U.S. that have been mined and have produced
hundreds of millions of pounds of uranium. These areas have not been subjected
to the intense level of exploration or mining by the private sector as in the
U.S. In addition to the geologic favorability of the area, the provincial
government of La Rioja recently rescinded negative mining regulations and the
infrastructure and access are good compared to other prospective areas in
Argentina. The Company believes this represents a sound business opportunity to
continue uranium exploration with a minimal outlay of expenditures which will
position Western Uranium well when the uranium sector revives. The Company
intends to engage certain members of the HB Syndicate to carry out exploration
on the cateos.
Corporation is a mineral exploration company. The Company has exploration
properties in Nevada, New Mexico, in the Thelon Basin, Nunavut, Spain and
Argentina. The Company has its head office in Vancouver, Canada; its executive
management team is based in Reno, Nevada.
On behalf of the Board of Western
J. Klessig, President
The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.