July 07, 2009 Universal Uranium To Acquire Nevada Gold Property
Vancouver, BC, July 7, 2009 - Universal Uranium Ltd. (TSX:V- UUL) ("Universal Uranium") announces that it has entered into an agreement with Nevada Mine Properties II, Inc ("NMP"), a private Nevada corporation, to acquire a 100% interest in NMP's Tact -- Buff property (the "Property") located in the prolific Battle Mountain Mining District, Nevada. The Property is comprised of 98 claims totalling 1760 acres and is situated in Humboldt County approximately 30 miles southeast of Winnemucca.
Property Details
The Property is located in Buffalo Valley approximately 5 miles southwest of Newmont Mining's Lone Tree gold mine Complex (2 million ounces mined) and 3 miles northwest of Newmont's Converse deposit (4.5 million ounce resource). Other nearby gold mines in operation include the Marigold Complex (over 4.25 million ounces) operated as a joint venture between Barrick Gold Corp. and Goldcorp Inc. (See map at www.universaluranium.com)
The project area contains host rocks identical to the above mentioned mines and previous work has outlined gold in outcrop, within soil grids, limited drilling programs.
Gold mineralization identified within the property boundary occurs in strongly stockworked-brecciated limonite shears and quartz veining in structurally prepared areas within the Havallah sediments and within a quartz monzonite intrusive. A soil sampling program spaced on 30 by 130 meters covers an area over one square mile. The soil grid contains large areas of +0.1 g/t gold. Numerous +1 g/t gold values up to 4.6 g/t have been identified. A shallow drilling program (<30 meters) tested various, easily accessible portions of the soil grid with results to 0.014 oz/ton Au over 15 meters. None of this work has been followed up leaving most +0.1 g/t gold anomalies untested.
"While Universal remains committed to prospecting Uranium properties, the identification of this gold opportunity proved to be too tempting to let pass. The property's data has been reviewed by two top geologists and both have given us favourable reports", says Ron Atlas, President of Universal. "We have retained Bernard Stannus, a mining engineer who has considerable gold experience and who also helped bring Inca Pacific's Magistral Copper Project in Peru to its bankable feasibility and permitting stage. Bernard has agreed to consult for Universal."
In consideration, Universal Uranium has agreed to pay US$7,500 upon execution of the agreement and a total of US $302,500 in Advanced Royalty Payments in the first 8 years with automatic extensions over the next 12 years. Universal Uranium reserves the right to purchase 100% ownership of the Property at anytime by paying US$2 million less any Advance Royalty Payments.
Other considerations include issuing a total of 500,000 Universal shares to NMP over a two year period and the option to buydown a 3% NSR to 1% for US$3 million.
Universal has sufficient cash to proceed with drilling and plans to apply for drill permits and mobilize drill crews as soon as possible to proceed with an initial drilling program of up to 12 holes.
Information with respect to the Tact - Buff properties contained in this press release is approved by Bert W. Jeffries, PGeo, qualified person required under National Instrument 43-101.
Universal Uranium Ltd. (TSX-V: UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favourable 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:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
May 13, 2009 Statement of Defence and Counterclaim Filed In Crosshair Action
Vancouver, British Columbia, May 13, 2009 -- Universal Uranium Ltd. (the "Company") announced that it has filed a Statement of Defence and Counterclaim in an action commenced by Crosshair Exploration & Mining Corp. ("Crosshair") in the B.C. Supreme Court. The Crosshair action seeks rescission of two agreements, one being a property purchase agreement under which Crosshair acquired the Company's mineral claims in the Central Mineral Belt in Labrador, and the other being a private placement agreement under which Crosshair purchased units of the Company.
The Company considers the Crosshair action to be without merit. The Company's Statement of Defence and Counterclaim denies that Crosshair is entitled to rescission of the two agreements and asserts that the Crosshair action was commenced for the purpose of artificially increasing the value of Crosshair's shares by halting the release from escrow of the Crosshair shares to which UUL is entitled under the property purchase agreement. The Statement of Defence and Counterclaim also asserts that the Crosshair action is an abuse of process and seeks damages for the loss of the Company's opportunity to market the Crosshair shares to which the Company is entitled.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board
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.
