|April 04, 2007|
Azimut and Silver Spruce sign a Binding Letter of Intent for the Hudson Bay Uranium Property, Northern Quebec
Azimut Exploration Inc. (TSXV: AZM) and Silver Spruce Resources Inc. (TSXV: SSE) announce the signing of a binding letter of intent regarding the Hudson Bay uranium property. Silver Spruce can acquire from Azimut a 50 percent interest in the project over a five year period together with an additional 15 percent interest upon delivery of a bankable feasibility study. The binding letter of intent and resulting option agreement and joint venture agreement remain subject to the approval of regulatory authorities.
The Hudson Bay property is located near the Hudson Bay coastline in Northern Quebec, approximately 15 to 40 km from the village and airport of Umiujaq. It consists of three claim blocks totalling 537 claims with a surface area of 253 km2. This includes eight recently staked claims for which confirmation is pending from the Ministry of Natural Resources and Wildlife of Quebec.
The Hudson Bay property covers a strong regional-scale uranium lake-bottom sediment anomaly for uranium, including a peak value of 750 ppm U. The property is located along the structural transition zone between the Minto and the Bienville geological subprovinces. The area is characterized by Archean intrusive rocks as well as mafic and ultramafic rocks. Approximately 20 km south of the project, in a comparable context, uranium values of up to 1.31% U3O8 were previously reported in rock samples in an area where exploration is now proscribed. At Hudson Bay, the target type is a large intrusion-related uranium deposit amenable to open pit mining.
Silver Spruce can acquire a 50 percent interest in the project under the following conditions:
- Cash payments of $50,000 on later of signing and regulatory approval and $50,000 on the four subsequent anniversaries for a total of $250,000. Silver Spruce will also issue 200,000 common shares, and an additional 100,000 shares on the first anniversary; Silver Spruce may elect to substitute cash payments for up to 50 percent of the value of the shares to be issued.
- Minimum work expenditures of $300,000 during the first year (firm commitment) and $400,000, $600,000, $600,000 and $700,000 during the subsequent years for an aggregate total of $2,600,000.
Upon Silver Spruce acquiring a 50 percent interest, Azimut will retain a 2 percent Yellow Cake Royalty. Silver Spruce will have the option of earning an additional 15 percent interest by delivering a bankable feasibility study under the following conditions:
- The issue of 100,000 Silver Spruce shares in a one-time grant and cash payments of $30,000 per year for five years for a total of $150,000; and
- Minimum work expenditures of $200,000 per year during the five year earn in period.
If Silver Spruce decides not to exercise this additional option, Silver Spruce will provide Azimut with $100,000 in cash as final payment. Silver Spruce will be the operator.
This Letter of Intent remains subject to the approval of regulatory authorities and completion of due diligence review of the project by Silver Spruce.
This press release was prepared by geologist Jean-Marc Lulin, the company's Qualified Person as defined by NI 43-101.
Azimut Exploration is a publicly traded Canadian mineral exploration company (TSX-Venture: AZM) that maximizes the probability of discoveries by utilizing a cutting-edge targeting methodology.
About Silver Spruce
Silver Spruce Resources Inc. is a junior mining exploration company focused primarily on uranium in the Central Mineral Belt (CMB) of Labrador, Canada. With 5,649 claims totaling more than 1,400 square kilometres, Silver Spruce is the second largest land holder in one of the world's premier emerging uranium districts. Silver Spruce currently has a $2 million large-scale exploration program underway. With experienced development partners, strong financial backing and their first U308 discovery, Silver Spruce is emerging as a leading uranium explorer.
FOR FURTHER INFORMATION, CONTACT:
Gordon Barnhill, CFO & Director
Keir Reynolds, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 231
Toll Free: 1.866.684.4743 ext. 231
Sean Charland, Longview Capital Partners Inc.
Phone: 604.681.5755 ext. 291
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release. Silver Spruce seeks safe harbour.
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