Highrock completes acquisition of Liberty Uranium Highrock completes acquisition of Liberty Uranium
2024-09-06 17:39 ET - News Release
Mr. Derrick Dao reports
HIGHROCK RESOURCES COMPLETES ACQUISITION OF LIBERTY URANIUM CORPORATION
Further to Highrock Resources Ltd.'s press release of Aug. 20, 2024, it has acquired all of the issued and outstanding shares of Liberty Uranium Corp. from Atikokan Resources Ltd. (the vendor). The acquisition was completed in accordance with a share purchase agreement dated Aug. 16, 2024, between the company, Liberty Uranium and the vendor. Liberty Uranium is a private company incorporated pursuant to the laws of the State of Nevada and owns 100-per-cent undivided interest in the Dry Creek uranium project, located in the Uravan mineral belt, one of the most prolific uranium-producing districts in the United States, accounting for about 77 per cent of all uranium production in Colorado, according to the Colorado Geological Survey.
Commenting on the closing of the acquisition, Derrick Dao, chief executive officer of Highrock, notes, "The closing of the acquisition of Liberty Uranium and the property officially positions Highrock as an American uranium company and sets the company up for further activity in the region."
Strategic rationale for the acquisition:
- The acquisition advances Highrock's consolidation strategy and positions the company in the strategically important Uravan mineral belt.
- Mines in the Uravan have produced over 75 million pounds of uranium from ore averaging 0.24 per cent and over 400 million pounds of vanadium.
- Proximity to uranium mill infrastructure to process mine ore.
- Colorado is an agreement state of the Nuclear Regulatory Commission, providing the state with nuclear regulatory authority, resulting in more efficient permitting.
- Provides significant exploration upside.
About the property
The property is located approximately 60 miles northeast of the White Mesa mill, located near Blanding in Utah.
The property has all the characteristics of historic mines elsewhere in the region that are host to multimillion-pound uranium-vanadium resources, including the Sunday mine complex, the Topaz mine, the Burro mine complex, amongst others. This assessment is based on the property's location, favourable sandstone characteristics and proximity to an inferred major redox boundary. The company cautions investors that mineralization hosted on nearby or adjacent properties is not necessarily indicative of mineralization hosted on the property.
Historic and 2008 exploration drilling confirm the presence of U-V mineralization and favourable channel sandstones. Several exceptionally high vanadium mineral intercepts (13 to 22 per cent V2O5) exist in the area based on historical proprietary assay data from Homeland Uranium Inc.
Historic drill hole data within the property includes over 20 holes drilled by Petro Nuclear and Union Carbide Corp. in the 1970s and early 1980s, and an additional 30 holes nearby. There are numerous historical small mines and prospects along the nearby faulted ridgeline to the south-southwest. The Dry Creek claims area, especially the northern part near the redox boundary, remains relatively underexplored, presenting significant exploration upside.
Two holes drilled by Union Carbide each intersected almost one foot of uranium mineralization that was accompanied by very high-grade vanadium mineralization between 13 per cent and 20 per cent. In 2008, a further drill program was completed by Homeland Uranium Inc.
Terms of the acquisition
As consideration for Liberty Uranium, the company: (i) issued the vendor an aggregate of six million common shares in the capital of the company; and (ii) made a cash payment of $100,000 evidenced by an unsecured promissory note in the amount of $100,000 in favour of the vendor.
All securities issued pursuant to the acquisition are subject to a statutory hold period of four months and one day from the issuance thereof, as applicable, in accordance with applicable securities laws.
Qualified person review
The technical and scientific information contained within this news release have been reviewed and approved by James Pirie, PEng, a director of the company and a qualified person as defined by National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The qualified person has not completed sufficient work to verify the historic information on the property. The information provides an indication of the exploration potential of the property but may not be representative of expected results.
About Highrock Resources Ltd.
Highrock Resources is advancing uranium assets in the United States and supporting North American nuclear energy security for a sustainable energy economy and a more technologically advanced tomorrow.
We seek Safe Harbor.
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