May 01, 2009 Action Against Universal Uranium
Vancouver, British Columbia, May 1, 2009 -- Universal Uranium Ltd. (the "Company") announced that it has been served with a Writ and Statement of Claim in an action commenced by Crosshair Exploration & Mining Corp. ("Crosshair") in the B.C. Supreme Court. The Crosshair action seeks rescission of a property purchase agreement dated July 29, 2008 under which Crosshair acquired the Company's interest in approximately 4,741 mineral claims situated in the Central Mineral Belt in Labrador. It also seeks rescission of a July 29, 2008 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. The action also claims certain ancillary relief.
Further information on the property purchase agreement and the private placement agreement is contained in the Company's press release issued July 30, 2008.
The Company considers the Crosshair action to be without merit and will vigorously defend this action. The Company also intends to file a counterclaim against Crosshair seeking damages and other relief.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board
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.
April 29, 2009 Results of Annual General Meeting
Vancouver, British Columbia, April 29, 2009 -- Universal Uranium Ltd. (the "Company") is pleased to announce that its shareholders have approved all resolutions presented to them at the annual general meeting of the Company held on April 29, 2009. The shareholders re-elected five directors to the board, Ronald Atlas (also Chairman of the Board & President), Steven Chan, Corry Silbernagel, John Hite and Richard Walters. The shareholders also reappointed De Visser Gray, Chartered Accountants, as the Company's auditors and ratified and approved the Company's 10% rolling stock option plan and ancillary matters thereto, including the re pricing of certain stock options to directors and officers as previously announced in the Company's press release of February 26, 2009.
The Company also announced that it has granted incentive stock options in the aggregate amount of 775,000 shares to directors, officers, consultant and employees of the Company at a price of $0.15 per share. The options are exercisable for a period of five years, ending on April 29, 2014, and are subject to the requirements of the TSX Venture Exchange.
The Company is also proposing the amendment of 1,150,000 warrants issued pursuant to its private placement completed last March 2008 (see press release dated March 20, 2008). Subject to regulatory approvals, the exercise price of the warrants will be amended from $0.45 per share to $0.15 per share. All other terms and conditions remain unchanged. There are no insiders among the outstanding warrant holders.
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.
February 26, 2009 Stock Options Amended
Vancouver, British Columbia, February 26, 2009-- Universal Uranium Ltd. announced that it has re-priced 3,420,000 stock options granted to directors, officers, employees and consultants, ranging in price from $0.20 to $0.71, to $0.15 per share. All other terms and conditions of the options remain unchanged.
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.
September 30, 2008 Universal Uranium Receives Preliminary Assessment On St. Georges Bay Property
Vancouver, British Columbia, September 30, 2008 - Universal Uranium Ltd. (TSX:V-UUL) (the "Company") is pleased to report that North Rim Exploration Ltd. has completed a Preliminary Resource Assessment Study (the "Study") on the Company's 100% owned St. Georges Subbasin Project, located in western Newfoundland.
The study concludes that the project warrants being advanced and recommends additional work to be conducted in the form of ground truthing, ground gravity surveys and possible drill testing based on gravity features. It also reports that the property not only has potash potential but also potential for uranium, coal and other base metals.
North Rim geologists will visit Pasadena, NL in late October in order to document the cores of the historical drill holes in the area and try to locate the coal occurrences that are in the historic data as being on the property.
Highlights of the Preliminary Assessment Report:
-The St. Georges Subbasin is an extension of the larger Carboniferous-age Maritime Basin that underlies most of Nova Scotia, New Brunswick and Prince Edward Island (See Figure 3 available at www.universaluranium.com). The evaporite-bearing formations in Newfoundland are believed to be similar in age to potash-producing formations in the Moncton Subbasin of New Brunswick, which is also part of the Maritime Basin. The potash mine in the Moncton Subbsain, the Sussex Mine, is currently operated by the Potash Corporation of Saskatchewan and produces approximately 800,000 tonnes of potash a day. This demonstrates that the company's claims cover an area with the geological potential to host a potash deposit (See Figure 3 www.universaluranium.com).
