Atomic signs final letter of intent to acquire over 940,000 acre, Tanzanian Property package

    TSX-V: ATL
    FRG: MJ7

    VANCOUVER, Jan. 28 /CNW Telbec/ - Atomic Minerals Ltd. (ATL: TSX-V) is
pleased to announce that, further to its news release dated October 3, 2007,
it has signed a second amended letter of intent (the "Amended LOI") with Geo
Can Resources Company Ltd. ("Geo Can") on its land package in the United
Republic of Tanzania to be subject to an option agreement (the "Option"). The
Amended LOI reflects a revised set of licenses to be acquired from Geo Can.
The Amended LOI will permit Atomic to acquire under the Option up to a 90%
interest in a land package now totalling approximately to over 940,000 acres
(the "Property") divided into 10 separate licenses (the "Licenses"). The
purchase price has also been revised to reflect the reduced size of the land
package. The two companies have agreed to negotiate the Option based on the
Amended LOI by no later than March 15, 2008 subject to the results of Atomic's
due diligence on the Property (including the preparation of a title opinion
and a Technical Report pursuant to National Instrument 43-101), and TSX
Venture Exchange ("TSX-V") approval.
    Several of the Licenses are located in southwestern Tanzania and are
considered to be part of the Malawi Extension based on the location of the
Property relative to blocks earmarked as potentially favourable for uranium
enrichment. Other mining companies exploring in the area include Paladin
Resources (Malawi), Universal Exploration, Mantra Resources and Western Metals
(all in Tanzania). Paladin's Kayelekera Project is located just 60 km from
Atomic's License PLR 4514.

    See Map

    In addition to non-refundable deposits totalling US$365,000 which the
Company already paid Geo Can, Atomic paid Geo Can US$125,000 on execution of
the Amended LOI. The Option will still be for a term of four years and will
include the following terms, all subject to TSX-V approval:

    1) Atomic will make cash payments and issue common shares to Geo Can as

       a) On closing of the Option Agreement (the "Closing"), US$160,000 and
          680,000 common shares;
       b) On the first anniversary of Closing, US$610,000 and 610,000 common
       c) On the second anniversary of Closing, US$750,000 and 750,000 common
       d) On the third anniversary of Closing, US$885,000 and 885,000 common
          shares; and
       e) On the fourth anniversary of Closing, US$1,020,000 and 1,020,000
          common shares.

    Atomic may still elect to pay up to 75% of the value of the Atomic common
shares to be issued to Geo Can in cash on the same terms as were announced in
our original news release of July 25th. Atomic may also elect to exercise its
option to acquire 90% of any one or more Licenses within 90 days of any
anniversary of Closing. If Atomic so elects, it will pay the pro rata portion
(based on the number of acres of the chosen Licenses) of all remaining cash
and common share payments, subject to the following deductions depending upon
the anniversary of Closing on which the election is made:

    On or Before the First Anniversary of Closing:          50% deduction
    On or Before the Second Anniversary of Closing:         30% deduction
    On or Before the Third Anniversary of Closing:          10% deduction

    The cash and share payments as well as the exploration requirements (see
#3 below) on the remaining unexercised Licenses will be reduced pro rata to
account for the Licenses on which Atomic exercised the option.

    2) Atomic may elect to purchase the remaining 10% interest of any
       Licenses at the following times and for the amounts per acre of land
       in such License set out below:

       a) On or before the first anniversary of Closing:    US$0.50 per acre;
       b) On or before the second anniversary of Closing:   US$1.00 per acre;
       c) On or before the third anniversary of Closing:    US$1.80 per acre;
       d) On or before the fourth anniversary of Closing:   US$2.50 per acre.

    3) Atomic must incur yearly minimum exploration expenditures on the
       Property as follows:

       a) By the first anniversary of Closing,              US$350,000;
       b) By the second anniversary of Closing,             US$400,000;
       c) By the third anniversary of Closing,              US$600,000; and
       d) By the fourth anniversary of Closing,             US$750,000.

    The Property will also be subject to a 2% NSR royalty, which Atomic may
buy out at any time for US$5 million. In any year following Closing, Atomic
may, on its election, surrender its interest in any one or more Licenses
provided that the number of square acres of the Licenses surrendered in such
year may not exceed 20% of the total acreage of the Property. Upon surrender
of any License, all rights thereto will immediately revert to Geo Can, and the
remaining annual payments of cash and common shares set out under #1 above
will be reduced on a pro rata basis per acre of land surrendered.

    About Atomic Minerals


    Atomic Minerals Ltd. also holds leases over a total of 932 mining claims
located in both Dolores and San Miguel counties in southwestern Colorado,
approximately 30 miles from Denison Mine Corp's White Mesa Mill. The Company
also holds a letter of intent to option a 90% interest in a further 1585
mining claims in Dolores County. Atomic holds leases over an additional 272
mining claims located in the northern part of Colorado in Grand County.

    "Warren McIntyre"

    Warren McIntyre
    President and Chief Executive Officer
    Atomic Minerals Ltd.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.

For further information:

For further information: Renmark Financial Communications Inc.: Jason
Roy:; Victoria Stepanova:, (514) 939-3989, Fax: (514) 939-3717,

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890