Pancontinental Uranium Enters Into Uranium Joint Venture in Burkina Faso
June 23 2008 - 11:14AM
Marketwired
TORONTO, ONTARIO (TSX VENTURE: PUC) is pleased to announce that
its subsidiary, Crosscontinental Uranium Limited
("Crosscontinental"), has signed a Joint Venture Agreement (the
"Agreement") with Southern Cross Exploration NL ("Southern Cross")
and Longreach Oil Limited ("Longreach Oil") on the Oursi uranium
project in Burkina Faso, West Africa. Crosscontinental is a private
Canadian company equally owned by Pancon and Crossland Uranium
Mines Limited ("Crossland"), established to explore for uranium
outside of Australia.
The Oursi project consists of two permits granted for uranium
exploration in northeastern Burkina Faso held by Southern Cross
(and Longreach Oil indirectly), namely "Tin Dioulaf" and "Agalsa"
(collectively, the "Permits").
Crosscontinental will be the manager and operator of the Joint
Venture.
Essential terms of the Agreement are summarized as follows:
- Crosscontinental can earn up to a 35% interest in the Permits
by spending AUD$150,000 which includes reimbursement of some
acquisition costs and the completion of a detailed airborne
geophysical survey within the first nine months of the Agreement.
These are the minimum commitment requirements before
Crosscontinental can withdraw from the Joint Venture. If
Crosscontinental does not meet the minimum commitment requirements,
then it will have no interest in the Permits.
- Crosscontinental can increase its interest to 50% upon the
completion of spending a further AUD$400,000 within the first three
years of the Agreement.
- If Crosscontinental increases its interest to 50%, Southern
Cross and Longreach Oil can elect separately to participate in
further expenditures with their respective 37.5% and 12.5%
interests ("Participating Interest"). Crosscontinental's interest
can increase to 80% if Southern Cross and Longreach Oil elect
separately to reduce their respective interests to 15% and 5%
("Non-participating Interest"). Each scenario is free carried to
the definition of a JORC-compliant Resource, completion of a
favourable bankable feasibility study and a Decision to Mine.
- At the Decision to Mine, Southern Cross and Longreach Oil can
elect separately to either participate in further expenditure in
proportion to its Participating or Non-participating Interest or
convert its interest to an NSR (1.5% for Southern Cross and 0.5%
for Longreach Oil).
The Oursi project tenements cover a combined area of 500 square
kilometres and include a 50 kilometre strike length of an
unconformity structure that is considered to be prospective for
uranium deposits. A known uranium mineralization occurrence is
located 50 kilometres along strike and west of the Oursi tenements.
It is intended that the project will be operated by
Crosscontinental Burkina Sarl, a wholly-owned subsidiary of
Crosscontinental. Initial aerial inspection of the title has been
completed. There is no existing detailed airborne radiometric
survey coverage over the area and Crosscontinental is currently
seeking a contractor to undertake a survey covering the tenements.
This survey is expected to commence as soon as a suitable
contractor has been engaged, necessary approvals are in place and
weather permits.
Burkina Faso is a West African republic that has favourable
settings for certain types of uranium deposits and has not been
intensively explored in the past. Crosscontinental has applied for
additional permits in prospective areas.
About Pancontinental Uranium Corporation
Pancontinental Uranium Corporation ("Pancon") is a
Canadian-based company focused on uranium discovery and
development. Through a joint venture with Crossland Uranium Mines
Limited ("Crossland") of Australia, Pancon has established one of
the strongest management teams in the uranium industry. This
management and operating team has unparalleled experience from
exploration, through development to operations, and includes people
who were instrumental in the discovery of two of the largest
uranium deposits in the world. Pancon holds an impressive
exploration portfolio with projects in prolific, mining friendly
districts. Active exploration is ongoing at four Australian
projects which include Chilling, Charley Creek, Kalabity and
Crossland Creek. The Chilling project has the potential to host a
mirror image of a portion of the renowned Alligator Rivers Uranium
Field containing the large Jabiluka, Ranger and Koongarra deposits.
Pancon is earning a 50% interest in this significant uranium
project portfolio through the joint venture with Crossland through
the expenditure of A$8 million. Pancon and Crossland are also
pursuing exploration beyond Australia through international
subsidiary company, Crosscontinental Uranium Limited, and immediate
plans include formulating an exploration program in Burkina
Faso.
Qualified Person
The exploration activities and results contained in this report
are based on information compiled by Geoffrey S. Eupene, CP., a
Fellow of the Australasian Institute of Mining and Metallurgy. Mr.
Eupene is the designated Qualified Person for the joint venture
exploration activity. He is a director of Pancon and Crossland and
is a full time employee of Eupene Exploration Enterprises Pty. Ltd.
Mr. Eupene has reviewed this press release.
For additional information, please visit our website at
www.PanconU.com.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Contacts: Pancontinental Uranium Corporation Richard Mark
President and CEO (604) 986-2020 or 1-866-816-0118 (604) 986-2021
(FAX) Pancontinental Uranium Corporation Ashleigh Meyer Manager,
Investor Relations (416) 867-8073 Email: info@PanconU.com Website:
www.PanconU.com
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