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NewsFlash10 on Jul 12, 2005 9:56am
News
UGL and Maple complete uranium property due diligence
2005-07-12 07:11 ET - News Release
Shares issued 28,981,885
MPM Close 2005-07-11 C$ 1.18
From News Release (C-UGS) UGL Enterprises Ltd
Mr. Paul McKenzie of UGL Enterprises reports
MONGOLIAN URANIUM EXPLORATION TO COMMENCE IMMEDIATELY; MAPLE MINERALS FAVOURABLY COMPLETES DUE DILIGENCE ON UGL URANIUM PROPERTIES
UGL Enterprises Ltd.'s partner, Maple Mineral Corp., has completed its due diligence under the previously announced partnership agreement (see news issued in Stockwatch on June 15, 2005), between Maple and UGL Enterprises Ltd., covering UGL's Mongolian uranium properties. Field crews have been mobilized and will begin immediate exploration on several of the key uranium properties.
The work programs will include systematic prospecting to further define and locate the uranium targets. Under the terms of the partnership agreement, UGL will remain operator during all exploration programs. The work will be completed under the direction of Glenn Griesbach, PGeo, UGL's uranium project manager for Mongolia, who is acting as the qualified person for this project.
Under the partnership agreement, Maple has the option to earn a 50-per-cent interest in UGL's uranium exploration properties by expending $1.5-million (U.S.) over a three-year period, of which $350,000 (U.S.) must be spent within the first year. Maple may then increase its interest to 60 per cent by expending a further $2-million (U.S.) over a further three-year period. Should Maple choose not to exercise this additional option, a joint venture will proceed on a 50/50 financing and equity basis. The agreement provides for Maple to issue 50,000 shares to UGL within three days of receipt of TSX Venture Exchange acceptance of the agreement. In addition, should UGL exercise its option to acquire 100 per cent of the Nergui property from the local vendor, Maple will issue to UGL common shares in its capital to a value of $75,000 (Canadian).
The partnership agreement with Maple is subject to regulatory approval.