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Message: ATOMIC SIGNS LETTER OF INTENT TO ACQUIRE OVER 2800 SQ. KILOMETERS OF URANIUM PRO
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ATOMIC SIGNS LETTER OF INTENT TO ACQUIRE OVER 2800 SQ. KILOMETERS OF URANIUM PROPERTY IN TANZANIA Atomic Minerals Ltd. ("Atomic" or the "Company") is pleased to announce that it has signed a letter of intent (the "LOI") with Geo Can Resources Company Ltd. ("Geo Can") to enter into an option agreement to earn the right to acquire up to a 90% interest in a land package totalling approximately 2800 square kilometres located in the United Republic of Tanzania (the "Property"). Atomic paid Geo Can a non-refundable deposit of US$65,000 on execution of the LOI. The two companies have agreed to negotiate a definitive option agreement (the "Option Agreement") by September 14, 2007 subject to the results of Atomic�s due diligence on the Property (including the preparation of a title opinion) and TSX Venture Exchange ("TSX-V") approval. The Property is located in southwestern Tanzania and is considered to be part of the Malawi Extension based on the location of the Property relative to blocks earmarked as potentially favourable for uranium enrichment. Historical Airborne Radiometric surveys over Tanzania (done by GeoSurvey International) have provided useful data regarding the area. Other mining companies exploring in the area include Paladin Resources (Malawi), Denison Mines and Western Metals (both in Tanzania). The Company intends to incorporate a Tanzanian subsidiary to hold Atomic�s interest in the Property and through which to administer day-to-day operations in the country. Atomic will co-ordinate its geological staff for the Property through Geo Can and rely on Geo Can�s past expertise in working in the area and in the country. The Option Agreement will be for a term of four years and will include the following terms, all subject to TSX-V approval: 1)Atomic will make cash payments and issue common shares to Geo Can as follows: a)On closing of the Option Agreement (the "Closing"), US$410,000 and 500,000 common shares; b)On the first anniversary of Closing, US$450,000 and 450,000 common shares; c)On the second anniversary of Closing, US$550,000 and 550,000 common shares; d)On the third anniversary of Closing, US$650,000 and 650,000 common shares; and e)On the fourth anniversary of Closing, US$750,000 and 750,000 common shares. Atomic may elect, at any time prior to the date on which the payments of the purchase price set out above are due, to pay up to 75% of the value of the Atomic common shares to be issued to Geo Can in cash, based on a 20-day average closing price of Atomic�s shares on the TSX-V (or such other stock exchange as Atomic may be listed on at the applicable time) prior to such election. 2)Atomic must incur yearly minimum exploration expenditures on the Property as follows: a)By the first anniversary of Closing, US$250,000; b)By the second anniversary of Closing, US$400,000; c)By the third anniversary of Closing, US$600,000; and d)By the fourth anniversary of Closing, US$750,000. The Property will also be subject to a 2% NSR royalty. Atomic may elect to purchase the remaining 10% of the Property at the following times for the specified amounts: a)On or before the first anniversary of Closing, for US$750,000; b)On or before the second anniversary of Closing, US$1,500,000; and c)On or before the third anniversary of Closing, US$1,750,000. Atomic Minerals is currently exploring over 1200 claims on the Dolores Anticline of Southwestern Colorado. It has additionally secured another 1535 claims of the Anticline under a LOI (see our news release dated June 11, 2007). The total land package in Colorado will include over 2700 claims in the Dolores Anticline and over 450 claims in Grand County, Colorado. The Dolores Claims are currently preparing for an early fall 2007 drill program that will include up to 10,000 meters of initial drilling. The Dolores Anticline remains as one of the last salt anticlines of the Uravan Minerals Belt and Paradox Basin to be explored for uranium. For further information on Atomic, please contact Warren McIntyre, the Company�s Chief Executive Officer at (604) 639-2866. "Warren McIntyre" Warren McIntyre President and Chief Executive Officer Atomic Minerals Ltd. |
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