TORONTO, June 4 /CNW/ - Northwestern Mineral Ventures Inc. (TSX-V: NWT;
OTCBB: NWTMF) has entered into a Joint Venture Agreement with UraMin Inc.
(TSX: UMN; AIM: UMN) to form a new corporation that will advance a total of
eight highly prospective uranium concessions in Niger. Marek J. Kreczmer,
Northwestern's President and CEO, will lead the new company and has been
appointed Managing Director and CEO. Mr. Kreczmer will also serve as a member
of the Board of Directors.
The agreement provides that Northwestern will receive a 50% equity stake
in the new company, a cash payment of C$4,800,000 as well as a 3% net smelter
royalty on the production of uranium and any other ores and/or minerals
produced from its Irhazer and In Gall concessions, which will become two of
eight properties in the new company's uranium portfolio. UraMin will
contribute six uranium properties, which are located in the same geographic
area as Niger's two producing Areva mines, as well as US$15,000,000 in
exchange for its 50% equity stake.
"This is an exciting development for Northwestern and its shareholders.
UraMin has significant experience in building mines across Africa and we are
gaining access to their expertise as producers. Northwestern is also acquiring
a sizeable interest in six additional uranium properties in Niger," said
Mr. Kreczmer. "With the US$15,000,000 investment from UraMin, we have a solid
financial foundation combined with considerable technical resources at our
disposal. We look forward to advancing exploration activities on our expanded
uranium property portfolio in Niger, which is already one of the world's top
UraMin's CEO Ian Stalker, an international mining executive with over 30
years of mining experience in Europe, Africa and Australia, has been appointed
Executive Deputy Chairman and President of the new company, while Neil
Herbert, UraMin's Finance Director, has been named CFO. In addition, both
Mr. Stalker and Mr. Herbert have been appointed to the Board of Directors.
Northwestern will nominate one additional director as well as a non-executive
Chairman, to bring the total number of Board members to five.
"By combining our resources in Niger we not only bring together the
highly prospective license areas of both companies but we also marry
Northwestern's established exploration team in Niger with UraMin's
international mining team," said Stephen Dattels, Deputy Chairman of UraMin.
"This is a very exciting combination and we look forward to proceeding with a
major exploration program in Niger at a pace that would otherwise not have
Highly Prospective Uranium Property Portfolio
The Joint Venture Company boasts eight uranium properties - known as
Irhazer, In Gall, Kamas 1 to 4, and Dabala 3 and 4 - covering a total of
1,673,644 acres (6,773 square kilometers).
Irhazer and In Gall have returned uranium values ranging from 0.22%
U(3)O(8) to 1.0% U(3)O(8) from five of 16 surface rock samples collected from
outcrops, as reported in a press release on May 29, 2007. Producing mines and
deposits in Niger typically grade from 0.1% to 0.42% U(3)O(8), with the
highest grades being mined at greater depths.
Kamas 1 to 4 and Dabala 3 and 4 are adjacent and situated along the
proven Arlit fault, north of a successful uranium-producing mine.
Northwestern and UraMin will have first right of refusal on properties
outside of Niger that are identified by the new company.
The agreement and technical reports pertaining to Irhazer and In Gall are
available on SEDAR at www.sedar.com.
The formation of the new corporation and completion of the transactions
are subject to review and approval in the Republic of Niger, as well as the
receipt of all applicable regulatory approvals (including the approval of the
TSX Venture Exchange) and a favorable fairness opinion.
UraMin (www.uramin.com) was established in 2005 to acquire and develop
mineral properties, predominantly uranium. UraMin is focused on advancing its
100%-owned Trekkopje uranium project in Namibia to the completed Definitive
Feasibility Study ("feasibility study") stage. A trial mine is planned for the
fourth quarter of 2007 and commercial production is planned for late 2008. The
Company also has a feasibility study underway at its 90% owned Bakouma uranium
project in the Central African Republic and on its 74%-owned Ryst Kuil uranium
project in South Africa. SRK is the lead consultant for the Ryst Kuil Project.
UraMin intends to bring these near surface open pitable projects into
production, utilizing efficient mining and processing methods currently in
practice worldwide in similar deposits in a cost effective manner.
UraMin also has a number of exploration projects in both Africa (Chad,
Niger, Senegal and Mozambique) and joint venture projects in Canada (the Rea
Project within the Athabasca Basin in Alberta and the Labrador Project in
Quebec) on which it is advancing exploration programs that could provide a
pipeline of potentially economic uranium projects for the future.
Northwestern Mineral Ventures (www.northwestmineral.com) is an
international resource exploration company with an experienced management
team. The company is focused on properties in Niger and Canada with potential
uranium targets. Northwestern also has a precious and base metal property in
Mexico. Northwestern is listed on the NASD Bulletin Board under the symbol
"NWTMF" and the TSX Venture Exchange under the symbol "NWT."
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
This news release includes certain "forward looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. Without limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of the Company
are forward looking statements that involve various degrees of risk. The
following are important factors that could cause the Company's actual results
to differ materially from those expressed or implied by such forward looking
statements: changes in the worldwide price of mineral commodities, general
market conditions, risks inherent in mineral exploration, risks associated
with development, construction and mining operations, the uncertainty of
future profitability and the uncertainty of access to additional capital.
Potential quantity and grade is conceptual in nature, there has been
insufficient exploration to define a mineral resource on any of the properties
referenced in this press release and it is uncertain if further exploration
will result in any such targets being delineated as a mineral resource. The
technical information which forms the basis for the disclosure regarding the
Irhazer and In Gall properties contained herein was prepared by Graham
Greenway, an independent consultant, who is a qualified person within the
meaning of National Instrument 43-101 of the Canadian Securities
Additional information about Northwestern's Niger properties is contained
in press releases dated May 29, 2007, April 30, 2007, March 15, 2007, March 1,
2007, December 14, 2006, October 25, 2006, September 29, 2006, September 22,
2006, June 15, 2006, May 23, 2006, May 2, 2006 , March 27, 2006 and March 8,
For further information:
For further information: Marek J. Kreczmer, M.Sc., P.Eng., President and
CEO, (866) 437-9551, firstname.lastname@example.org