Mega Uranium Ltd. and Cameco Australia Pty Ltd Enter Farm in and Joint Venture
Term Sheet for Kintyre Rocks Project, Western Australia
TORONTO, ONTARIO -- (Marketwired) -- 07/11/13 -- Mega Uranium Ltd.
(TSX:MGA) ("Mega" or the "Company") is pleased to announce that it
has entered into a non-binding farm in and joint venture term sheet
("Term Sheet") with Cameco Australia Pty Ltd ("Cameco"), a wholly
owned subsidiary of Cameco Corporation (TSX:CCO)(NYSE:CCJ), in
respect of certain granted tenements and tenement applications that
comprise Mega's Kintyre Rocks project, located in the East Pilbara
region of Western Australia ("Project"). The Project, owned by Boxcut
Mining Pty Ltd ("Boxcut"), a wholly owned subsidiary of Mega,
immediately surrounds the lease containing the Kintyre uranium
deposit, jointly owned by Cameco and Mitsubishi Development Pty Ltd
Mega and Cameco will now work towards negotiating and entering into a
formal binding farm in and joint venture agreement in respect of the
Project ("Definitive Agreement").
Pursuant to the Term Sheet and subject to the negotiation, execution
and delivery of a Definitive Agreement:
-- Cameco may earn an initial 51% interest in the Project by sole funding
expenditure for exploration activities of AUD$2 million within 24 months
from the date of the Definitive Agreement (the "Stage 1 Farm In").
-- Upon Cameco earning a 51% interest in the Project, Boxcut and Cameco
will form a joint venture for the purpose of maintaining and exploring,
and, if justified, the development and mining of, the Project.
-- Cameco will be the operator of the Project during the Stage 1 Farm In
period and the manager of the joint venture after the joint venture
-- Cameco may elect to earn an additional 19% interest in the Project (for
an aggregate total interest of 70%) by sole funding expenditure for
exploration activities of AUD$4 million (inclusive of the AUD$2 million
expenditure to earn a 51% interest in the Project) within four (4) years
from the date of the Definitive Agreement.
The Term Sheet otherwise contains terms, representations and
warranties that are customary for an agreement of its kind.
Establishing a joint venture with Cameco represents a great
opportunity for Mega to advance the exploration and development of
the Project with a world class joint venture partner that has
significant uranium exploration and other expertise in the area.
Mega looks forward to working with Cameco to reach a Definitive
Agreement to advance the Project.
Kintyre Rocks Project, Western Australia
The Project proposed to be farmed out to Cameco comprises granted
exploration licences E45/2690 and E45/2691, and applications for
prospecting licences P45/2657, P45/2658 and P45/2659. These tenements
surround the lease containing the Kintyre uranium deposit, jointly
owned by Cameco and Mitsubishi. Within Mega's ground are geological
settings analogous to that of the Kintyre deposit.
To view the map associated with this press release, please view the
following link: http://media3.marketwire.com/docs/MGA_CCO_Map.jpg.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a
focus on uranium properties in Australia, Canada and Cameroon.
Further information on Mega can be found on the company's website at
NOTE REGARDING FORWARD-LOOKING INFORMATION
Certain information contained in this press release constitutes
"forward-looking information", which is information regarding
possible events, conditions or results of operations that is based
upon assumptions about future economic conditions and courses of
action. All information other than matters of historical fact may be
forward-looking information. In some cases, forward-looking
information can be identified by the use of words such as "seek",
"expect", "anticipate", "budget", "plan", "estimate", "continue",
"forecast", "intend", "believe", "predict", "potential", "target",
"may", "could", "would", "might", "will" and similar words or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. Forward-looking information in this
press release includes, but is not limited to, statements about our
plans regarding future property development, the entry into a
Definitive Agreement and the fulfillment of each party's obligations
under any such Definitive Agreement.
By its nature, forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or industry results, to differ
materially from those expressed or implied by such forward-looking
information. Some of the risks and other factors that could cause
actual results to differ materially from those expressed in the
forward-looking information contained in this release include, but
are not limited to: the inability of Mega and Cameco to agree upon
terms and to enter into a Definitive Agreement, risks related to
results of unsatisfactory due diligence, risks associated with the
mineral exploration industry generally (including the geology, grade
and continuity of mineral deposits and conclusions of economic
evaluations; results of initial feasibility, pre-feasibility and
feasibility studies, and the possibility that future exploration,
development or mining results will not be consistent with the
Company's expectations), the potential for delays in exploration or
development activities or the completion of feasibility studies;
risks related to commodity price and foreign exchange rate
fluctuations; the uncertainty of profitability based upon the
cyclical nature of the industry in which the Company operates; risks
related to failure to obtain adequate financing on a timely basis and
on acceptable terms or delays in obtaining governmental approvals or
in the completion of development or construction activities; risks
related to environmental regulation and liability; political and
regulatory risks associated with mining and exploration; and other
risks and uncertainties related to the Company's prospects,
properties and business strategy.
Although we have attempted to identify important factors that could
cause actual results or events to differ materially from those
described in the forward-looking information, readers are cautioned
that this list is not exhaustive and there may be other factors that
we have not identified. Readers are cautioned not to place undue
reliance on forward-looking information contained in this release.
Forward-looking information is based upon our beliefs, estimates and
opinions as at the date of this release, which we believe are
reasonable, but no assurance can be given that these will prove to be
correct. Furthermore, we undertake no obligation to update or revise
forward-looking information if these beliefs, estimates and opinions
or other circumstances should change, except as otherwise required by
All forward-looking information contained in this release is
expressly qualified by this cautionary note.
Mega Uranium Ltd. - Investor Relations
VP Corporate and Legal Affairs
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