Titan Uranium Inc. to Acquire 100% Interest in Sheep Mountain Property
02 October 2009 - 5:21AM
Marketwired
Titan Uranium Inc. (TSX VENTURE: TUE)(FRANKFURT: T4X) ("Titan") is
pleased to announce that it has closed the previously announced
agreement (the Agreement) with Uranium One Inc. ("TSX: UUU") to
acquire the 50% interest held by Uranium One in the Sheep Mountain
property, Fremont County, Wyoming. This will result in Titan
holding a 100% interest in the property which hosts an NI 43-101
compliant Inferred Resource of 15.6 million pounds of U3O8. In
conjunction with this transaction, Titan will acquire Uranium One's
50% interest in the Hollie claims, Emery County, UT and transfer
its 50% interest in the Breccia Pipe project, AZ and the Burro
Canyon project in Colorado to Uranium One.
The terms of the agreement include:
- An initial cash payment of US$850,000 for Sheep Mountain and
for the Hollie claims;
- A payment of US$2,000,000 if the month-end spot uranium price
reported by Ux Consulting Company exceeds US$65.00 per pound within
three years of the closing date, payable within six months;
- A further payment of US$4,000,000 if the month-end spot
uranium price reported by Ux Consulting Company exceeds US$85.00
per pound within three years of the closing date, payable within
twelve months;
- Titan will assume the full amount of the reclamation bond for
the property on closing (total bond amount is US$2.1M of which
Titan has already contributed 50%);
- A credit of US$500,000 payable to Titan on closing, as payment
for the transfer of Titan's 50% interest in the Breccia Pipes
project in Arizona and in the Burro canyon project in Colorado to
Uranium One; and
- The termination of the existing Joint Venture between the two
companies.
Chris Healey, COO for Titan, P.Geo is the Qualified Person
responsible for the technical content of this release.
About Titan Uranium Inc.
Titan has gained market recognition for its ability to attract
strategic partners to participate in exploration on its properties
in Canada by virtue of its 1.6 million acre land position and its
technical expertise. The option agreement participants of Titan
include: Japan Oil, Gas and Metals National Corporation (JOGMEC),
Vale Exploration Canada Inc. (VEC), and Mega Uranium Ltd. These
optionees are expected to contribute $4.7 million in exploration
programs managed by Titan in 2009.
Titan recently completed a business combination with UPC (Titan
Uranium Inc. PR- August 4, 2009) which adds a number of highly
prospective properties, mainly in the United States, to Titan's
portfolio.
ON BEHALF OF TITAN URANIUM INC.
Brian A. Reilly, President
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this news release constitutes
forward-looking information within the meaning of applicable
securities legislation (collectively, "forward-looking
statements"). All statements in this news release that are not
statements of historical fact (including statements containing the
words "expects", "does not expect", "plans", "anticipates", "does
not anticipate", "believes", "intends", "estimates", "estimates",
"projects", "potential", "scheduled", "forecast", "budget" and
similar expressions) should be considered forward-looking
statements. All such forward-looking statements are subject to
important risk factors and uncertainties, many of which are beyond
Titan's ability to control or predict. A number of important
factors could cause actual results or events to differ materially
from those indicated or implied by such forward-looking
statements.
Titan assume's no obligation to update the information in this
communication, except as otherwise required by law. Additional
information identifying risks and uncertainties is contained in
Titan's filings with the various provincial securities commissions
which are available online at www.sedar.com. Forward-looking
statements are provided for the purpose of providing information
about the current expectations, beliefs and plans of the management
of each of Titan relating to the future. Readers are cautioned that
such statements may not be appropriate for other purposes. Readers
are also cautioned not to place undue reliance on these
forward-looking statements, that speak only as of the date
hereof.
Neither 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. No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein.
Contacts: Titan Uranium Inc. Investor Relations 306-651-2405 or
604-925-1810 306-651-5105 www.titanuranium.com
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