SASKATOON, SASKATCHEWAN -- (Marketwire) -- 08/26/09 -- Titan Uranium Inc. (TSX VENTURE: TUE)(FRANKFURT: T4X) ("Titan") is pleased to announce that it has entered into a definitive agreement (the Agreement) with Uranium One Inc. (TSX: UUU) to acquire the 50% interest held by Uranium One in the Sheep Mountain property, Fremont County, Wyoming. This will result in Titan holding a 100% interest in the property which hosts an NI 43-101 compliant Inferred Resource of 15.6 million pounds of U3O8. In conjunction with this transaction, Titan will acquire Uranium One's 50% interest in the Hollie claims, Emery County, UT and transfer its 50% interest in the Breccia Pipe project, AZ and the Burro Canyon project in Colorado to Uranium One.
The terms of the agreement include:
- An initial cash payment of US$850,000 for Sheep Mountain and for the Hollie claims;
- A payment of US$2,000,000 if the month-end spot uranium price reported by Ux Consulting Company exceeds US$65.00 per pound within three years of the closing date, payable within six months;
- A further payment of US$4,000,000 if the month-end spot uranium price reported by Ux Consulting Company exceeds US$85.00 per pound within three years of the closing date, payable within twelve months;
- Titan will assume the full amount of the reclamation bond for the property on closing (total bond amount is US$2.1M of which Titan has already contributed 50%);
- A credit of US$500,000 payable to Titan on closing, as payment for the transfer of Titan's 50% interest in the Breccia Pipes project in Arizona and in the Burro canyon project in Colorado to Uranium One; and
- The termination of the existing Joint Venture between the two companies.
Closing of the transaction is expected to take place by the end of September, 2009.
Brian Reilly, President of Titan commented, "This acquisition is a significant milestone in our growth strategy and positions the company as a potential near term uranium producer in a mining jurisdiction that has a long history of uranium production."
The Sheep Mountain deposit has an NI 43-101 compliant Inferred Resource of:
4,560,000 tons, average grade of 0.17% eU3O8, (15.6 million lbs contained U3O8).
This resource estimate was reported in a technical report on the Sheep Mountain uranium project, prepared for Uranium Power Corp. (UPC) by Scott Wilson Roscoe Postle Associates Inc. and authored by C. Stewart Wallis, P. Geo. dated October 10, 2006. Additional information including the estimation method and cut-off grade may be found in the report which was filed on UPC's SEDAR profile on October 12, 2006.
In addition to the above mineral resource estimate by Scott Wilson RPA, UPC has previously reported a historical Mineral Resource estimate for the North Gap Pit area of 6.5 million pounds contained U3O8.
