Mesa Uranium Signs Letter of Intent to Acquire Potash Project
posted on
Aug 27, 2010 01:21PM
exploring a portfolio of premier uranium, lithium and potash properties in the United States
News Release - Wednesday, August 25, 2010
Mesa Uranium Corp. (TSX-V: MSA) is pleased to announce that it has
signed a letter of intent to acquire the Pine Valley Potash Project
located in southwestern Utah. The project totals 5,227 acres
consisting of State of Utah Leases and Federal Potash Prospecting
Permits.
The deposit has an in-situ mineral inventory (non NI 43-101 compliant)
of 82.7 million tons averaging 35.5% alunite (19.5 million tons
indicated and 63.2 million tons inferred). This resource is historical
in nature and was calculated using US Bureau of Mines protocols which
was the industry standard prior to NI 43-101 standards. Investors are
cautioned not to use this information in making investment decisions.
The commercial products from alunite are potash, as sulfate of
potassium ("SOP"), sulfuric acid and alumina. The resource could
theoretically support an operation producing 104,000 tons of SOP,
200,000 tons of alumina and 184,000 tons of sulfuric acid per year for
more than 25 years. The deposit is shallow and would be mined by
low-cost surface mining methods. The area is accessed by well
maintained gravel roads, supports year round work and is 15 miles from
a main line siding of the Union Pacific Railroad.
Under the letter of intent, Mesa will acquire a 100% interest in the
project by paying the owner $25,000 upon signing a definitive
agreement, $25,000 and 800,000 Mesa shares on January 1, 2011,
thereafter payments of $10,000 annually. The owner will retain a 1%
NSR royalty which Mesa has the option to purchase one-half for US
$500,000. Closing of the transaction is expected on or before October
4, 2010. The transaction is subject to completion of final due
diligence by Mesa, execution of a binding definitive agreement and
regulatory approval.
About Mesa Uranium
Mesa is exploring a portfolio of premier lithium, potash and uranium
properties in the United States where it controls significant land
holdings. All projects are within proven mining districts with
excellent access and infrastructure. Mesa currently has 10,945,376
shares issued and outstanding, 12,476,210 shares on a fully-diluted
basis. For further information please visit our website at
www.mesauranium.com.
ON BEHALF OF THE BOARD
MESA URANIUM CORP.
(signed) Foster Wilson, President and CEO
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, including the likelihood of
commercial mining and possible future financings are forward-looking
statements. Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include
unsuccessful exploration results, changes in metals prices, changes in
the availability of funding for mineral exploration, unanticipated
changes in key management personnel and general economic conditions.
Mining is an inherently risky business. Accordingly the actual events
may differ materially from those projected in the forward-looking
statements. For more information on the Company and the risks and
challenges of its business, investors should review the Company's
annual filings that are available at www.sedar.com
For further information call:
Susan Bertling, 1-604-688-7508
The TSX Venture Exchange has neither approved nor disapproved of the
contents of this news release.