LAS VEGAS, Dec. 18, 2006 (PRIME NEWSWIRE) -- CanAm Uranium Corp. ("CanAm Uranium") (OTCBB:CAUI) a Nevada incorporated junior resource company announced entering into a property option agreement on November 29, 2006, with Northwind Resources Inc. ("Northwind"), pursuant to which CanAm acquired an option to purchase certain mining claims, entitled the "Wheeler-Beckett" claims.
The Wheeler-Beckett claims are leases to mine mineralized material, granted by the Province of Saskatchewan, Canada, and provide the holder of the leases the exclusive right to explore for and develop mineralized material in 11 contiguous claims, totaling 51,100 hectares of real property, located on the eastern edge of the Athabasca Basin, Province of Saskatchewan, Canada.
To exercise its option to acquire the leases for the Wheeler-Beckett claims, CanAm must pay CDN $250,000 and issue 1,000,000 shares of common stock to Northwind. The payment schedule under the Property Option Agreement provides for an initial payment of CDN $150,000, and 500,000 shares of the CanAm's common stock, which payment was made to Northwind on November 29 2006. To complete the exercise of its option, CanAm must pay to Northwind CDN $100,000 and 500,000 shares of common stock not later than the first year anniversary date of the date of the Property Option Agreement. Additionally, the Property Option Agreement provides, among other things, that CanAm pay a royalty equal to two and one-half percent (2.5%) of net returns from future production, four-fifths (4/5) of such 2.5% of which CanAm may purchase for CDN $1,000,000.
The claims were optioned due to their proximity to large, high-grade mines and their potential to host similar mineralization such as the Eagle Point Mine. The Property is located on the eastern edge of the Athabasca Basin approximately 40 kilometers from the McArthur River Mine (Cameco/Cogema), the largest, high-grade uranium mine in the World (reserves of 389.1 million lbs with an average grade of 24.3% U3O8 and producing 18.7 million lbs per annum).
Other Information
-- There is gravel road access to the property via the Great Bear
Highway
-- Close proximity to the mills in the eastern side of the Basin
-- The Hook Lake showing on JNR Resources' ground located
approximately 6 kilometers from the Claims tested 48% U3O8
-- The Company can target shallow drilling (200m). Drilling inside
the Athabasca Basin is as deep as 500-700m and very expensive.
-- Favorable environmental situation (i.e. less water than inside
the Basin)
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CanAm's website does not constitute a part of this release.
CanAm Uranium Corp. is a Nevada incorporated junior resource company with a corporate objective focused on the strategic acquisition and development of exploration properties in well-known prolific mining areas, especially known for Uranium, of Canada, Southern Africa, Australia and the United States. http://www.CanAmUranium.com