KELOWNA, BRITISH COLUMBIA--(Marketwired - Nov. 28, 2013) - FISSION URANIUM CORP. (TSX VENTURE:FCU)(OTCQX:FCUUF)(FRANKFURT:2FU) ("Fission" or "the Company") the Operator, and Brades Resource Corp. are pleased to announce receipt of TSX approval for filing of the Clearwater West project option agreement, whereby Brades has the option to earn up to a 50% interest in the property (the "Option"). In consideration, Brades will issue 1,741,377 common shares to Fission on closing and incur $5 million in exploration expenditures over a 3 year period.
Fission's experienced and successful management and technical team, with a track record of two major high-grade uranium discoveries in the Athabasca Basin region in the past 3 years (Waterbury Lake project and the PLS project), will operate and manage Clearwater West. Fission currently holds a 100% interest in Clearwater West.
The $0.7 million budgeted work program for year 1 will consist of a property scale airborne radiometric survey using Fission's patent pending "System And Method For Aerial Surveying Or Mapping Of Radioactive Deposits" as well as an airborne EM geophysical survey. It is anticipated that radon surveys designed to assist in the detection of subsurface uranium occurrences will be conducted in certain areas to assist in prioritizing drill targets.
Dev Randhawa, Chairman and CEO of Fission Uranium, commented,
"This is a great opportunity for both companies. Clearwater West is a highly prospective property with favorable geology and a superb location right next to our PLS project. With two major discoveries in three years, our technical team has a tremendous track record in the Athabasca Basin and we are looking forward to be working with the Brades management team as we move forward."
Proposed Earn-In of Clearwater West Project
Under the terms of the Option, Brades has agreed, subject to the satisfaction of certain conditions precedent including the receipt of TSX Venture Exchange (the "Exchange") acceptance, to acquire up to a 50% interest in Clearwater West by incurring $5,000,000 of staged exploration expenditures on or before October 10, 2016, as follows:
Table 1: Staged Exploration Expenditures
| Term | Interest Earned | Work Obligation |
|---|---|---|
| 12 Months | $700,000 | |
| 24 Months | 20% | $2,000,000 |
| 36 months | 30% | $2,300,000 |
| TOTAL | 50% | $5,000,000 |
In addition Brades will grant to Fission a 2% Net Smelter Royalty on exercise of the option.
Summary of the Clearwater West Project
The Athabasca Basin region hosts the world's richest uranium deposits, with a well-established and politically stable, uranium exploration and mining sector. Fission considers the recent discovery of high-grade uranium in the southwestern region of the Athabasca Basin as a demonstration of the possible prospective merit of this under-explored area.
Clearwater West lies adjacent to the south of Fission's Patterson Lake South (PLS) joint venture property (Fission 50%, Alpha Minerals 50%), where recent drill results located 13 km to the north identify discovered high grade uranium in bedrock in 5 separate pods. The best drill hole intersection to date at the PLS discovery is 9.08% U3O8over 54.5 m, including a higher grade interval of 21.76% U3O8 over 21.5 m (PLS13-075; see Fission Energy Corp. news release dated September 04, 2013).
Clearwater West is an early stage exploration project prospective for hosting high-grade uranium mineralization. Such mineralization is structurally controlled and typically associated with basement graphitic shear zones within clay altered metasedimentary basement lithologies. These features have unique characteristics that can be identified by various geophysical surveys. The property covers historic airborne EM anomalies, which could be the extensions of the EM conductors identified on the PLS property immediately to the north.
Clearwater West occurs within a large basin scale NE trending gravity low structural corridor that also incorporates the adjacent PLS property. The former Cluff Lake mine (>60M lbs U3O8 produced) and the UEX-Areva Shea Creek deposits (82 km and 66 km to the north respectively) lie along the western margin of this structural feature. The recently discovered high-grade uranium mineralization found at PLS located 13 km to the north, also lies within this structural corridor.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43- 101 and reviewed on behalf of the company by Ross McElroy, P.Geol. President and COO for Fission Uranium Corp., a qualified person.
About Fission Uranium Corp.
Fission Uranium Corp. is a Canadian based resource company specializing in the strategic acquisition, exploration and development of uranium properties and is headquartered in Kelowna, British Columbia. Common Shares are listed on the TSX Venture Exchange under the symbol "FCU" and trade on the OTCQX marketplace in the U.S. under the symbol "FCUUF."
ON BEHALF OF THE BOARD
Dev Randhawa, Chairmen and CEO
Cautionary Statement: Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to". Forward looking statements contained in this press release may include statements regarding potential spin-out and listing of Fission Uranium and the future operating or financial performance of Fission and Fission Uranium which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company and Fission Uranium disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Fission Uranium Corp.
Rich Matthews
Investor Relations
TF: 877-868-8140
rich@fissionuranium.com
www.fissionuranium.com