-Sylvinite and caranallite mineralization have been reported and confirmed from drill holes in the general St. Georges Subbasin of western Newfoundland. The closest drill hole to the Universal property is the St. Fintans occurrence which is located approximately 10 to 15 kilometers from the western boundary of the company's licenses and reported grades as high as 9.1% K2O. Both sylvite and carnallite were reported to be present (See Figure 1 www.universaluranium.com). The most extensive drilling was done at Fischells Brook which is located approximately 20km northeast from the Universal property and reported grades as high as 15.3% K20. The highest grade intersection in this area was 4.1m averaging 13.2% K2O and the thickest intersection was 7.8m of 7.95% K2O (See Figure 1). These observations indicate it is reasonable to expect the discovery of additional sylvinite and caranallite within the St. Georges Subbasin.
-The highest prospectivity for potash mineralization in the St. Georges Subbasin is coincident with the lower Codroy Group Sediments. This Codroy group is present on a substantial part of the Universal property. Further ground work on the licenses, specifically within the regions marked by the highlighted area on Figure 9, could result in the discovery of evaporite minerals that may include sylvinite and carnallite.
-The St. Georges Subbasin is a metallogenically interesting area with regional indications of several other mineral commodities (Figure 7 www.universaluranium.com), including coal, uranium and base metals. There are currently reports of coal beds (Figure 9) encountered in the vicinity of the Universal licenses so particular attention will be paid to identifying the potential presence of a coal resource. The potential for economic concentrations of other minerals will also not be discounted during the work program as there are reports indicating base metal potential in the Codroy-Anguille contact area (Figure 9).
The Study, dated September 15th, 2008 and entitled "Bay St. Georges Subbasin Western Newfoundland - Preliminary Resource Assessment Study" will be filed on www.sedar.com and available for viewing on the company's website www.universaluranium.com. The study was prepared by Sandra J. Foster, P.Geo., and Stephen Halabura, P. Geo. of North Rim Exploration Limited (NREL), a geological consulting company based in Saskatoon, Saskatchewan. Mr. Halabura and Ms. Foster are both independent qualified persons as defined by NI 43-101.
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:
Taylor Little, Investor Relations
Telephone: (604) 662-3903
Email:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
July 30, 2008 Universal Announces Closing Of Sale Of Labrador Uranium Property To Crosshair
Vancouver, British Columbia, July 30, 2008-- Universal Uranium Ltd. (TSX-V: UUL) is pleased to announce that it has closed on the agreement with Crosshair Exploration ("Crosshair") to acquire all of Universal's 60% interest in its Central Mineral Belt (CMB), Labrador, uranium project, consisting of approximately 4,737 claims and including the Two Time uranium deposit, which sits outside the Labrador Inuit Land area.
The Two Time Zone is the most advanced prospect within Universal's 1,184 square kilometre land holdings in the CMB and is a joint venture partnership with Silver Spruce Resources ("Silver Spruce"), whereby Silver Spruce retains a 40% ownership. Crosshair will be the operator of the project. The Two Time Zone has an existing NI 43-101 compliant indicated resource of 2.33 million pounds of uranium (U3O8) (1.82 million tonnes grading 0.058% U3O8) and an additional inferred resource of 3.73 million pounds of U3O8 (3.16 million tonnes grading 0.053% U3O8).
"The sale of this property to Crosshair will prove extremely beneficial to both parties. The shares of Crosshair received by Universal will give us a large position in the future of the entire property. Crosshair is better equipped to deal with the complexities of developing this property and has the geological staff and expertise to advance this discovery to production", says Ron Atlas, President of Universal. "The 2% NSR allows Universal to participate directly in the profit potential of the property. The private placement made in Universal by Crosshair will allow Universal to concentrate its efforts on its Potash property in Saskatchewan, and on the acquisition of additional attractive mineral prospects currently under review."
