Universal Uranium Ltd. is pleased to announce that it has closed on the agreement with Crosshair Exploration (“Crosshair”) to acquire all of Universal’s 60% interest in its Central Mineral Belt (CMB), Labrador, uranium project, consisting of approximately 4,737 claims and including the Two Time uranium deposit, which sits outside the Labrador Inuit Land area.
The Two Time Zone is the most advanced prospect within Universal’s 1,184 square kilometre land holdings in the CMB and is a joint venture partnership with Silver Spruce Resources (“Silver Spruce”), whereby Silver Spruce retains a 40% ownership. Crosshair will be the operator of the project. The Two Time Zone has an existing NI 43-101 compliant indicated resource of 2.33 million pounds of uranium (U3O8) (1.82 million tonnes grading 0.058% U3O8) and an additional inferred resource of 3.73 million pounds of U3O8 (3.16 million tonnes grading 0.053% U3O8).
“The sale of this property to Crosshair will prove extremely beneficial to both parties. The shares of Crosshair received by Universal will give us a large position in the future of the entire property. Crosshair is better equipped to deal with the complexities of developing this property and has the geological staff and expertise to advance this discovery to production,” says Ron Atlas, President of Universal. “The 2% NSR allows Universal to participate directly in the profit potential of the property. The private placement made in Universal by Crosshair will allow Universal to concentrate its efforts on its Potash property in Saskatchewan, and on the acquisition of additional attractive mineral prospects currently under review.”
“We are pleased that the acquisition is complete and we look forward to expanding the Two Time Zone and also advancing a number of exciting discoveries in the area to the drill ready stage,” says Mark Morabito, CEO of Crosshair. “Together with our C Zone – Armstrong corridor, Crosshair now controls the only two 43-101 uranium deposits in the western portion of the CMB and both are outside the Labrador Inuit Land area.”
The Two Time Zone has a current strike length of 475 metres (m) and remains open along strike and to depth. The Two Time Zone is located approximately 17 km northwest of Crosshair’s C Zone. Significant uranium drill intercepts include:
- 0.052% U3O8 over 107 m including 0.11% U3O8 over 30 m in CMB-07-6
- 0.042% U3O8 over 109 m including 0.10% U3O8 over 32 m in CMB-07-14
The complete resource estimate can be found in the NI 43-101 report entitled Technical Report on the CMBNW Property, Labrador, Canada dated June 12, 2008, as filed on SEDAR on June 13, 2008 by both Universal and Silver Spruce.
As consideration for Universal’s interest in the Property, Crosshair paid to Universal CDN$500,000 and issued 10,000,000 common shares and 7,500,000 warrants. Each warrant entitles Universal to purchase an additional common share in the capital of Crosshair at CDN$1.00 per share for a period of three years from Closing subject to early expiry in the event that the average trading price of Crosshair’s common shares exceeds CDN$2.00 for a period of 20 days while the warrants are outstanding. The securities issued to Universal are subject to escrow for two years following the Closing, to be released in equal tranches in three month intervals. Universal will grant Crosshair’s management a voting proxy over any Crosshair shares it holds or acquires on exercise of the warrants. These escrow and voting provisions will expire if Universal distributes the securities to its shareholders. Universal will retain a 2% net smelter return royalty on its 60% interest in the Property, 0.5% of which may be purchased by Crosshair for CDN$1,000,000.
Crosshair has also purchased, by way of private placement, 2,222,222 units of Universal at a price of CDN$0.45 per unit. Each unit consists of one common share of Universal and one share purchase warrant entitling Crosshair to purchase an additional common share of Universal at a price of CDN$0.65 per Universal Warrant for a period of 24 months.
Universal Uranium Ltd. (CDNX:UUL.V) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable geo-political climates. The company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.
Universal Uranium Ltd.