Western Uranium Corporation

Western Uranium Corporation

February 09, 2010 08:30 ET

Western Uranium Corporation Closes Acquisition of Argentina Uranium Project

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.

In consideration 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as in the U.S. In addition to the geologic favorability of the area, the provincial government of La Rioja recently rescinded negative mining regulations and the infrastructure and access are good compared to other prospective areas in Argentina.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.

About the Company

Western Uranium 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 Uranium Corporation

Pamela J. Klessig, President & CEO

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.

Contact Information