"We are pleased that the acquisition is complete and we look forward to expanding the Two Time Zone and also advancing a number of exciting discoveries in the area to the drill ready stage", says Mark Morabito, CEO of Crosshair. "Together with our C Zone -- Armstrong corridor, Crosshair now controls the only two 43-101 uranium deposits in the western portion of the CMB and both are outside the Labrador Inuit Land area."
The Two Time Zone has a current strike length of 475 metres (m) and remains open along strike and to depth. The Two Time Zone is located approximately 17 km northwest of Crosshair's C Zone. Significant uranium drill intercepts include:
0.052% U3O8 over 107 m including
0.11% U3O8 over 30 m in CMB-07-6
0.042% U3O8 over 109 m including
0.10% U3O8 over 32 m in CMB-07-14
The complete resource estimate can be found in the NI 43-101 report entitled Technical Report on the CMBNW Property, Labrador, Canada dated June 12, 2008, as filed on SEDAR on June 13, 2008 by both Universal and Silver Spruce.
Acquisition Details
As consideration for Universal's interest in the Property, Crosshair paid to Universal CDN$500,000 and issued 10,000,000 common shares and 7,500,000 warrants. Each warrant entitles Universal to purchase an additional common share in the capital of Crosshair at CDN$1.00 per share for a period of three years from Closing subject to early expiry in the event that the average trading price of Crosshair's common shares exceeds CDN$2.00 for a period of 20 days while the warrants are outstanding. The securities issued to Universal are subject to escrow for two years following the Closing, to be released in equal tranches in three month intervals. Universal will grant Crosshair's management a voting proxy over any Crosshair shares it holds or acquires on exercise of the warrants. These escrow and voting provisions will expire if Universal distributes the securities to its shareholders. Universal will retain a 2% net smelter return royalty on its 60% interest in the Property, 0.5% of which may be purchased by Crosshair for CDN$1,000,000.
Crosshair has also purchased, by way of private placement, 2,222,222 units of Universal at a price of CDN$0.45 per unit. Each unit consists of one common share of Universal and one share purchase warrant entitling Crosshair to purchase an additional common share of Universal at a price of CDN$0.65 per Universal Warrant for a period of 24 months.
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: For further information contact:
(signed) "Ronald Atlas," President & Chairman of the Board
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
June 23, 2008 Universal Uranium Engages North Rim Exploration Ltd. For Study Of Potash Potential Of St. George'S Bay Mineral Property
Vancouver, British Columbia, June 23, 2008-- Universal Uranium Ltd. (TSX-V: UUL) is pleased to announce that it has contracted North Rim Exploration Ltd. (North Rim) of Saskatoon, Saskatchewan to provide an assessment as to the potential for discovering potash on the company's newly acquired claims in the St. Georges Bay Basin of Western Newfoundland.
North Rim Exploration Ltd. is a geosciences and engineering consulting firm that has provided geoscience support and service to the potash exploration and mining industry in western Canada since 1989. North Rim Exploration has provided its expertise to companies mining and/or seeking to mine potash in Saskatchewan and Manitoba, including Potash Corporation of Saskatchewan, Agrium Inc., Anglo Potash Inc., BHP Billiton, Potash One, Potash North and others. The company has undertaken over 80 studies in the area of potash geology and exploration during this period.
North Rim will begin its study of the potash potential of the St. George's Bay property immediately and will have it completed by late July 2008. The work will consist of compiling and evaluating all available historical archive data, determining the likelihood of encountering potash within the property claims, a site visit, and a proposed exploration program, should this be warranted, which will include recommendations as to further geological and geophysical studies.
Reporting of the results of the preliminary assessment will follow the Form F-1 portion of the National Instrument 43-101 technical report and will be written by Mr. Stephen P. Halabura, President and CEO of NREL and an Independent Qualified Person (IQP) as defined by National Instrument 43-101.
