Uranium Valley Mines Ltd. Enters into a Property Option Agreement
Val-d’Or, Québec – Uranium Valley Mines Ltd. (TSX-V: VZZ, the “Company”) announces that it has entered into an agreement with 2973090 Canada Inc. (the “Optionor”) pursuant to which the Company has an option (the “Option”) to acquire a 100% interest in four mining claims located in Langmuir Township, Ontario, known as the Porcupine Miracle Prospect (the “Property”). As consideration for the Option and upon acceptance from the TSX Venture Exchange (the “Exchange”), the Company will issue to the Optionor 200,000 common shares of the Company (the “Payment Shares”) as follows: 66,666 Payment Shares will be issued on the first business day after Exchange approval (the “Approval Date”), 66,667 Payment Shares will be issued on the first anniversary of the Approval Date and 66,667 Payment Shares will be issued on the second anniversary of the Approval Date. The Option is exercisable until the third anniversary of the Approval Date. In order to exercise the Option, the Company is required to incur exploration expenditures of $50,000 by the second anniversary of the Approval Date and, in addition, to maintain the Property in good standing. The Property will be subject to a royalty in favour of the Optionor equal to 3% of net smelter returns. Advance royalty payments of $10,000 per annum are payable by the Company commencing on the third anniversary of the Approval Date; the advance royalty payments will be deducted from the amounts payable under the royalty.
The Optionor is a Canadian corporation of which Glenn J. Mullan is a shareholder, director and officer. As Mr. Mullan is also a director and the President and CEO of the Company, related party considerations pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) will apply. The Company proposes relying on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction insofar as the transaction will involve interested parties will not exceed 25% of the Company’s market
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. 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 realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Golden Valley Mines Ltd.
Glenn J. Mullan
Chairman, President, and CEO
+1.819.824.2808 ext. 204