Crosshair Energy Corporation (TSX:CXX)(NYSE MKT:CXZ)(NYSE Amex:CXZ)
("Crosshair" or the "Company") is pleased to announce that it has
entered into a Letter of Intent ("LOI") with Wealth Minerals Ltd.
(TSX VENTURE:WML) to acquire all of Wealth Minerals' prospective
uranium properties in Argentina; a land package that totals more
than 2,600 square miles (685,000 hectares).
The concession areas included in the LOI are located in Salta,
Catamarca and Chubut provinces, and will be 100 percent owned by
Crosshair on the closing of the transaction. Properties included in
the LOI include the San Jorge Basin Properties, Amblayo and
Diamante Los Patos. The San Jorge Basin concession area includes
five individual properties (including Bororo Nuevo) on which some
preliminary exploration work has been completed.
"The mineral resource potential of this land package represents
an incredible opportunity for us," said Mark Ludwig, Crosshair
President and Chief Executive Officer. "The continuing volatility
in the junior resource sector demands that we broaden our field of
view and seek opportunities that can enhance shareholder value
wherever we can find them. These Argentinian properties represent
just such an opportunity and I'm very excited about the exploration
potential they represent."
The Bororo Nuevo property covers an area of 35,500 hectares (137
square miles) within the historically productive San Jorge Basin
and is the most advanced of the uranium properties being acquired.
To date, nine zones of mineralization have been discovered within
an area that measures 12 kilometres by 4 kilometres, with less than
12 percent of the property having been mapped and prospected. Other
exploration companies currently active in the basin include U3O8
Corp. and UrAmerica Ltd.
The San Jorge Basin is host to two past-producing deposits: Los
Adobes and Cerro Condor. The unmined Cerro Solo deposit, currently
owned by the National Commission of Atomic Energy (CNEA) and not
one of the properties being acquired by Crosshair, is located 15 km
south of Bororo Nuevo and is reported to contain a historical
resource estimate of 15.4 million pounds of U3O8 (CNEA June 2009).
This historical resource estimate is not compliant with currently
accepted resource classifications as set forth by the Canadian
Institute of Mining and Metallurgy. A Qualified Person has not
completed sufficient work to classify these historic mineral
resources as current mineral resources or mineral reserves as
defined by NI 43-101, and Crosshair is not treating the historic
resources as current. Crosshair has not verified the information
and the mineralization is not indicative of mineralization that
might occur on the properties to be acquired by Crosshair.
The Amblayo property totals 14,998 hectares (58 square miles)
and is located in the core of Argentina's Tonco uranium district.
The property completely surrounds the past-producing Don Otto mine,
which operated intermittently from 1963 to 1981. The Don Otto mine
itself is not included in the concessions being acquired from
Wealth Minerals.
The Diamante Los Patos property represents the discovery of a
large, new area of uranium mineralization located on the boundary
between the provinces of Salta and Catamarca in northwestern
Argentina. Exploration on the 13,300 hectare (51 square mile)
property has identified seven large mineralized zones over a 20
kilometre by 30 kilometre area.
The consideration for the acquisition of the properties is
payments to Wealth Minerals of CDN$1.0 million in cash and
issuances to Wealth Minerals of one million Crosshair common
shares. The cash payments and share issuances will be done over a
two year period. In addition, Wealth Minerals retains a 1%
yellowcake royalty on all uranium production and a 1% NSR royalty
on all other minerals.
Completion of the transaction is subject to a number of
conditions, including Toronto Stock Exchange and NYSE MKT
acceptance and the negotiation and execution of a definitive
agreement. There can be no assurance that the transaction will be
completed as proposed or at all.
Crosshair's financial advisor for this transaction is Axemen
Resource Capital.
About Argentina
Argentina has some of the potentially richest mineral resources
in South America. Since the development of investor friendly mining
laws in 1993, Argentine mining exports have grown from US$70
million in the early '70s to over US$4.5 billion in 2010. The
country represents a noteworthy opportunity for mineral exploration
companies, as the vast majority of Argentina remains geologically
unexplored.
Known primarily for precious metals and zinc mining, Argentina
has also been active in nuclear research and uranium mining for
decades. The country's Atomic Energy Commission (Comision Nacional
de Energia Atomica, CNEA) was set up in 1950 to oversee nuclear
R&D, including construction of several research reactors.
Today, two nuclear reactors generate nearly ten percent of the
country's electricity and a third reactor is expected to begin
operating in mid- 2013. Argentina's CAREM small modular reactor
design is under consideration for desalination in Saudi Arabia.
(Source: World Nuclear Association).
About Crosshair
Crosshair is a prominent player in the exploration and
development of uranium and vanadium projects in the US and Canada.
Its Bootheel and Juniper Ridge projects have established resources
and are located in uranium mining friendly Wyoming. Bootheel has
the potential to be mined using in-situ recovery methods while
Juniper Ridge appears to be suitable for an open-pit heap leach
operation. The CMB Uranium/Vanadium Project is located in Labrador,
Canada and has four currently defined resources - C Zone, Area 1,
Armstrong and Two Time Zone. The Crosshair team is composed of
knowledgeable and experienced professionals with global experience
in exploration, mining and corporate finance that are committed to
operating in an environmentally responsible manner.
Mark Ludwig, P.E., President and CEO of Crosshair and a
Qualified Person as defined by National Instrument 43-101, has
reviewed and approved the technical information contained in this
news release.
ON BEHALF OF THE CROSSHAIR BOARD
Mark J. Morabito, EXECUTIVE CHAIRMAN
Cautionary Note Regarding Forward-Looking Information
Information set forth in this news release may involve
forward-looking statements under applicable securities laws.
Forward-looking statements are statements that relate to future,
not past, events. In this context, forward-looking statements often
address expected future business and financial performance, and
often contain words such as "anticipate", "believe", "plan",
"estimate", "expect", and "intend", statements that an action or
event "may", "might", "could", "should", or "will" be taken or
occur, or other similar expressions. Forward-looking statements or
information relate to, among other things the terms and completion
of the transaction, the mineral resource potential of the
properties and the exploration potential of the Company's
properties. By their nature, forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements, or other
future events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the
following risks: the risks associated with outstanding litigation,
if any; risks associated with project development; the need for
additional financing; operational risks associated with mining and
mineral processing; fluctuations in uranium and other commodity
prices; title matters; environmental liability claims and
insurance; reliance on key personnel; the potential for conflicts
of interest among certain officers, directors or promoters with
certain other projects; the absence of dividends; competition;
dilution; the volatility of our common share price and volume; tax
consequences to U.S. shareholders and other risks and
uncertainties, including those described in the Risk Factors
section in the Company's Annual Report on Form 20-F for the
financial year ended April 30, 2012 filed with the Canadian
Securities Administrators and available at www.sedar.com.
Forward-looking statements are made based on management's beliefs,
estimates and opinions on the date that statements are made and the
Company undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or other
circumstances should change, except as required by law. Investors
are cautioned against attributing undue certainty to
forward-looking statements.
Contacts: Crosshair Energy Corporation Mark J. Morabito
604-681-8030 604-681-8039 (FAX)info@cxxcorp.com
www.crosshairexploration.com Crosshair Energy Corporation Bevo
Beaven 720-932-8300
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