2006 News Releases
Mega Uranium to Acquire Uranium Rights in Bolivia
Toronto, Ontario, March 8, 2006: Mega Uranium Ltd. (“Mega”) (MGA:TSXV) is pleased to announce that it has entered into an Agreement with Intrepid Minerals Corporation (“Intrepid”) (IAU:TSXV) in Bolivia, whereby Mega can earn a 75% interest in the uranium-molybdenum content of 16 exploration concessions held by Intrepid, while Intrepid will retain the majority rights to its priority precious metal targets. Any additional property with uranium potential acquired in Bolivia by either party during the course of the Agreement will be subject to the Agreement.
Under the Agreement, Mega can earn a 75% interest in the uranium mineralisation in the 16 exploration concessions, and additional properties acquired, through a total expenditure of US$500,000 within three years, of which US$100,000 must be incurred within 12 months of the date of the Agreement. The Agreement is subject to Mega having up to a 60 day period to conduct due diligence of the properties. Upon satisfactory due diligence, the parties will enter into a formal agreement, following which Mega will issue Intrepid 10,000 common shares.
When Mega earns its 75%, both parties will have the option of funding to maintain their respective interests, or of diluting in accordance with the standard dilution formula. Should a party dilute to a 10% interest or less, it will automatically revert to a 1% NSR.
Should the joint venture discover other potentially commercial mineral deposits other than uranium-molybdenum in its exploration, such deposits will be excised from the Agreement and be the subject of a separate agreement in which Intrepid will be accorded a 75% interest and Mega will have a 25% free-carried interest.
The properties currently subject to the Agreement are located within two geographically separate entities of Bolivia, the Altiplano and the Precambrian of Eastern Bolivia, and contain potential for two styles of uranium mineralisation.
In the Altiplano, the three concessions, totaling 20.5 km square, cover Miocene ignimbritic volcanics in the vicinity of the old Cotaje uranium workings, and contain potential for structurally-controlled uranium mineralisation similar to the Macusani Belt of the Puno area of southern Peru.
In the Precambrian area of eastern Bolivia, the 13 concessions, totaling 117 km square, cover radiometric anomalies which were detected along the Middle Proterozoic/Lower Proterozoic unconformity by airborne surveys conducted by the British Geological Survey in 1992-1996. Potential for unconformity-related uranium deposits is indicated by the presence of graphitic sediments close to the unconformity in both the Middle Proterozoic and Lower Proterozoic sequences and by an overall geological setting which is similar to that of the uranium mineralisation of the Athabaska Basin in Canada and the Pine Creek area of Northern Territory, Australia.
Mega will manage the uranium exploration programmes in cooperation with Jim McNamee, a long time resident in Bolivia with considerable expertise in the country’s geology and mineralisation.
Stewart Taylor, Mega’s President is the Qualified Person responsible for this news release.
Mega Uranium Ltd. is a Toronto–based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia and Canada. Further information on Mega can be found on the company’s website at www.megauranium.com
This news release contains forward-looking statements within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors that may cause Mega’s results to differ materially from expectations. These include risks relating to market fluctuations, property performance and other risks. These forward-looking statements speak only as of the date hereof. Mega Uranium disclaims any intent or obligation to update these forward-looking statements and cautions investors from placing undue reliance on forward-looking statements. Mega does have an ongoing obligation to disclose material information as it becomes available.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information, please contact:
Mega Uranium Ltd.
Sheldon Inwentash, CEO
Telephone: (416) 643-7630