| ||August 25, 2010|
Mesa Signs Letter of Intent to Acquire Potash Project
| ||Mesa Uranium Corp. (TSX-V: MSA) 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.
(signed) 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
For further information call:
Corporate Communications, 775-824-4533
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.
You can view the Next News Releases item: Thu Sep 2, 2010, Mesa Signs Definitive Agreement on the Holbrook Potash Project
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