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| |   April 28, 2010
Universal Uranium and Crosshair Exploration Settle Action
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| | Vancouver, British Columbia, April 28, 2010 -- Universal Uranium Ltd. (TSX: V- UUL) (the "Company") is pleased to announce that the action commenced by Crosshair Exploration & Mining Corp. ("Crosshair") in the B.C. Supreme Court in April, 2009 has been settled. The Crosshair action sought rescission of two agreements, one being a property purchase agreement under which Crosshair acquired Universal's mineral claims in the Central Mineral Belt in Labrador, and the other being a private placement agreement under which Crosshair purchased 2,222,222 units of the Company, each consisting of one common share and one common share purchase warrant. At the time the Crosshair action was commenced, Crosshair also caused the escrow agent to halt the release of Crosshair shares and warrants that formed part of the consideration for Universal's Labrador mineral claims and that had been placed in escrow pursuant to the property purchase agreement.
In May, 2009, Universal filed a Statement of Defence and Counterclaim denying that Crosshair was entitled to rescission of the two agreements and asserting that the Crosshair action was an abuse of process. The Statement of Defence and Counterclaim also sought damages for the loss of the Company's opportunity to market the Crosshair shares to which Universal was entitled.
In August, 2009, Universal applied for an injunction directing the escrow agent to release the Crosshair shares and warrants from escrow. In a judgement rendered on March 16, 2010, the B.C. Supreme Court granted the injunction sought by Universal and directed the escrow agent to release to Universal the shares and warrants due to the Company under the escrow agreement.
The settlement agreement requires the parties to file a consent dismissal order dismissing both the Crosshair claim and Universal's counterclaim on a without costs basis. The settlement agreement also provides for a release by each party of all claims and causes of action it may have against the other party resulting from any matters existing up to the present time with respect to the action.
The settlement agreement further provides for Crosshair to enter into a voting trust agreement pursuant to which Crosshair will, for a period of 36 months, either abstain from voting its shares in Universal at shareholder meetings or will vote its shares in favour of the proposals of Universal's management. As at the date of the settlement, Crosshair held 2,222,222 common shares of the Company and 2,222,222 warrants to purchase common shares of the Company.
Universal Uranium Ltd. (TSX-V: UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable geo-political climates. The company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas"
President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour. |
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| | You can view the Next News Releases item: Tue May 4, 2010, Universal Uranium JV's Property Next to White Gold in Yukon
You can view the Previous News Releases item: Wed Mar 17, 2010, Court Orders Escrow Release in Crosshair Action
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