Million Commitment at Nose Rock, New Mexico Uranium Project ALBUQUERQUE, N.M., June 18 /PRNewswire-FirstCall/ -- Nu-Mex Uranium Corp. ("Nu-Mex" or "the Company") has amended its previously disclosed Letter Of Intent ("LOI") with Strathmore Resources (US) Ltd. ("Strathmore"), to form a joint venture (the "Joint Venture") in order to explore and develop Strathmore's Nose Rock properties (the "Nose Rock" project). The revised LOI terms now provide for increases in the scheduled expenditure commitments as previously disclosed. In this regard, and for additional work commitments of US $25.5 million, for a new total of US $44.5 million, and a reduction of US $6 million in the previously scheduled payments to Strathmore, Strathmore has now granted Nu-Mex an additional 5% in the Joint Venture. Nu-Mex can now earn-in a 65% interest in the Nose Rock project. In addition, Strathmore has granted Nu-Mex a right of first refusal to negotiate a joint venture agreement for Strathmore's Dalton Pass, New Mexico, uranium project. The Nose Rock project is located northeast of Crownpoint within the Grants Mineral Belt in the State of New Mexico. Strathmore acquired the project through mineral leases or by claim staking and the Nose Rock project as a whole consists of approximately 5,000 acres (2,023 Ha) of land. As per the amended terms of the LOI, Strathmore has granted Nu-Mex the sole and exclusive right and option to earn-in a 65% interest in the Nose Rock project. The material terms of the LOI are summarized as follows (all dollar amounts are in US $): 1. Nu-Mex paying to Strathmore $250,000 and issuing 5,000,000 common shares in the capital stock of Nu-Mex on closing of a definitive agreement to be presented and respecting the LOI terms; and 2. Nu-Mex incurring a total of $44,500,000 in work commitment expenditures on the Nose Rock project (collectively, the "Expenditures") in accordance with the following schedule: -- $1,000,000 work commitment Expenditures are to be incurred in each of the first and second years from closing; -- an additional $1,500,000 work commitment Expenditures are to be incurred in the third year from closing, -- an additional $10,000,000 work commitment Expenditures are to be incurred in each of the fourth, fifth and sixth years from closing, and -- an additional $11,000,000 work commitment Expenditures are to be incurred in the seventh year from closing. Nu-Mex will earn a 25% interest in the Nose Rock project once it has completed its work commitments (US $13,500,000) on or before the anniversary of the fourth year from closing. Nu-Mex will earn an additional 40% interest in the project once Nu-Mex has completed its additional work commitments (US $31,000,000 in work) on or before the anniversary of the seventh year from closing. The LOI provides for accelerated work and Expenditure commitments should a future project evaluation demonstrate that a feasibility study could be completed at an earlier date in respect of the project. After the fourth year from closing, and provided Nu-Mex has fulfilled its commitments, the parties shall review all work completed under the terms of the Joint Venture and prepare an independent NI 43-101 compliant technical report and, if applicable, resource calculation. Recommendations from this report will help plan further development initiatives. Following the seventh anniversary from closing, or such other mutually agreed upon time, and should it be deemed applicable, the project Operator will retain a third party engineering firm to prepare a Bankable Feasibility Study respecting the project. Should the third party evaluation result in a positive recommendation, Strathmore and Nu-Mex will then proceed with their pro-rata payments under the Joint Venture to further develop the project. Strathmore will have up to 90 days after the date the Bankable Feasibility Report is delivered to elect whether or not to earn back an 16% undivided interest in the project by paying US $25,000,000 to Nu-Mex; provided Nu-Mex has met all its obligations to earn 65% prior thereto. The parties will use their best efforts to obtain all regulatory and other approvals and close within 90 days of the date of LOI or as soon as mutually agreed upon thereafter. Strathmore is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties. Headquartered in Kelowna, British Columbia, the Company also has US based Development Offices in Riverton, Wyoming and Santa Fe, New Mexico. Nu-Mex Uranium Corp. (OTC Bulletin Board: NUMX) is an international uranium mining company with corporate offices in London, England, and operational offices in New Mexico, US. Its foundational assets are located in the southwest United States. The Company is focused on the development of in-ground uranium projects. For further information see: www.nu-mexuranium.com Symbol: OTCBB - NUMX; Frankfurt AN$, WKN NO. A0MUN4 Contact North America: Investor Relations Tel.: 866-676-0153 Contact Europe: Investor Relations Tel.: +44-20-7665-1646 SAFE HARBOR STATEMENT THIS NEWS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS", AS THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE UNITED STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL, ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE FUTURE. EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING STATEMENTS THAT ARE PRECEDED BY, FOLLOWED BY, OR THAT INCLUDE SUCH WORDS AS "ESTIMATE," "ANTICIPATE," "BELIEVE," "PLAN" OR "EXPECT" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS. RISKS AND UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE RISKS ASSOCIATED WITH PROPERTY DEVELOPMENT AND FUNDING AS WELL AS THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL REPORT ON FORM 10-KSB AND ON FORM 10-QSB AND FROM TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL REQUIREMENTS, THE COMPANY'S ABILITY AND LEVEL OF SUPPORT FOR ITS EXPLORATION AND DEVELOPMENT ACTIVITIES AND THE ENTERING INTO AND CLOSING OF A DEFINITIVE OPTION AND JOINT VENTURE AGREEMENT TO ITS PRESENT LOI WITH STRATHMORE IF AT ALL. THERE CAN BE NO ASSURANCE THAT THE COMPANY'S DEVELOPMENT EFFORTS WILL SUCCEED AND THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS, EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC REPORTS FILED FROM TIME-TO-TIME WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION. THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. EACH OF THE NASD, THE SEC AND THE OTCBB NEITHER APPROVES NOR DISAPPROVES OF THE CONTENTS OF THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH JURISDICTION. SOURCE Nu-Mex Uranium Corp. CONTACT: North America: Investor Relations, +1-866-676-0153, or Europe: Investor Relations, +44-20-7665-1646 -0- Jun/18/2007 13:15 GMT
Nu-Mex Uranium Amends Agreement With Strathmore for US $44.5
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