VANCOUVER, British Columbia, June 18, 2018 (GLOBE NEWSWIRE) -- Standard Uranium Ltd. (“Standard Uranium”) and Vela Minerals Ltd. (TSX-V:VLA) (“Vela Minerals”) are pleased to announce the results of the recent geophysics program completed at Standard Uranium’s flagship Davidson River project. The VTEM (versatile time domain electromagnetic) survey completed by Geotech this past winter identified and confirmed the conductors within exploration corridors that have been conceptualized by Standard Uranium’s geological team since the acquisition of the project.
Neil McCallum, V.P. of Exploration for Standard Uranium, proposed the Clearwater Domain “Mirror Theory” when the project was acquired by Dahrouge Geologic in 2013, shortly after the discovery of the Patterson Lake South boulder-field and subsequently the Triple R Zone in 2012. He proposed the interpretation that the Patterson Lake Corridor found to the east of the Clearwater Domain, host to Fission Uranium’s Triple R deposit and NexGen’s Arrow deposit, may be mirrored on the west side of the Clearwater Domain, where the Davidson River Property is located. Recent work by the Geological Survey of Canada has supported this theory.
McCallum commented: “The exploration concept of the Davidson River Property has been materializing with every work program. The results of the recent VTEM survey exceeded my expectations, and I look forward to an aggressive discovery-driven exploration campaign this year.”
The Clearwater Domain theory is shared by Garrett Ainsworth, Director for Standard Uranium. He believes as does McCallum that the conductor corridors to the west of the Clearwater Domain possess strong potential for additional high grade uranium discoveries in the southwest Athabasca.
Ainsworth commented: “During extensional tectonics, the younger Clearwater Domain provided heat, hydrothermal fluid flow, and a potential uranium source while intruding into the older Taltson Domain. The Clearwater intrusions created a hinge point for the favourable host rocks of the Taltson, which has manifested in the Triple R and Arrow Deposits within the Patterson conductor corridor that appears to continue northwest onto Standard Uranium’s Davidson property.”
Ainsworth recently departed NexGen Energy Ltd. where he led the NexGen technical team from June 2014 to April 2018 and was co-recipient of the 2018 PDAC Bill Dennis Award for the Arrow Uranium Deposit in the southwest Athabasca Basin, Saskatchewan. Prior to NexGen, Mr. Ainsworth was co-recipient of the 2013 AME BC Colin Spence Award. This honour was in recognition of his efforts which led to the discovery of the high-grade uranium mineralized system on the Patterson Lake South Project in the southwest Athabasca Basin, Saskatchewan, which is presently owned by Fission Uranium Corp.
McCallum and Ainsworth believe the exploration corridors to the west of the Clearwater Domain, including the Patterson Lake corridor, connect with the corridors on the east of the domain and run directly through Standard Uranium’s Davidson River project. Standard Uranium is planning to prove the Clearwater Domain mirror theory and will continue to build on their recent geophysics work on the Davidson River Project this summer.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/624ea2b7-a26f-4443-8a16-ea43d3fc944e
Transaction with Vela Minerals
As previously announced on April 19, 2018, Standard Uranium will complete a reverse take-over of Vela Minerals (the “Transaction”). The Transaction is expected to be completed in July, subject to the satisfaction of customary closing conditions. These conditions include the availability of financing, and the approval of the TSX Venture Exchange (the “Exchange”). The Transaction cannot be completed until these conditions are satisfied, and there can be no assurance that the Transaction will be completed in a timely fashion, or at all.
Private Placement
In connection with the Transaction, Vela Minerals is conducting a non-brokered private placement (the “Financing”) of up to 20,000,000 common shares (each, a “Share”) at a price of $0.25 per Share. The proceeds of the Financing are intended to be used to advance exploration efforts on the Davidson River Project, and to satisfy working capital requirements of the Transaction.
“Standard Uranium was founded on the belief that the uranium market appeared positioned to take significant steps forward in 2018. As we look to raise our exploration capital, we are very pleased to have already garnered positive interest which appears to value demand for quality uranium exploration projects led by proven and experienced management.” commented Jon Bey, President and CEO of Standard Uranium.
About Standard Uranium
Standard Uranium is a mineral resource exploration company based in Vancouver, British Columbia. Since its establishment, Standard Uranium has focused on the development of prospective exploration stage uranium projects in the Athabasca Basin. Standard Uranium’s Davidson River Project is the largest private land holding in the southwest part of the Athabasca Basin, Saskatchewan, comprising 65,000 acres. The Project is highly prospective for basement hosted uranium deposits, yet remains virtually unexplored despite its proximity to recent high-grade uranium discoveries. Standard Uranium has recently completed geophysical work on the Property and is planning a further summer exploration program. In connection with the Transaction, and as required by the Exchange, Standard Uranium has commissioned a geological report on the Property. Once completed, a copy of the geological report will be available for review under the SEDAR profile (www.sedar.com) of Standard Uranium.
Qualified Person
The technical content of this news release has been reviewed and approved by Neil McCallum, a qualified person for the purposes of National Instrument 43-101.
For further information, contact Jon Bey, President and Chief Executive Officer of Standard Uranium at jbey@standarduranium.ca. Website: www.standarduranium.ca
On behalf of the Boards,
| Standard Uranium Ltd. | Vela Minerals Ltd. |
| Jon Bey | Richard Grayston |
| President and Chief Executive Officer | Chief Executive Officer |
Completion of the Transaction is subject to a number of conditions, including Exchange acceptance. The Transaction cannot close until the required approvals are obtained, and the outstanding conditions are satisfied. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.
The TSX Venture Exchange has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to anticipated financing activities, the process for completion of the Transaction, anticipated exploration activities to be undertaken by Standard Uranium, the proposed activities of the Company following completion of the Transaction, regulatory or government requirements or approvals necessary for completion of the Transaction, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.