Business & Finance
Business and Finance
Business and Finance
Tue, January 13, 2009 Powertech Uranium Corp.: Powertech Acquires Additional Land at Dewey-Burdock
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 13, 2009) - POWERTECH URANIUM CORP. ("Powertech" or the "Company") (TSX:PWE)(FRANKFURT:P8A) is pleased to announce that, through its wholly owned subsidiary Powertech (USA) Inc., it has entered into an Agreement ("Agreement") with Neutron Energy Inc. ("Neutron") to exchange some of the Company's non-core properties in New Mexico, Wyoming, and South Dakota for acreage located within and adjacent to Powertech's Dewey-Burdock project in South Dakota.
The acreage to be acquired from Neutron by Powertech consists of approximately 1,620 acres of claims and leases within the Company's proposed permit area and an additional 4,380 acres of prospective claims and leases outside of Powertech's initial proposed permit area but adjacent to the Dewey-Burdock project. This acreage has historical drilling and adds future development potential to the project.
Initial reviews of the historical exploration data owned by Powertech and Neutron indicate that approximately 800,000 pounds of U3O8 resources at a 0.5 GT cutoff may be attributed to the Neutron properties that are within Powertech's proposed permit area. The uranium resources are categorized as "historical estimates" and have not been reviewed or verified under National Instrument 43-101. However, the Company believes that the properties have the potential to add significant future development opportunities to the Dewey-Burdock Project. The historical exploration data was developed by the Tennessee Valley Authority (TVA) which conducted a broad exploration program in the area and retained property in the area through 1984, at which time they relinquished holdings due to their exit from the uranium exploration business.
The terms of the Agreement provide for the retention of a 30% net proceeds interest by Neutron from future production on the acquired acreage and Powertech will be the operator. As additional consideration, Powertech has agreed to transfer to Neutron approximately 360 acres of claims and leases, along with associated historical drilling data, in South Dakota. This acreage is located several miles away from Powertech's Dewey-Burdock project area and is surrounded by properties staked by Neutron. Powertech will also transfer approximately 4,056 acres of claims in the Ambrosia Lake District of New Mexico and approximately 1,656 acres of claims and leases in the Shirley Basin of Wyoming. Each of these properties will add prospective value to Neutron's portfolio of properties in areas where Neutron has significant interests. For Powertech, while each block of claims to be transferred is prospective, the Company has no historical data and further advancement would require significant expenditure for exploration drilling.
Richard Clement, President of Powertech says "This exchange of properties between Powertech and Neutron will assist both companies in achieving their goals of consolidating key acreage that will strengthen their strategic positions at each of their priority uranium development projects. Our acquisition of these key claims and leases, along with the recent acquisition of claims from Bayswater Uranium Corp., will bring Powertech's land position to approximately 18,000 acres of mineral interests and surface rights at the Dewey-Burdock project."
This news release has been reviewed and approved by Mr. Clement, President and CEO of Powertech, under whose direction the company's operations are being carried out. Mr. Clement, P.G., MSc. is a Qualified Person as defined by National Instrument 43-101.
A qualified person (as that term is defined in National Instrument 43-101) has not done sufficient work to classify the historical estimates discussed above as current mineral resources or mineral reserves. Powertech is not treating the historical estimates as current mineral resources or mineral reserves as defined in National Instrument 43-101 and the historical estimates should not be relied upon.
About Powertech Uranium Corp.
Powertech Uranium Corp. is a Denver-based mineral exploration and development company that holds the Dewey-Burdock Uranium Deposit in South Dakota, the Centennial Project in Colorado and the Dewey Terrace and Aladdin Projects in Wyoming. The Company's key personnel have over 200 years of experience in the uranium industry throughout the United States, and have permitted more than a dozen in-situ operations for production. For more information, please visit [ http://www.powertechuranium.com/ ].
POWERTECH URANIUM CORP.
Richard F. Clement Jr., President & CEO
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's potential uranium resources and project development and permitting activities at the Dewey Burdock project. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) an extended downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with uranium exploration, including the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents or other risks of the mining industry, (3) a decrease in the demand for and/or a decrease in the price of uranium, (4) an increase in the operating costs associated with the extraction and processing of the uranium, (5) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems, (6) the risk that the Company does not execute its business plan, (7) inability to retain key employees, (8) inability to finance operations and growth, (9) any negative change in the law, regulatory or political environment which would negatively affect the Company's ability to obtain all necessary environmental and regulatory approvals, (9) an increase in the number of competitors with larger resources, and (10) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators at [ www.sedar.com ].
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
