Arizona Uranium Breccia Pipe District Property Acquisition, USA
- Property package acquired from Neutron Energy Inc., comprising:
- 16,100 acres of which 7,900 acres are in 386 Federal lode mining claims and 8,200 acres in 15 State of Arizona Mineral Exploration Permits
- Two confirmed breccia pipes and 63 breccia pipe targets
VANE is pleased to announce that its wholly-owned subsidiary, VANE Minerals (US) LLC, has entered into an exclusive agreement with Neutron Energy Inc. ("NEI") whereby VANE may acquire the uranium property assets of NEI located in the uranium breccia pipe district of northern Arizona. VANE is currently conducting due diligence to evaluate the exploration potential of the individual prospects. Prior to the expiry of the due diligence period on 1 September 2009, VANE will then confirm to NEI which parts of the property package it wishes to retain.
The property package consists of approximately 16,100 acres comprised of 7,900 acres in 386 Federal lode mining claims and 8,200 acres in 15 State of Arizona Mineral Exploration Permits. The majority of the properties (99%) are located in the "Area of Interest" of the VANE's joint venture with Uranium One Exploration U.S.A. Inc. ("U1JV") and will, therefore, be offered to the "U1JV".The package contains at least two confirmed breccia pipes and 63 breccia pipe targets.
As consideration for the acquisition, NEI is entitled to a maximum gross revenue royalty of 2 per cent. NEI has the option to convert its gross royalty into a 30% working interest at feasibility, for prospects other than the two confirmed breccia pipes by paying a "conversion fee" of 45% of the exploration expenditure by VANE and/or the U1JV to feasibility for the 30% interest.
Commenting today Steve Van Nort, CEO of VANE Minerals, said:
"The acquisition of the NEI breccia pipe property package further strengthens our already strong land position on the Arizona Strip by increasing our number of defined pipe targets and approximately doubling the size of the target portfolio. We remain committed to this district which is reported by the United States Geological Survey to hold a significant portion of the USA's estimated undiscovered uranium endowment, potentially 42%, and where the industry has established an excellent record of safe operations with minimal effect to the environment. We believe the district is of significant importance to the recently announced revival of the nuclear industry in the USA."