Mesa Signs Letter of Intent to Acquire Potash Project
August 25 2010 - 1:00PM
Marketwired
Mesa Uranium Corp. (TSX VENTURE: MSA)(PINK SHEETS: MSAJF) is
pleased to announce that it has signed a letter of intent to
acquire the Pine Valley Potash Project located in southwestern
Utah. The project totals 5,227 acres consisting of State of Utah
Leases and Federal Potash Prospecting Permits.
The deposit has an in-situ mineral inventory (non NI 43-101
compliant) of 82.7 million tons averaging 35.5% alunite (19.5
million tons indicated and 63.2 million tons inferred). This
resource is historical in nature and was calculated using US Bureau
of Mines protocols which was the industry standard prior to NI
43-101 standards. Investors are cautioned not to use this
information in making investment decisions.
The commercial products from alunite are potash, as sulfate of
potassium ("SOP"), sulfuric acid and alumina. The resource could
theoretically support an operation producing 104,000 tons of SOP,
200,000 tons of alumina and 184,000 tons of sulfuric acid per year
for more than 25 years. The deposit is shallow and would be mined
by low-cost surface mining methods. The area is accessed by well
maintained gravel roads, supports year round work and is 15 miles
from a main line siding of the Union Pacific Railroad.
Under the letter of intent, Mesa will acquire a 100% interest in
the project by paying the owner $25,000 upon signing a definitive
agreement, $25,000 and 800,000 Mesa shares on January 1, 2011,
thereafter payments of $10,000 annually. The owner will retain a 1%
NSR royalty which Mesa has the option to purchase one-half for US
$500,000. Closing of the transaction is expected on or before
October 4, 2010. The transaction is subject to completion of final
due diligence by Mesa, execution of a binding definitive agreement
and regulatory approval.
About Mesa Uranium
Mesa is exploring a portfolio of premier lithium, potash and
uranium properties in the United States where it controls
significant land holdings. All projects are within proven mining
districts with excellent access and infrastructure. Mesa currently
has 10,945,376 shares issued and outstanding, 12,476,210 shares on
a fully-diluted basis. For further information please visit our
website at www.mesauranium.com.
ON BEHALF OF THE BOARD
MESA URANIUM CORP.
Foster Wilson, President and CEO
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, including the likelihood of
commercial mining and possible future financings are
forward-looking statements. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include unsuccessful exploration
results, changes in metals prices, changes in the availability of
funding for mineral exploration, unanticipated changes in key
management personnel and general economic conditions. Mining is an
inherently risky business. Accordingly the actual events may differ
materially from those projected in the forward-looking statements.
For more information on the Company and the risks and challenges of
its business, investors should review the Company's annual filings
that are available at www.sedar.com.
The TSX Venture Exchange has neither approved nor disapproved of
the contents of this news release.
Contacts: Mesa Uranium Corp. Foster Wilson 1-775-771-5219
www.mesauranium.com
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