Mr. Gil Schneider reports
ATHABASCA URANIUM ACQUIRES STRATEGIC EAST KEY LAKE OPTION
Athabasca Uranium Inc. has entered into an agreement with an arm's-length vendor by which the company has the option to earn a 100-per-cent interest in the East Key Lake property in northeast Saskatchewan.
The 749-hectare East Key Lake Property is located on the eastern margin of the uranium-rich Athabasca Basin, the most productive uranium-producing region in the world. The Property is adjacent to Hathor Exploration's Russell South Project and Triex Minerals' Highrock Project, and is approximately 15 kilometers from Cameco's Key Lake Mine, which has historic production of over 200 million pounds of uranium and is currently processing ore from the McArthur River Mine.
The Company can earn a 100% interest in the Property by paying $40,000 and issuing 1,000,000 common shares to the Vendor, by making additional payments totalling $750,000 over the next 42 months and by filing $3,000,000 in exploration expenditures on the Property within four years. A 1% net smelter return royalty has also been granted to the Vendor, which may be purchased by the Company for $1,500,000. The Agreement is subject to regulatory approval.