(15-20 min delay)
Mega Uranium Ltd.
211 Yonge Street, Suite 502
Toronto, Ontario, Canada
2007 News Releases
Mega Uranium Ltd. Releases Unaudited Results for the Three and Nine Months Ended June 30, 2007
August 14, 2007
Mega Uranium Ltd. (“Mega”) (TSX: “MGA”) today announced its unaudited results for the three and nine months ended June 30, 2007.
As at June 30, 2007, Mega had cash, cash equivalents and marketable securities totaling $105.9 million as compared to $41.3 million at the end of September 30, 2006, an increase of 155%. As at June 30, 2007, the Company had mineral properties and related expenditures of $351.4 million as compared to $56.8 million as at September 30, 2006. The increase is primarily due to Mega’s acquisition of Redport Limited, Twenty Seven Capital Corp. and Monster Copper Corporation.
Results for the three months ended June 30, 2007 as compared to the three months ended June 30, 2006:
- Revenue increased to $1,647,746 as compared to revenue of $383,073 for the three months ended June 30, 2006.
- Total expenses were $5,147,283 as compared to $3,285,188 for the three months ended June 30, 2006.
- Net loss in the quarter was $3,517,501 ($0.02 per basic common share) as compared to a net loss of $2,902,115 ($0.03 per basic common share) for the three months ended June 30, 2006.
Results for the nine months ended June 30, 2007 as compared to the nine months ended June 30, 2006:
- Revenue was $13,543,516 as compared to total revenue of $631,765 for the nine months ended June 30, 2006.
- Total expenses were $19,413,145 as compared to $8,292,797 for the nine months ended June 30, 2006.
- Net loss was $6,288,988 ($0.05 per basic common share) as compared to a net loss of $7,661,032 ($0.09 per basic common share) for the nine months ended June 30, 2006.
Mr. Sheldon Inwentash, Chairman and CEO of Mega Uranium, stated, “During the quarter we continued to build on our successful track record of acquiring companies with quality uranium properties. The addition of Monster Copper and Nu Energy, which closed today, will strengthen our property portfolio and complement our vision of becoming a mid-tier uranium producer.” He continued, “We have had some very encouraging initial results from our 2007 uranium programme and I look forward to reporting more in the future.”
Mega’s President, Stewart Taylor, commented, “I would like to welcome the Monster Copper team, especially Michael Downes, who has assumed a Vice President role with Mega focusing on Canadian projects. Michael has extensive experience in mineral exploration in both Canada and South America and is an excellent addition to our technical team. He will be focusing on driving our exploration and acquisition initiatives in Canada from Mega’s corporate office in Toronto.
During the quarter, Mega announced the closing of its acquisition of Monster Copper which is now a wholly-owned subsidiary of Mega. Monster Copper’s primary assets include prospective uranium exploration projects in the Central Mineral Belt of Labrador, Canada.
Mega also added to its property position in the Central Mineral Belt through an agreement with Santoy Resources Ltd. (“Santoy”) (“SAN”-TSXV) to acquire all of Santoy’s right, title and interest in three projects in the region.
In addition, during the quarter Mega announced its intention to acquire Nu Energy Uranium Corporation. The acquisition closed today. Nu Energy’s principal assets are a 92% interest in the Kitongo and Lolodorf uranium properties located in the Republic of Cameroon, Africa.
During the quarter, Mega unveiled its 2007 uranium program. The total program budget by Mega and its joint venture partners exceeds $40 million. Exploration programs planned in Australia, Canada, South America and Mongolia include approximately 65,000 metres of RC/diamond drilling.
Throughout the quarter, Mega provided numerous updates on its exploration projects. Highlights included:
- Numerous untested uranium radiometric anomalies in favourable geological settings were identified at Mega’s Georgetown Project in northern Queensland, Australia.
- Validation drilling of the Maureen uranium-molybdenum resource in Queensland, intersected 14 metres @ 1.61% U3O8 and 0.48% Mo.
- Drilling of the FW5 Zone, 2.4 kilometres south-southwest of Maureen, intersected 20 metres @ 0.52% U3O8 and 0.30% Mo.
- In the Gunbarrel Basin of Western Australia, Mega’s Joint Venture partner, ASX-listed Aura Energy, commenced an airborne radiometric survey over a palaeochannel in its Junction Project.
- In the Kintyre Rocks Project, Mega announced that the required procedures are underway to obtain approval from the Martu Native Title landowners and from the State Mines Department for drill testing of targets.
- In South Australia, Mega received encouraging reconnaissance drilling results in the Cronje Dam Project.
- Mega’s JV partner Cash Minerals intersected visible native copper at the Odie prospect, Wernecke Uranium District, Yukon. Drilling results were reported on June 26, 2007.
- Cash Minerals commenced drilling on the Lumina and Igor prospects in June.
- Mega’s joint venture partner, Red Hill Energy Inc., commenced its 2007 field season activities with a programme of geological mapping, truck-borne radiometric surveys and AlphaCard radon gas surveys in the Ganga property in Dornogovi Province.
- New property interests were acquired in Salta, Catamarca and Chubut Provinces in Argentina.
- Mega received encouraging uranium sample results in the Patagonia Project, Argentina - results indicated significant potential for several shallow horizons of uranium mineralisation in the Sierra Cuadrada and Mirasol prospect areas - chip sample results of the mineralized horizons include 1 metre @ 1.89% U3O8, 0.5 metre @ 1.5% U3O8, 0.4 metre @ 1.18% U3O8 and 1 metre @ 0.6 % U3O8.
- Field checking of areas of interest is underway in Bolivia where Mega is earning 75% of the uranium-molybdenum content of exploration concessions held by Intrepid Mines Ltd.
- In Colombia, reconnaissance geological mapping, rock/stream sediment sampling and ground radiometric surveys were undertaken in the Betulia concession in the Zapatoca Uranium District of Santander Province.
Stewart Taylor, Mega’s President and Qualified Person under NI43-101, is responsible for this release and has verified the contents disclosed.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineral resources company with a focus on uranium properties in Australia, Argentina, Bolivia, Canada, Colombia and Mongolia. Further information on Mega can be found on the company’s website at www.megauranium.com. Mega Uranium’s Australian uranium properties, including without limitation the Ben Lomond, Maureen and Lake Maitland properties, are subject to state policies which presently prohibit the mining of uranium in Queensland and Western Australia.
For further information, please contact:
Mega Uranium Ltd. Mega Uranium Ltd.
VP Corporate and Legal Affairs
T: (416) 643-7630
Director of Corporate Communications
T: (416) 860-1717