KELOWNA, BRITISH COLUMBIA--(Marketwired - Oct. 15, 2013) - FISSION URANIUM CORP. ("Fission" or "the Company") (TSX VENTURE:FCU)(OTCQX:FCUUF)(FRANKFURT:2FU) and Brades Resource Corp. ("Brades") (TSX VENTURE:BRA) jointly announce that they have signed a Letter of Intent (LOI) to enter into a property option agreement whereby Brades can earn up to a 50% interest in Fission's Clearwater West project in the southwestern Athabasca Basin region, Saskatchewan.
Clearwater West is considered by Fission to be an important holding, comprising 3 contiguous claims totalling 11,835 hectares in the south-west area of the Athabasca Basin immediately South of and adjacent to Fission's joint venture Patterson Lake South project ("PLS").
Dev Randhawa, Chairman and CEO of Fission, commented,
"We are pleased to have reached this agreement with Brades which gives their company and its shareholders the opportunity to partner with one of the top technical teams in the uranium exploration sector. It also gives them access to our patent-pending airborne survey technology that led to the PLS discovery. We are looking forward to working with them as we explore this prospective property."
Proposed Acquisition of Clearwater West Project
Under the terms of the Option Agreement, 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 (per Table 1) on or before October 14, 2016 and issuing to Fission that number of common shares in the capital stock of Brades on closing that comprises 9.9% of the then issued common shares of Brades.
| 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 Fission will retain a 2% Net Smelter Royalty on exercise of the option. Fission will be the operator of the project.
The parties' obligations to close the Option Agreement are subject to the satisfaction of the usual conditions precedent including:
(a) the receipt of all necessary approvals of the Exchange and all other regulatory authorities and third parties to the option; and
(b) the completion of formal documentation acceptable to the parties.
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. Brades considers the recent discovery of high-grade uranium in the southwestern region of the Athabasca Basin to demonstrate the 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 northidentify 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.
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 an airborne EM and magnetics survey and a high resolution radiometric survey utilizing Fission's patent pending airborne radiometric survey equipment and methodology for finding at surface radiometric occurrences. It is anticipated that local ground geophysics and geochemical surveys (including radon), will be conducted during the winter to assist in developing high priority drill targets.
Qualified Person
Harrison Cookenboo, Ph.D. and P.Geo., is a director of Brades, and is the Qualified Person who has reviewed the geological data summarized in this news release on behalf of Brades Resource Corp.
ON BEHALF OF THE BOARD (Fission Uranium Corp.)
Dev Randhawa, Chairman and CEO
ON BEHALF OF THE BOARD (Brades Resource Corp.)
Brian Biles, President 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 of the Clearwater West property to host uranium mineralization 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 Brades 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
Brades Resource Corp.
Brian Biles
President and CEO
604 329 4421
bribiles@yahoo.ca