Ron Atlas, President and CEO of Universal Uranium Ltd. states, "The Company is looking forward to working with North Rim Exploration Ltd. to further project development on the newly acquired property. The company feels the project has significant potential and looks forward to working with a company with extensive expertise and success in the potash industry."
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: For further information contact:
(signed) "Ronald Atlas," President & Chairman of the Board
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
May 23, 2008 Universal Uranium Enters into Agreement to Sell Central Mineral Belt Properties to Crosshair Exploration
News Release 08-14
Vancouver, British Columbia, May 23, 2008 - Universal Uranium Ltd. ("Universal") (TSX-V: UUL) is pleased to announce that it has entered into an agreement with Crosshair Exploration and Mining Corp. (AMEX: CXZ) (TSX: CXX) under which Crosshair will acquire all of Universal's interest in the Central Mineral Belt (CMB) of Labrador, which totals approximately 4,737 claims. Universal and its 40% partner Silver Spruce Resources issued news releases on April 29, 2008, disclosing that Scott Wilson Roscoe Postle Associates had prepared a NI 43-101 Mineral Resource Estimate for the Two Time Zone on the Property estimating an indicated resource of 2.33 million pounds of uranium (U3O8) and an additional inferred resource of 3.73 million pounds of U3O8 (see below for tonnage and grade details).
"This transaction brings great value to Universal shareholders." says Ron Atlas, CEO of Universal. "We feel that this acquisition expands our shareholders position in the Central Mineral Belt Labrador. Our shareholders will now have an interest in the only two mineral resources in the western portion of the CMB, the Two Time Zone and the Crosshair C Zone. In addition, the cash infusion into the company will allow us to develop our newly acquired potash property and our Lisbon Valley uranium project."
Closing is expected to be completed on June 16, 2008 or such other date as may be mutually agreed, but no later than July 31, 2008. Closing is conditional upon both Universal and Crosshair obtaining regulatory approval to the transaction and to the satisfactory due diligence review by each of Universal and Crosshair.
Acquisition Details
As consideration for Universal's interest in the Property, Crosshair will pay to Universal CDN$500,000 and issue 10,000,000 common shares and 7,500,000 warrants. Each warrant will entitle Universal to purchase an additional common share in the capital of Crosshair at CDN$1.00 per share for a period of three years from Closing subject to early expiry in the event that the average trading price of Crosshair's common shares exceeds CDN$2.00 for a period of 20 days while the warrants are outstanding. The securities issued to Universal will be subject to escrow for two years following the Closing, to be released in equal tranches in three month intervals. Universal will grant Crosshair's management a voting proxy over any Crosshair shares it holds or acquires on exercise of the warrants while such shares are in escrow. These escrow and voting provisions will expire if Universal distributes the securities to its shareholders. Universal will retain a 2% net smelter return royalty on its 60% interest in the Property, 0.5% of which may be purchased by Crosshair for CDN$1,000,000.
Crosshair will also purchase 4,444,444 units of Universal's non-brokered private placement of 7,000,000 units announced on May 20, 2008 at a price of CDN$0.45 per unit. Each unit will consist of one common share of Universal and one share purchase warrant entitling Crosshair to purchase an additional common share of Universal at a price of CDN$0.65 per Universal Warrant for a period of 24 months. Closing of the private placement is not conditional upon closing of the acquisition of the claims.
Property Details
The Two Time Zone is the most advanced prospect within Universal's 1,184 square kilometre land holdings in the CMB. This Zone, and the majority of Universal's ground, is located north-west of Crosshair's current CMB Project. The current land position map is posted on the Company website at: www.universaluranium.com. The Two Time Zone falls outside of Labrador Inuit Lands and is not directly impacted by the Nunatsiavut Government's recent decision to place a three year moratorium on uranium mining within their self-governed Labrador Inuit Lands. This moratorium was put in place in order to allow the Nunatsiavut Government time to establish a lands administration system and to develop an Environmental Assessment Act and environmental protection legislation.
