VANCOUVER, May 16 /CNW/ - Tigris Uranium Corp. (TSX.V: TU) (the "Company") is pleased to announce that it has reached an early buyout and royalty reduction agreement with NZ Uranium, LLC on the Crownpoint, Hosta Butte and McKinley Properties. The Company will realize considerable savings with this agreement over the original agreement. Most significantly the royalty has been reduced from a maximum 10% to a flat 3%. The Company will also have no further share or cash issuance obligations following closing. The subject properties contain a total Indicated Resource of 34.4 million pounds of U(3)O8 at an average grade of 0.0949% eU(3)O8 (Myers, 2010). More significantly, approximately 14 million of these pounds are subject to an existing NRC permit.
"Reducing the royalty from a maximum of 10% to 3% on this package of established resources greatly enhances their economic viability and paves the way for future development of the portions of the resource which have been permitted," said William M. Sheriff, Chairman. "The Company has secured an ultimate savings on production, measured in the tens of millions of dollars, by reducing the royalty rate, made possible by the short term downturn in the uranium sector. We are committed to the long term viability of the uranium industry and will continue to take advantage of short term opportunities presented by the currently distressed market."
The amending agreement provides for:
- The immediate exercise of the Company's option to earn a 100%
interest in the Crownpoint, Hosta Butte and McKinley Properties,
subject only to the reduced royalty as more particularly described
- The reduction of the exercise price from a minimum of USD$4,000,000
in cash and stock to USD$2,750,000 in cash and 2,750,000 common
shares of the Company;
- The reduction of the royalty from a sliding scale of 4% to 10% to a
flat 3%; and
- The elimination of the obligation of the Company to issue additional
shares to the Optionor should certain value targets not be met.(1)
The amending agreement is subject to several conditions precedent, including regulatory approval.
About Tigris Uranium Corp.
Tigris Uranium Corp. is a well-financed exploration company committed to acquisitions of advanced projects. Management's proven ability to target opportunity, aggressively acquire properties and create shareholder value has secured 115,000+ acres (46,400 ha) of 100% controlled private mineral rights, with an indicated resource of 34.4 MM pounds U(3)O8 (Myers, 2010) in New Mexico's Crownpoint Uranium District, a portion of which is under NRC license, in a new progressive New Mexico regulatory and political environment.
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.
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and Tigris Uranium Corp's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, Tigris Uranium Corp. assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
(1) See News Release dated May 27, 2010 for a complete description of the
terms original option agreement.
SOURCE Tigris Uranium Corp.
For further information: Tigris Uranium Corp., Janet Lee-Sheriff, President, Phone: (604) 648-4653