Mar 20 2013
Lions Gate Metals Inc. ("Lions Gate" or the "Company") is pleased to announce that it has entered into an option agreement (the "Agreement") with an arm's-length vendor, by which the Company can earn a 100-per-cent (100%) interest in the Whitford Lake uranium project, which covers 67 hectares in the Athabasca Basin, in Saskatchewan (the "Property").
The Whitford Lake Project is located, some 21km SE of the Cigar Mine on the eastern edge of the Athabasca Basin, the most productive uranium region in the world. Other claimholders in the area include Fission Energy, Purepoint Uranium, Denison Mines and Cameco Corporation. The primary target at Whitford Lake is two northeast, parallel magnetic contacts, between which lies a zone of subsurface resistivity, with a strike length of roughly 750m. Drilling at Whitford Lake by Cameco in 1995 identified a zone of altered sandstone, beginning 30m above the unconformity, enriched with chlorite and illite, which is indicative of hydrothermal activity. In addition, elevated lead levels below the unconformity have also been identified. All of these enrichments are key exploration indicators for uranium exploration in the Athabasca basin.
Under the terms of the Agreement, the Company can earn a 100-per-cent (100%) interest in the Property by paying $100,000 initially and issuing two million five hundred thousand (2,500,000) common shares to the vendor. 1,000,000 shares will be issued within 5 days of regulatory approval with the balance being distributed under an escrow agreement over the next 18 months (500,000 share increments ever six months). The Company must make additional payments of $1,150,000 and complete $3,000,000 in exploration expenditures on the Property within the next 4 years. A 1-per-cent (1%) net smelter royalty has been granted to the vendor, of which a half per-cent (0.5%) may be purchased by the Company for $750,000. The Agreement is subject to regulatory approval.
"As we advance the option agreement on the Poplar Copper, Silver, Gold deposit the company has been looking for additional opportunities for expansion featuring geographical and commodity diversification. Our Lions Gate team has the skill sets and contacts in the Uranium Sector. The company's management is of the mindset that the Uranium sector will see renewed interest as the market realizes the supply and demand delta is widening. Management also feels asset values have 'bottomed-out' and at this stage projects such as Whitford Lake represent excellent value for money," commented CEO & Chair, Arni Johannson.
Source: http://www.lionsgatemetals.com/