St Georges`s basin getting crowded.Welcome aboard to the latest junior uranium player desperately trying to rebrand itself by picking up some ground near us. All press is good press, the more money that goes into this formation the better for us.
May 20, 2008 09:00 ET
Universal Uranium Ltd. Acquires Strategic Potash Property and Announces$3.15 Million Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 20, 2008) - Universal UraniumLtd. (the "Company") (TSX VENTURE:UUL) is pleased to announce that it hasentered into an agreement, subject to regulatory approval, to acquire a 100%interest in 816 claims totaling 204 sq km (the "Property") located in theSt.George's Bay Basin in western Newfoundland, from Alpha Uranium ResourcesInc.
The St.George's Basin is geologically analogous to the Monctonsubbasin in New Brunswick, which is Canada's second major potash miningdistrict. The Property is bordering properties currently held by AltiusResources Inc., Sprott Resource Corp. and Vulcan Minerals (view map at www.universaluranium.com).
Previous drilling in severalareas of the St. George's Basin have revealed large thicknesses of evaporiticrocks hosting significant beds of potash and carnallite. Universal plans tocompile and re-interpret the historical data on the property in preparation forundertaking additional geophysical surveys on the newly acquired ground.Subsequent drilling will begin on the most favorable targets during the upcomingfield season.
Under the terms of the Agreement, the Company will acquirea 100% interest in the Property by paying on closing; (i) CDN$40,000 in cashand, (ii) 500,000 previously unissued common shares of the company. The deemedprice of these shares will be the closing price of the company's shares on theday of this news release. A finder's fee will apply in thistransaction.
Ron Atlas, President and CEO of Universal Uranium, states:"Universal has, up till now, acquired and developed only uranium properties, andwill continue to develop those assets. However, we feel that the reasons foracquiring such a strategic potash property, were simply toocompelling."
In conjunction with this acquisition, the Company hasarranged a non-brokered private placement consisting of 7,000,000 units at$0.45, for total proceeds of $3.15 million. Each unit consists of one commonshare and one whole transferable share purchase warrant. Each warrant isconvertible into one common share at a price of $0.65 for a period oftwenty-four (24) months. The proceeds from this financing will be used forworking capital, development of the newly acquired property and development ofour existing uranium projects. A finder's fee will apply in this privateplacement in accordance with the policies of the TSX Venture Exchange. Thefinancing is subject to regulatory acceptance.
Universal Uranium Ltd.(TSX VENTURE:UUL) is a publicly held Canadian exploration company focused onacquiring, exploring and developing mineral properties located in favorablegeo-political climates. The company is led by a highly skilled, experiencedboard and management team with significant successes in managing early stagemineral exploration companies.
ON BEHALF OF THE BOARD:
RonaldAtlas, President & Chairman of the Board
The Company seeks SafeHarbour.
Standard & Poor's Listed
Issued Share Capital:44,115,069