Mega Uranium Ltd. And Cameco Australia Pty Ltd Enter Formal Binding Farm In And Joint Venture Agreement For Kintyre Rocks Project, Western Australia
TORONTO, Ontario (January 30, 2014) - On July11, 2013 Mega Uranium Ltd. (TSX:MGA) ("Mega"or the "Company") announcedthat it had entered into a non-binding farm in and joint venture terms sheet ("TermsSheet") with Cameco Australia Pty Ltd ("Cameco"), a wholly owned subsidiary ofCameco Corporation (TSX: CCO, NYSE: CCJ), in respect of certain grantedtenements and tenement applications that comprise Mega's Kintyre Rocks project,located in the East Pilbara region of Western Australia ("Project"). TheProject, owned by Boxcut Mining Pty Ltd ("Boxcut"), a wholly owned subsidiaryof Mega, immediately surrounds the lease containing the Kintyre uranium deposit,jointly owned by Cameco and Mitsubishi Development Pty Ltd ("Mitsubishi").
Mega is pleased to announcethat it has now completed negotiations of, and entered into, a formal bindingfarm in and joint venture agreement for the Project with Cameco, in place ofthe Terms Sheet ("Definitive Agreement").
Pursuant to the DefinitiveAgreement:
Cameco may earn an initial 51% interest in the Project by sole funding expenditure for exploration activities of AUD$2 million within 24 months from the date of the Definitive Agreement (the "Stage 1 Farm In"). Upon Cameco earning a 51% interest in the Project, Boxcut and Cameco will form a joint venture for the purpose of maintaining and exploring, and, if justified, the development and mining of, the Project. Cameco will be the operator of the Project during the Stage 1 Farm In period and the manager of the joint venture after the joint venture formation date. Cameco may elect to earn an additional 19% interest in the Project (for an aggregate total interest of 70%) by sole funding expenditure for exploration activities of AUD$4 million (inclusive of the AUD$2 million expenditure to earn a 51% interest in the Project) within four (4) years from the date of the Definitive Agreement.The Definitive Agreementotherwise contains terms, representations and warranties that are customary foran agreement of its kind. The Definitive Agreement represents a greatopportunity for Mega to advance the exploration and development of the Projectwith a world class joint venture partner that has significant uranium explorationand other expertise in the area.
Mega looks forward to workingwith Cameco to advance the Project.
KintyreRocks Project, Western Australia
The Project comprisesgranted exploration licences E45/2690 and E45/2691, and applications forprospecting licences P45/2657, P45/2658 and P45/2659. These tenements surroundthe lease containing the Kintyre uranium deposit, jointly owned by Cameco andMitsubishi. Within Mega's ground are geological settings analogous to that ofthe Kintyre deposit.
ABOUT MEGA URANIUM
Mega Uranium Ltd. is a Toronto-based mineralresources company with a focus on uranium properties in Australia, Canada andCameroon. Further information on Mega can be found on the company's website atwww.megauranium.com.
For further information, please contact:
Investor RelationsMega UraniumLtd.Richard PatricioEVP CorporateAffairsT: (416) 643-7630info@megauranium.comwww.megauranium.com
NoteRegarding Forward-Looking information
Certain informationcontained in this press release constitutes "forward-looking information",which is information regarding possible events, conditions or results ofoperations that is based upon assumptions about future economic conditions andcourses of action. All information other than matters of historical fact may beforward-looking information. In some cases, forward-looking information can beidentified by the use of words such as "seek", "expect", "anticipate","budget", "plan", "estimate", "continue", "forecast", "intend", "believe","predict", "potential", "target", "may", "could", "would", "might", "will" andsimilar words or phrases (including negative variations) suggesting futureoutcomes or statements regarding an outlook. Forward-looking information in this press release includes, but is notlimited to, statements about our plans regarding future property developmentand the fulfillment of each party's obligations under the Definitive Agreement.
By its nature,forward-looking information involves known and unknown risks, uncertainties andother factors which may cause our actual results, performance or achievements,or industry results, to differ materially from those expressed or implied bysuch forward-looking information. Some of the risks and other factors that couldcause actual results to differ materially from those expressed in theforward-looking information contained in this release include, but are notlimited to: the failure of either party to comply with its obligations underthe Definitive Agreement, risks associated with the mineral explorationindustry generally (including the geology, grade and continuity of mineraldeposits and conclusions of economic evaluations; results of initialfeasibility, pre-feasibility and feasibility studies, and the possibility thatfuture exploration, development or mining results will not be consistent withthe Company's expectations), the potential for delays in exploration ordevelopment activities or the completion of feasibility studies; risks relatedto commodity price and foreign exchange rate fluctuations; the uncertainty ofprofitability based upon the cyclical nature of the industry in which theCompany operates; risks related to failure to obtain adequate financing on atimely basis and on acceptable terms or delays in obtaining governmentalapprovals or in the completion of development or construction activities; risksrelated to environmental regulation and liability; political and regulatoryrisks associated with mining and exploration; and other risks and uncertaintiesrelated to the Company's prospects, properties and business strategy.
Although we haveattempted to identify important factors that could cause actual results orevents to differ materially from those described in the forward-lookinginformation, readers are cautioned that this list is not exhaustive and theremay be other factors that we have not identified. Readers are cautioned not to place unduereliance on forward-looking information contained in this release. Forward-looking information is based upon ourbeliefs, estimates and opinions as at the date of this release, which webelieve are reasonable, but no assurance can be given that these will prove tobe correct. Furthermore, we undertake noobligation to update or revise forward-looking information if these beliefs,estimates and opinions or other circumstances should change, except asotherwise required by applicable law.
All forward-lookinginformation contained in this release is expressly qualified by this cautionarynote.