| ||September 02, 2010|
Mesa Signs Definitive Agreement on the Holbrook Potash Project
| ||Mesa Uranium Corp. (TSX-V: MSA) is pleased to announce that it has signed a Mineral Property Option Agreement with Passport Potash (PPI) on the Holbrook Potash project in Arizona. 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 equivalent work expenditure;
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:
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: Wed Sep 8, 2010, Mesa Engages Continental Metallurgical Services
You can view the Previous News Releases item: Wed Aug 25, 2010, Mesa Signs Letter of Intent to Acquire Potash Project
You can return to the main News Releases page, or press the Back button on your browser.