TORONTO, Dec. 13 /CNW/ - NWT Uranium Corp. (TSX-V: NWT; OTCBB: NWURF) is
pleased to provide its shareholders with additional details regarding its
previously announced letter agreement with Nu-Mex Uranium Corp. (OTCBB: NUMX).
As described in a press release issued on November 19, 2007, NWT Uranium,
with uranium properties in northern Quebec, and Nu-Mex with uranium properties
in New Mexico, have signed a letter agreement pursuant to which Nu-Mex has
agreed to acquire the issued and outstanding shares of NWT.
"We believe that this transaction will be of great benefit to NWT Uranium
and its shareholders," said Marek J. Kreczmer, President and CEO of NWT
Uranium. "Nu-Mex has the ability to earn a majority interest in two highly
prospective uranium properties and it was these potential assets that drew us
to the combination.
Nose Rock and Dalton Pass
Nu-Mex currently has the option to acquire a 65% interest in each of two
highly prospective uranium properties, called Nose Rock and Dalton Pass, in
New Mexico from Strathmore Minerals Corp.
Significant work has been done by previous operators on both properties.
No qualified person has done sufficient recent work to classify the historical
estimates under National Instrument ("NI") 43-101.
Located within New Mexico's Grants Mineral Belt, Nose Rock covers 5,000
acres (2,023 hectares). In February, 1977, a feasibility study was completed
based on more than 470 holes drilled by Phillips (now Conoco-Phillips), which
owned and explored the property in the late 1970s and early 1980s. The study
was produced by Morrison Knutson, renowned for its work on the Alaska
Pipeline, Hoover Dam and Oakland Bay Bridge. There is also a partially
developed shaft on the property, which will aid in exploration and development
Also located in New Mexico, the Dalton Pass property covers a total area
of 640 acres. A previous operator, Pathfinder Mining Company (a subsidiary of
nuclear giant Areva), drilled over 130 holes.
NWT Uranium's properties, which will be held by the combined company,
include North Rae and Daniel Lake, exploration-stage properties in Quebec
where the original results suggest a large potential resource. NWT's Picachos
property in Mexico is a highly prospective silver-gold project where
exploration drilling is ongoing. NWT also holds nearly 32,000,000 shares in
Niger Uranium Limited (www.niger-uranium.com) listed on AIM Exchange in
London, a company that holds several properties in the African republic of
A powerful new uranium player
According to the terms of the letter agreement, Nu-Mex will acquire
NWT Uranium on a three-for-one basis - that is, three shares of NWT will be
exchanged for one share of Nu-Mex. As part of the transaction, Nu-Mex will
arrange a financing of between $10 million and $25 million. The two companies
must enter a definitive agreement by December 20, 2007, and Nu-Mex must
deliver a NI 43-101 compliant technical report for its Nose Rock property. In
addition, it is a condition that Nu-Mex shares will be listed on a Canadian
The definitive agreement is subject to approval by NWT Uranium
shareholders, the Ontario Court of Superior Justice and the TSX Venture
Exchange, and requires a favorable fairness opinion. If these approvals are
received, the combined company will have a cash position of between
$24 million and $40 million, without giving effect to expenditures to be made,
which includes NWT's current $14 million cash position and the $10 million to
$25 million financing, which is being raised as part of the transaction.
Nu-Mex currently has approximately 33 million shares outstanding.
NWT Uranium has approximately 108 million shares outstanding. According to the
valuation of three NWT Uranium shares to one Nu-Mex share, NWT Uranium's
shares will consolidate to approximately 36 million shares. This will give the
combined company a total of approximately 70 million shares, without giving
effect to the shares to be issued as part of the financing.
Mr. Kreczmer will lead the combined company, helping to ensure that NWT
Uranium's shareholders are well served by the acquisition.
Nu-Mex executives bring extensive complementary experience in uranium
exploration, extraction and marketing. Richard Cherry, a Nu-Mex director, is a
veteran executive of the nuclear industry. He has worked for leading companies
in the areas of uranium mining, production, conversion, marketing and power
generation for over 34 years. Ganpat Mani, also a Nu-Mex director, is an
experienced marketing executive with strong skills in negotiating long-term
multi-million-dollar contracts with major private and state-owned
William D. Thomas, currently the Chief Financial Officer (CFO) of NWT
Uranium, will become CFO of the combined company. Mr. Thomas is a chartered
accountant with over 30 years of financial and management experience in
international oil & gas as well as mining ventures, including assignments in
China, the UK, Canada and the United States.
ABOUT NWT URANIUM:
NWT Uranium Corp. (www.nwturanium.com) is an international resource
exploration company with an experienced, highly technical management team.
Since its inception, NWT has concentrated on the acquisition of properties
with potential uranium targets. NWT Uranium is listed on the NASD Bulletin
Board under the symbol "NWURF" and the TSX Venture Exchange under the symbol
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 the North Rae Uranium
Project and it is uncertain if further exploration will result in the target
being delineated as a mineral resource.
For further information:
For further information: Marek J. Kreczmer, M.Sc., P.Eng., President and
CEO, NWT Uranium Corp., (866) 437-9551, firstname.lastname@example.org