LAS VEGAS, May 31, 2007 (PRIME NEWSWIRE) -- CanAm Uranium Corp. (OTCBB:CAUI) ("CanAm" or the "Company") announced today that it has acquired an option to own 100% of the Reilly Uranium Property in the Sault St. Marie District of Ontario. The acquisition expands CanAm Uranium Corp's property holdings to over 159,000 acres of Uranium claims collectively.
The Reilly Uranium Property is located in the Mining Division of Sault St Marie Ontario in the Reilly Mining District, consisting of 23 contiguous mining claims totaling 5,120 hectares total or just over 12,650 acres. The Sault District forms the western extension of the region that include the Elliot Lake mining camp which was once known as "the uranium capital of the world" and has produced more than 270 million pounds of U3O8 from strata-bound deposits that demonstrate remarkable consistency over extensive areas. CanAm has an aggressive acquisition strategy for projects in areas of known uranium mineralization, especially in geological environments similar to past producing mines.
"The uranium market is currently experiencing unprecedented price gains due to surging global demand and increasingly uncertain supply, rising from a long-term base of roughly US$10 per pound, a level seen earlier this decade, to a recent high of US$125 per pound," said Dr Michael Hitch, Chief Geoscientist. "Many market analysts anticipate sustained strength in the uranium price for years to come".
The terms of the transaction include the option to purchase 100% of the property by the staged issuance of 80,000 CanAm common shares and $110,000 in cash payments in Canadian dollars. The underlying vendor retains a 2% NSR royalty of which 1% can be bought back by the Company for $1 million and the first right of refusal for the remaining 1%. The payment schedule is as follows, an "Initial Payment" of $30,000 on signing of this Option Agreement, an additional $10,000 on the first anniversary date of the Option Agreement, an additional $15,000 on the second anniversary date of the Option Agreement; an additional $20,000 on the third anniversary date of the Option Agreement; and, a final payment of an additional $35,000 on the fourth anniversary date of the Option Agreement. Issue to the Owners a total of 80,000 common 144 shares in the capital stock of CanAm for the grant of the Mineral Claims according to the following schedule, 20,000 common shares to the Owner within 10 days of the approval of the terms of this Option Agreement; 20,000 additional common shares on the first anniversary date of the Option Agreement; 20,000 additional common shares on the second anniversary date of the Option Agreement; and, 20,000 additional common on the third anniversary date of the Option Agreement.
Forward-Looking Statements
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", "could" 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.
About Us
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. CanAm Uranium Corp has optioned over 159,000 acres of claims collectively within the Saskatchewan Athabasca Basin, Ontario and British Columbia, with significant interest in prolific Uranium mining areas. http://www.CanAmUranium.com.