Titan Uranium to acquire 100 percent of Sheep Mountain

By Staff
August 27, 2009 --

SASKATOON, Saskatchewan, Canada - Titan Uranium has agreed to acquire the 50 percent interest in the Sheep Mountain property held by Uranium One Inc., giving Titan a 100 percent interest in the Fremont County property.

The Sheep Mountain deposit has a current mine permit issued by the Wyoming Department of Environmental Quality. Several minor amendments to this permit will be required to reopen the mine.

In conjunction with the transaction, Titan will also acquire Uranium One's half interest in the Hollie Claims in Utah, and transfer its 50 percent interests in the Breccia Pipe project in Arizona and the Burro Canyon project in Colorado to Uranium One.

The terms of the agreement include An initial cash payment of $850,000 for Sheep Mountain and the Hollie claims;
A payment of $2 million if the month-end spot uranium price exceeds $65 per pound within three years of the closing date;
A further payment of $4 million a month if the month-end spot price exceeds $85 per pound within three years of the closing date;
Titan will assume the full amount of the reclamation bond for the Sheep Mountain property (total bond amount: $2.1 million)

A credit of $500,000 payable to Titan on closing, as payment for the Breccia Pipes and Burron Canyon projects Termination of the existing joint venture between the two companies The transaction is expected to close this September.

http://www.wyomingbusinessreport.com/article.asp?id=101824