The Two Time Zone was first discovered in September 2006 following an airborne radiometric survey. The Zone has a current strike length of 475 metres (m) and remains open along strike and to depth. Mineralization at the Two Time Zone is hosted in an altered, brecciated and fractured, felsic intrusive, which carries extensive hematite, chlorite, carbonate and albite alteration. The zone is similar to large, iron oxide copper gold (IOCG) style, uranium rich, hematite breccia deposits such as the Olympic Dam deposit in Australia, the world's largest uranium deposit.
Significant uranium drill intercepts include:
0.052% U3O8 over 107 m including
0.11% U3O8 over 30 m in CMB-07-6
0.042% U3O8 over 109 m including
0.10% U3O8 over 32 m in CMB-07-14
The Two Time Zone drill hole database includes 41 diamond holes totaling 11,254 meteres, plus five surface trenches. The NI 43-101 Mineral Resources are contained within eight separate zones. At a cut-off grade of 0.03% U3O8, indicated resources are estimated to total 1.82 million tonnes grading 0.058% U3O8 containing 2.33 million pounds U3O8. Inferred resources are estimated to total 3.16 million tonnes grading 0.053% U3O8 containing 3.73 million pounds U3O8. This estimate is based on drill hole data available as of February 4, 2008.
In addition to the Two Time Zone, the airborne radiometric survey identified many other high priority targets, several of which have been followed up by prospecting. One such zone is the Firestone Showing, which is located 8 km southeast of the Two Time Zone. This mineralized area consists of a 250 m by 600 m section of strong, pervasively altered granitic rocks, which gave off-scale scintillometer readings.
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: For further information contact:
(signed) "Ronald Atlas," President & Chairman of the Board
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
May 20, 2008 Universal Uranium Ltd Acquires Strategic Potash Property and Announces $3.15 Million Financing
News Release 08-13
Vancouver, British Columbia, May 20, 2008 - Universal Uranium Ltd. (the "Company") (TSX-V: UUL) is pleased to announce that it has entered into an agreement, subject to regulatory approval, to acquire a 100% interest in 816 claims totaling 204 sq km (the "Property") located in the St.George's Bay Basin in western Newfoundland, from Alpha Uranium Resources Inc.
The St.George's Basin is geologically analogous to the Moncton subbasin in New Brunswick, which is Canada's second major potash mining district. The Property is bordering properties currently held by Altius Resources Inc., Sprott Resource Corp. and Vulcan Minerals (view map at www.universaluranium.com).
Previous drilling in several areas of the St. George's Basin have revealed large thicknesses of evaporitic rocks hosting significant beds of potash and carnallite. Universal plans to compile and re-interpret the historical data on the property in preparation for undertaking additional geophysical surveys on the newly acquired ground. Subsequent drilling will begin on the most favorable targets during the upcoming field season.
Under the terms of the Agreement, the Company will acquire a 100% interest in the Property by paying on closing; (i) CDN$40,000 in cash and, (ii) 500,000 previously unissued common shares of the company. The deemed price of these shares will be the closing price of the company's shares on the day of this news release. A finder's fee will apply in this transaction.
Ron Atlas, President and CEO of Universal Uranium, states: "Universal has, up till now, acquired and developed only uranium properties, and will continue to develop those assets. However, we feel that the reasons for acquiring such a strategic potash property, were simply too compelling."
In conjunction with this acquisition, the Company has arranged a non-brokered private placement consisting of 7,000,000 units at $0.45, for total proceeds of $3.15 million. Each unit consists of one common share and one whole transferable share purchase warrant. Each warrant is convertible into one common share at a price of $0.65 for a period of twenty-four (24) months. The proceeds from this financing will be used for working capital, development of the newly acquired property and development of our existing uranium projects. A finder's fee will apply in this private placement in accordance with the policies of the TSX Venture Exchange. The financing is subject to regulatory acceptance.
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:
Taylor Little, Investor Relations
