2007 News Releases
Mega Provides Update on Twenty-Seven Capital Corp. Acquisition
January 25, 2007
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Toronto, Ontario, Canada, January 25, 2007 – Mega Uranium Ltd. (MGA-TSX) (“Mega”) is pleased to provide the following update of its acquisition of Twenty-Seven Capital Corp. (“TSC”) (TSC-TSXV).
TSC has filed (at www.sedar.com) and mailed its meeting materials in respect of the shareholders’ meeting to be held on February 7, 2007 to consider the acquisition.
At the meeting, TSC shareholders will be asked to approve the three-cornered amalgamation, whereby a wholly-owned subsidiary of Mega will amalgamate with TSC and Mega will issue common shares and warrants to the former shareholders of TSC on the basis of one common share of Mega and one-half of one Mega common share purchase warrant in exchange for each three (3) TSC common shares. Upon completion of the amalgamation, the resulting company will be a wholly-owned subsidiary of Mega.
Each whole Mega common share purchase warrant (a “Mega Warrant”) will entitle the holder to acquire one Mega common share for a purchase price of $6.00 per share for a period of 5 years from the date of issuance. Mega has received conditional approval from the Toronto Stock Exchange to list the common shares and the Mega Warrants issuable under the acquisition. Subject to Mega fulfilling all of the requirements of the Toronto Stock Exchange, the Mega Warrants will trade under the symbol MGA.WT.
Mega will provide a further update following completion of the TSC shareholders meeting. Further details about the transaction can be found at www.sedar.com under TSC’s profile and in Mega’s October 31, 2006 press release.
About Twenty-Seven Capital
Twenty-Seven Capital Corp. is a junior mining company exploring for uranium and iron-oxide copper-gold (IOCG) deposits. It holds twenty-three significant projects in Yukon, four in British Columbia, and one in each of the Northwest Territories and Mexico. Twenty-Seven Capital's primary assets are its uranium and IOCG properties in the Wernecke Mountains of Yukon, which are under option to Cash Minerals Ltd. (“CHX”-TSXV). Most of the Yukon projects host uranium showings, some of which were aggressively explored in the late 1970s and early 1980s by majors before uranium prices dropped.
About Mega Uranium
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Mongolia, Bolivia 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 regarding the proposed acquisition of TSC. Actual results and developments may differ materially from those contemplated by these statements depending on, among others, the risks that Mega and TSC will not be able to obtain the required approvals or clearances from regulatory or other agencies and bodies on a timely basis or other conditions to completion of the acquisition will not be satisfied. The forward-looking statements included in this release represent Mega’s and TSC’s views as of the date of this release. While Mega and TSC anticipate that subsequent events and developments may cause their views to change, Mega and TSC specifically disclaim any obligation to update these forward-looking statements. These forward-looking statements should not be relied up as representing the views of Mega and TSC as of any date subsequent to the date of this release.
For further information, please contact:
Mega Uranium Ltd.
Richard Patricio, VP Corporate and Legal Affairs
Telephone: (416) 643-7630