Trading Symbol TSX-V: WCU
VANCOUVER, April 4, 2012 /CNW/ - WestCan Uranium Corp. (the "Company") ("WestCan") ("WCU") is pleased to announce an agreement has been reached with a consortium of arm's length vendors, whereby the Company has purchased 44 claims representing 2,596 hectares in the Baie-Comeau area of the Province of Quebec, known as the "Mathieu Property".
The Mathieu Property
The property is located approximately 125 km northwest of the deep sea port of Baie-Comeau, on the Quebec North Shore. The access to the property is excellent via the main lumber haul road which originates in Baie-Comeau and Labrieville located along the St-Lawrence River. It is adjacent to the Sun Graphite Property of Galaxy Capital and borders the Julie South-East graphite section of the St-Georges Platinum Julie property.
The area was originally explored by Otokumpu Mines Inc. in 1998 exploring for base metal mineralization. An advanced airborne geophysical program consisting of 2,600 line km in the region was undertaken. The program located multiple electro-magnetic (EM) anomalies in the area, outside or coinciding with known magnetic anomalies. In a 15 km long trend, there were multiple target anomalies and off-set structures, the longest of which was three kilometres in length. Only half of the major conductors were visited at the time.
Recent ground exploration conducted between 2008 and 2011 by St-Georges Platinum identified 24 graphite outcrops on the Julie South-East property located 7 km west of the Mathieu Property along the western border of Galaxy's Sun Graphite Property.
In late 1990, Otokumpu abandoned its exploration efforts when it was concluded that all anomalies explored were related to graphite mineralization and that the base metal sulphides which were then of interest, were further to the northeast, on the present day St-Georges Platinum's Julie Nickel-Copper Property.
Terms of the acquisition agreement
Pursuant to the terms of the agreement, WestCan will pay $35,000 to the vendors, with 50% due within 45 days of regulatory approval of the agreement, and the balance upon successful completion of a financing. As well, 1,500,000 common shares are to be issued to the vendors, within 45 days of regulatory approval of this agreement. The property is subject to a 2.5% NSR agreement the terms of which are to be agreed upon by all parties, within 60 days of the completion of a financing. If the Company establishes a resource equal to or greater than 5 million tonnes of Graphite Carbon in any NI 43-101 category of resources on the property, or if any subsequent buyer does, the Company will issue an additional 5 million common shares of the Company or its equivalent to the vendors. The Company must also complete a minimum of $500,000 in exploration within 24 months of the approval of this agreement. Finder's fees of $11,000 are payable, subject to regulatory approval.
On behalf of the Board of Directors
President and CEO
WestCan Uranium Corp.
Statements about the Company's future expectations and all other statements in this press release other than historical facts are "forward looking statements". The Company intends that such forward-looking statements be subject to the safe harbours created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from the expected results.
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.
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