Moving nicely higher after PR. Uranium will continue be a good investment at least till the end of 2008...JMHO
Northwestern and Uramin partner in Niger
TORONTO, June 4 /PRNewswire-FirstCall/ - Northwestern Mineral Ventures Inc. (TSX-V: NWT - News; OTCBB: NWTMF - News) has entered into a Joint Venture Agreement with UraMin Inc. (TSX: UMN; AIM: UMN) to form a new corporation that will advance a total of eight highly prospective uranium concessions in Niger. Marek J. Kreczmer, Northwestern's President and CEO, will lead the new company and has been appointed Managing Director and CEO. Mr. Kreczmer will also serve as a member of the Board of Directors.
The agreement provides that Northwestern will receive a 50% equity stake in the new company, a cash payment of C$4,800,000 as well as a 3% net smelter royalty on the production of uranium and any other ores and/or minerals produced from its Irhazer and In Gall concessions, which will become two of eight properties in the new company's uranium portfolio. UraMin will contribute six uranium properties, which are located in the same geographic area as Niger's two producing Areva mines, as well as US$15,000,000 in exchange for its 50% equity stake.
"This is an exciting development for Northwestern and its shareholders. UraMin has significant experience in building mines across Africa and we are gaining access to their expertise as producers. Northwestern is also acquiring a sizeable interest in six additional uranium properties in Niger," said Mr. Kreczmer. "With the US$15,000,000 investment from UraMin, we have a solid financial foundation combined with considerable technical resources at our disposal. We look forward to advancing exploration activities on our expanded uranium property portfolio in Niger, which is already one of the world's top uranium-producing nations."
UraMin's CEO Ian Stalker, an international mining executive with over 30 years of mining experience in Europe, Africa and Australia, has been appointed Executive Deputy Chairman and President of the new company, while Neil Herbert, UraMin's Finance Director, has been named CFO. In addition, both Mr. Stalker and Mr. Herbert have been appointed to the Board of Directors. Northwestern will nominate one additional director as well as a non-executive Chairman, to bring the total number of Board members to five.
"By combining our resources in Niger we not only bring together the highly prospective license areas of both companies but we also marry Northwestern's established exploration team in Niger with UraMin's international mining team," said Stephen Dattels, Deputy Chairman of UraMin. "This is a very exciting combination and we look forward to proceeding with a major exploration program in Niger at a pace that would otherwise not have been possible."
FTS |
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