VANCOUVER, July 8, 2014 /CNW/ - Uracan Resources Ltd. (TSX.V:URC)
("Uracan" or the "Company") is pleased to announce it has signed a
binding Letter of Intent ("the LOI") with Forum Uranium Corp.
(TSX.V:FDC) ("Forum"), whereby Uracan can earn up to a 70% interest in
Forum's Clearwater Project in northern Saskatchewan. Forum is the 100%
owner of the Clearwater Project.
The Clearwater Project covers a total of 9,912 hectares adjacent to the
south-western edge of the prolific Athabasca Basin. The property
adjoins Fission Uranium's Patterson Lake South claims on the south-west
The Clearwater Project is underlain by a mix of pelitic to psammitic
metasediments that overlie older Archean gneisses. Graphitic horizons
are typically present at the contact between the two and are a target
for drilling, especially in areas where there are cross-cutting
structures. Several SSW trending electromagnetic (EM) conductors cross
from Fission's claim group onto the Clearwater Project.
To date, Forum has carried out exploration work consisting of
prospecting, soil and lake radon surveys, lake sediment sampling,
airborne EM, magnetic and radiometric surveys, and ground gravity and
EM surveys. An initial nine hole, 2,310 metre drill program was
completed by Forum in April 2014. This drilling has shown that a
number of targets are altered and reactivated graphite bearing
structures with elevated boron and nickel geochemistry. Uracan and
Forum believe that the Clearwater Project has the potential to host
high grade basement hosted uranium mineralization similar to that seen
at Fission Uranium's Patterson Lake South property. Ample exploration
potential remains to be tested throughout the property, with numerous
geophysical targets remaining to be drill tested.
In order for Uracan to earn a 51% interest in the property it must incur
a total of $3.0 million in exploration expenditures over 3 years as
Issue a total of 300,000 shares and 150,000 warrants of Uracan to Forum
on signing a definitive agreement,
Commit exploration expenditures of $ 0.5 million in year one (firm
Complete exploration expenditures of $1.0 million in year two, at which
point Uracan will have earned a 25% interest,
Complete exploration expenditures of $1.5 million in year three to earn
a 51% interest.
Uracan can elect to earn an additional 19% interest in the Clearwater
Project (total 70% interest) by making an additional $3 million in
exploration expenditures within a two year period following the date it
earns its 51% interest. Uracan will also grant Forum a 2% NSR Royalty
on the property, with Uracan having the option to purchase 1% of the
NSR for $1.0 million.
Uracan will fund all exploration work until the earn-in option has been
completed, after which further work will be funded by the Joint Venture
partners. Forum will be the Project operator until Uracan earns its 51%
interest, after which Uracan may elect to become the operator. The LOI
is subject to TSX approval and a due diligence period to be waived by
Uracan prior to July 31, 2014.
Technical information in this news release has been reviewed and
approved by Marc Simpson, P.Geo., Uracan's Qualified Person as defined
by National Instrument 43-101 ("N.I. 43-101") standards.
Uracan Resources Ltd. (TSX.V:URC, OTC:URCFF) is a Canadian-based
exploration company focused on exploring for uranium deposits in
Saskatchewan and Quebec, Canada. Since 2006, Uracan has discovered a
N.I. 43-101 Indicated Mineral Resource estimate of 7 million lbs U3O8
(21.5 million tonnes at a grade of 140 ppm U3O8 using a 100 ppm cut-off
grade) and a N.I. 43-101 Inferred Mineral Resource estimate of 37
million lbs U3O8 (140.6 million tonnes at a grade of 120 ppm U3O8 using
a 100 ppm cut-off grade) on its 100%-owned exploration properties in
Quebec. Uracan continues to review additional opportunities worldwide
to capitalize on management's exploration and financing capabilities.
In early 2013, Uracan signed an agreement with UEX Corporation, whereby
Uracan acquired the option to earn from UEX a 60% participating
interest in the Black Lake Property along the northern margin of the
Athabasca Basin. UEX currently holds an 89.99% interest in the Black
Lake Project with AREVA Resources Canada Inc. ("AREVA") holding the
remaining 10.01% interest.
Forum Uranium Corp. is a Canadian-based energy company with a focus on
the acquisition, exploration and development of Canadian uranium
projects. Forum has assembled a highly experienced team of exploration
professionals with a track record of mine discoveries for
unconformity-style uranium deposits in Canada. The Company has a
strategy to discover near surface uranium deposits in the Athabasca
Basin, Saskatchewan and the Thelon Basin, Nunavut by exploring on its
100% owned properties and through strategic partnerships and joint
ON BEHALF OF URACAN RESOURCES LTD.
President and CEO
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
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.
The foregoing information may contain forward-looking information
relating to the future performance of the Company. Forward looking
information is subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those anticipated in our forward looking
statements. Such risks and other factors include, among others, the
actual results of exploration activities, changes in world commodity
markets or equity markets, the risks of the mining industry including,
without limitation, those associated with the environment, delays in
obtaining governmental approvals, permits or financing or in the
completion of development or construction activities, title disputes,
change in government and changes to regulations affecting the mining
industry, and other risks and uncertainties detailed from time to time
in the Company's filings with the Canadian securities administrators
(available at www.SEDAR.com ). Forward-looking statements are made based on various assumptions and
on management's beliefs, estimates and opinions on the date the
statements are made. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in
the forward-looking information contained herein. The Company
undertakes no obligation to update forward-looking statements if these
assumptions, beliefs, estimates and opinions or other circumstances
should change, except as required by applicable law.
SOURCE: Uracan Resources Ltd.
For further information:
President and CEO
Uracan Resources Ltd.
Uracan Corporate Development