Utah Uranium Corp. Options Out Alberta Potash Property, Announces Private Placement Financing
Utah Uranium Corp. (the “Company”) (OTCBB: UTUC) is pleased to announce the signing of a letter of intent to option out the Ernestina Lake Potash property, located in the Province of Alberta, Canada, with Mountain Capital Inc. (“MCI”) (TSX-V: MCI). In total, the Company acquired potash permit applications covering a total of 192,000 contiguous hectares (474,400 acres) in east central Alberta, on the Saskatchewan border. To date, a total of 19 permits have been received, covering a total of 143,800 hectares (355,300 acres). The Company anticipates receipt of the outstanding applications shortly.
Terms of the agreement are as follows:
-- $50,000 Cash (on signing -- non refundable) -- $125,000 Cash and 500,000 shares on TSX Venture Exchange Approval -- $500,000 work commitment within 12 months including preparation of a NI43-101 report -- $75,000 Cash and equivalent value to $30,000 in shares prior to December 25th, 2008 -- $125,000 Cash and equivalent value to $30,000 in shares prior to April 25th, 2009 -- $125,000 Cash and equivalent value to $30,000 in shares prior to August 25th, 2009 -- Milestone 1 -- $1,000,000 (in addition to above) work commitment within 24 months of granting of Exploration Permits -- Milestone 2
After Milestone 1, Optionee will be deemed to have earned a 50% interest subject to a 3.0% NSR of which 80% of the NSR can be purchased for $2,500,000. Completion of Milestone 2 will increase Optionee interest to 60% subject to NSR.
According to an overview of work conducted by Royal American Petroleums Ltd. in 1966 filed with the Alberta Geological Survey in Mineral Assessment Report (19660009): “The geological strata and basinal effects in the Vermilion area are closely related to the potash-rich areas of Esterhazy, Saskatoon and Unity.”
A detailed study of this portion of Alberta showed the presence of a substantial quantity of carnallite and possible sylvite in the Vermillion area in the East Central Plains of Alberta. Literature made available from the Alberta Conservation Board, corroborates this potash occurrence in Alberta.
The potash minerals are found in the Prairie Evaporite section of the Middle Devonian Elk Point Basin. The carnallite and the pinkish potash mineral lie on top of a thick 400 foot section of common salt (halite). A thickness of twelve feet of carnallite was reported to be present and the pinkish and greyish mineral, in all probability sylvite, occurs through the first 80 feet of the Prairie Evaporite.
The potash minerals are of the same composition and depositional sequence and depth as the potash at Unity, Saskatchewan, the location of Canada’s first Potash Mine. A possible potash bed occurs at 2600 feet in the Prairie Evaporite which could be an extension of the Unity deposit. The lower deposits are separate but occur at 3500 feet similar to the Saskatoon deposits.
The Company also wishes to announce a private placement of up to 1.5 million units at a price of $0.30 per unit, for gross proceeds of $450,000. Each unit will consist of one restricted common share in the Company and one warrant to purchase an additional restricted common share of the Company at a price of $0.50 for a period of two years from the date of closing of the private placement. Proceeds from the placement will be used for general working capital and to advance the Company’s mineral properties.
About the company — Utah Uranium Corporation is a Moab, Utah based junior exploration and development company focused on the acquisition of highly sought after Fertilizer and Energy related opportunities in addition to cash-flow investments.
On behalf of the Board,
Peter Dickie, President
Cautionary note: This report may contain forward-looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. Unless otherwise stated, any and all resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward-looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as “reserves” unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Utah Uranium Corp. Unit B-9, 11850 South Hwy 191 Moab, UT 84532 1-866-669-9377 firstname.lastname@example.org
SOURCE: Utah Uranium Corp.