Atomic signs letter of intent to acquire Tanzanian property package

    TSX-V: ATL
    FRG: MJ7

    VANCOUVER, Oct. 3 /CNW Telbec/ - Atomic Minerals Ltd. (TSX-V: ATL)
("Atomic" or the "Company") is pleased to announce that it has signed an
amended letter of intent (the "Amended LOI") with Geo Can Resources Company
Ltd. ("Geo Can") to almost double the size of the land package in the United
Republic of Tanzania to be subject to an option agreement (the "Option"),
which the Company originally announced by news release dated July 25, 2007.
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 1.45 million
square acres (the "Property") divided into 10 separate licenses (the
"Licenses"). The two companies have agreed to negotiate the Option based on
the Amended LOI by November 15, 2007 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.
    The additional property which was added to those included in the original
package are also 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 and Western Metals (both in Tanzania). Located just
60 km from Atomics property PL4514 is Paladin's, Kayelekera Project. This
project has a current resource of over 25,000,000 pounds of U3O8, and due to
go into production in late 2008.

    See Map

    In addition to the non-refundable deposit of US$65,000 which the Company
already paid Geo Can on July 25th, Atomic paid Geo Can US$300,000 on execution
of the Amended LOI as well as reimbursing Geo Can for land registration fees
of US$42,000. 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$300,000
          and 800,000 common shares;
       b) On the first anniversary of Closing, US$850,000 and
          850,000 common shares;
       c) On the second anniversary of Closing, US$1,050,000 and
          1,050,000 common shares;
       d) On the third anniversary of Closing, US$1,250,000 and
          1,250,000 common shares; and
       e) On the fourth anniversary of Closing, US$1,500,000 and
          1,500,000 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 July 25th news release. 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 square 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
#2 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$1 per acre;
       b) On or before the second anniversary of Closing: US$1.50 per acre;
       c) On or before the third anniversary of Closing: US$2.00 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 square 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 below above will be reduced on a pro rata basis per acre of land

    About Atomic

    Atomic Minerals has filed a Notice of Intent (see our news release dated
September 25, 2007) to begin drilling on portions of the 932 claims it holds
on the Dolores Anticline of southwestern Colorado. It has additionally secured
another 1585 claims of the Anticline under a LOI (see our news release dated
June 11, 2007). The total land package in Colorado will include over 2500
claims in the Dolores Anticline and 3 properties totalling 362 claims in Grand
County, Colorado. The Dolores Anticline remains as one of the last salt
anticlines of the Uravan Minerals Belt and Paradox Basin to be explored for

    "Warren McIntyre"

    Warren McIntyre
    President and Chief Executive Officer
    Atomic Minerals Ltd.

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

For further information:

For further information: on Atomic, please contact Warren McIntyre, the
Company's Chief Executive Officer at (604) 639-2866; Renmark Financial
Communications Inc.: Christine Stewart:;
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