Mesa Uranium Signs Definitive Agreement on the Holbrook Potash Project
September 02 2010 - 11:49AM
Marketwired
Mesa Uranium Corp. (TSX VENTURE: MSA)(PINK SHEETS: MSAJF) is
pleased to announce that it has signed a Mineral Property Option
Agreement with Passport Potash on the Holbrook Potash project. The
project consists of Arizona State Land Department exploration
leases covering 1,950 acres and is 100% wholly-owned by Mesa.
Under the agreement, Mesa will receive 500,000 shares of PPI,
$20,000 in cash and a 2% NSR subject to a buyback for $300,000. The
transaction will be subject to approval by the TSX Venture
Exchange.
A. Passport Potash has the right to acquire 75% interest by performing the
following:
I. Issuing 500,000 shares upon the signing of the forthcoming agreement,
that each share certificate shall imprinted thereon a legend
restricting transfer in Canada for four months plus one day from the
date of issuance of the shares;
II. Paying US $20,000.00 cash within 90 days of the completion of
Passport's next financing;
III. Meeting the minimum exploration expenditures as required by the Arizona
State Land Department.
IV. Exploration expenditures on the leases will be paid for by Passport on
a 100% basis.
B. Passport Potash has the right to acquire the remaining 25% interest by
paying US $100,000 cash or stock equivalent;
C. The agreement is subject to a 2% NSR royalty with Passport retaining the
option to purchase the royalty at the price of US $150,000 per 1% or US
$300,000 for 2%.
About the Holbrook Potash Project
The Holbrook Basin is known to contain a 600 square mile potash
bed in the Permian Supai Formation as documented by the Arizona
Geological Survey (AGS) Open File Report 08-07. The potash bed was
drilled and delineated in the 1960s and 1970s by Duvall Corporation
and Arkla Exploration. Due to low potash prices in the 1970's the
Holbrook Basin potash bed was not developed after discovery. Below
is a link to the AGS report summary:
www.arizonageology.blogspot.com/2008/09/arizona-potash-resource-estimate.html
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. Susan Bertling 1-604-688-7508
www.mesauranium.com
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