CALGARY,
AB, Aug. 15, 2022 /CNW/ - Uravan Minerals
Inc. (TSXV: UVN) ("Uravan") and Prime Fuels Corp
("Prime") announce they have entered into a Share Purchase
Agreement effectively dated August 9,
2022 (the "Transaction") which sets forth the terms
and conditions upon which Uravan will acquire Prime and its 100%
owned mining projects located in Lisbon Valley Mining District (the
"Lisbon Valley District") Utah,
USA.
Prime is a private company incorporated under the laws of
the State of Colorado and is
the recorded and beneficial owner of a 100% interest in certain
unpatented lode mining claims (the "Claims") situated in the
State of Utah, USA. The
Claims consist of two groups, the LS and JB mining claims,
totalling 107 claims covering approximately 2,211 acres (895 ha) in
the Lisbon Valley District, south-eastern Utah.
The Lisbon Valley District is in the Colorado Plateau Region, 30
miles south-east of Moab, Utah.
The Lisbon Valley District has historic uranium production from
1948 to 1988 of approximately 78 million pounds U3O8 (Utah
Geological Survey, OFR-188, July
1990) *. The uranium mineralization in the Lisbon Valley
District is primarily hosted by the Moss Back Member of the lower
Chinle Formation of Triassic Age. The Moss Back sandstone has the
unique distinction of hosting some of the highest-grade uranium and
vanadium mineralization in the Colorado Plateau Region.
The LS claim group is located just southeast and adjacent to the
Lisbon Mine, on the downthrown side of the Lisbon Valley anticline.
The Lisbon Mine was owned and operated by Rio Algom Mines Ltd, with
production between 1972 – 1988, producing approximately 22 million
pounds U3O8 from the Moss Back sandstone (Lisbon Valley
Uranium Project, NI43-101 Technical Report by B. Fleshman,
October 2005) *.
In a press release dated September 10,
2007, Mesa Uranium Corp. ("Mesa") while conducting a
seven-hole drill program on the area now covered by the LS claims,
reported intersecting significant uranium mineralization amounting
to 17.5 feet grading 0.11% U3O8 (including 3.5 feet grading 0.28%
U3O8) in drill hole L-15, collard about 8,000 feet southeast of the
Lisbon Mine. Mesa also reported: "All drill holes were logged by
Jet West Geophysical Services of Farmington, New Mexico to produce a log suite
of Gamma, Spontaneous Potential (SP), and Resistivity values. The
Gamma portion of the down-hole logging tool was calibrated at
uranium-industry standard pits located in Grand Junction, Colorado. In situ uranium
grades, expressed as equivalent U3O8 (eU3O8) are calculated using
the digital gamma ray values acquired by the down hole logging tool
and uranium industry standard techniques for gamma log
interpretation."
Pursuant to the terms of the Transaction, Uravan shall acquire
all the common shares of Prime from the Prime shareholders (the
"Prime Shareholders") at a deemed value of $124,000 (the "Purchase Price"). The
Purchase Price shall be satisfied by Uravan by the issuance of
800,000 common shares of Uravan (the "Uravan Shares") to the
Prime Shareholders at a deemed value of $0.155 per Uravan Share. Following the
issuance of the Uravan Shares to the Prime Shareholders, all the
Prime Shares will be owned by Uravan and Prime shall become a
wholly owned subsidiary of Uravan, by which Uravan shall be the
beneficial and recorded owner of 100% interest in the
Claims.
Uravan confirms the Transaction is entirely arm's-length and
there are no finders' fees payable. The Claims are subject to a
2.0% Net Smelter Royalty.
The closing of the Transaction is expected to take place on or
before August 31, 2022, following the
satisfaction or waiver of the conditions by Uravan and Prime set
out in Transaction. All Uravan Shares issued to the Prime
Shareholders will be subject to a statutory 4-month hold period
under applicable securities law. Pursuant to Policy 5.3 of
the TSX Venture Exchange (the "Exchange"), the Transaction
is considered a "Fundamental Acquisition" requiring Uravan to
obtain Exchange approval.
Larry Lahusen, CEO of Uravan
comments: "2021 - 2022 have been a pivotal year providing the
necessary rise in spot uranium prices in support of exploration.
Global events, such as the EU classifying uranium and nuclear power
as "clean energy "and the Ukrainian invasion has refocused the US
on domestic uranium production. The Small Modular Reactors,
deemed safe by utilities, provides a green light toward meaningful
licensing and new power plant development decisions. All these
events make it the right time to re-enter the uranium exploration
space, particularly in the Lisbon Valley District, an under
explored uranium-bearing geological domain and where I personally
have a historic background in discovery."
The scientific and technical information contained in this
news release has been reviewed and approved by Mr. Derrick Strickland, P. Geo,
(1000315), a "Qualified Person" ("QP") as defined in
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
*Please note the qualified person has not verified the
information on the adjacent properties and the information
disclosed is not necessarily indicative of mineralization on the
Property that is the subject of the technical report.
43-101 Report
Uravan will provide further detailed information with respect to
the technical data covered by the LS Claims and the Lisbon Valley
District, in a NI 43-101 report (the "Lisbon Valley Report") that
will be available on www.SEDAR.com. The Lisbon Valley Report
recommends a two-phase work program totaling US$550,000 in expenditures on the Claims.
Uravan has sufficient cash on hand to complete phase one of the
recommended work program over the next 12 months.
Further Information
The shares of Uravan are currently being halted from trading,
and the trading of shares of Uravan is expected to remain halted
pending approval of the Transaction by the Exchange
Cautionary Statements
This press release may contain forward looking statements
including those describing Uravan's plans and the expectations of
management that a stated result or condition will occur. Any
statement addressing future events or conditions necessarily
involves inherent risk and uncertainty, including Uravan's work
plans and the timing thereof. Actual results can differ materially
from those anticipated by management at the time of writing due to
many factors, much of which are beyond the control of Uravan and
its management. Readers are cautioned that the foregoing list
of risk factors should not be construed as exhaustive. These
statements speak only as of the date of this release or as of the
date specified in the documents accompanying this release. The
Corporation undertakes no obligation to publicly update or revise
any forward-looking statements except as expressly required by
applicable securities laws.
Neither the TSX Venture Exchange, Inc. nor its Regulation
Services Provider (as that term is defined in the polices of the
TSX Venture Exchange) has in any way passed upon the merits of the
Transaction and associated transactions and neither of the
foregoing entities has in any way approved or disapproved of the
contents of this press release and accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Uravan Minerals Inc.
