CALGARY, Alberta, Canada, Oct. 7, 2003 (PRIMEZONE) -- Radar Acquisitions Corp., a Calgary, Alberta based company (TSX Venture Exchange:RAC), is pleased to announce the signing of a Memorandum of Understanding (MOU) with Kiewit Mining Group (Kiewit), a major mining company based in Omaha, Nebraska. The MOU forms a relationship to pursue the development of a 400-500 Megawatt lignite fueled mine mouth power project on leases held by Radar in Colorado.
Peter Kiewit Sons', Inc., Kiewit Mining Group's parent company, is one of the largest construction and mining companies in North America, with more than 30 district and area offices in the United States and Canada.
Pursuant to the MOU, Kiewit has purchased 224,000 of Radar common shares at a price of $0.60 CDN through an expedited private placement for net proceeds of $134,400 CDN. An additional 224,000 share purchase warrants were issued for a period of two years with an exercise price of $1.20 CDN. The proceeds of the private placement will be used for the next stage of development for the Limon Coal Project.
In the first phase of the development, the companies will conduct further studies and lay the groundwork for further development. Funding will come from Kiewit for the majority of the project activities. The activities are expected to conclude within one year. The MOU also lays out the essential terms for a continued Project Development Agreement in which Kiewit, with additional funding, could earn up to a 50% interest in the coal and power project.
Radar will maintain its heavy mineral holdings independently of the current MOU between Radar and Kiewit.
A Management Committee has been established with two representatives from both Radar and Kiewit. The management committee will oversee project management and expenditures. Kiewit agrees to act as manager of the lignite mine and receive a negotiated fee.
John Bergen, President of Radar, comments, "We are very pleased with the progress of the Limon Project, and, in particular, the signing of the MOU with our co-development partner Kiewit Mining Group. This marks another of many milestones for Radar, and the second major transaction between Radar and a substantial partner -- the lease signing with Anadarko Petroleum (NYSE:APC) being the first. The prospects for the future are very encouraging, and our strong management team looks forward to exploring the numerous possibilities that will come as a result of this latest development."
The Limon Coal Project, located 90 miles south east of Denver, Colorado, encompasses over 22,500 acres of leases held by Radar. These leases include 15,360 acres of land which were acquired on April 23, 2002 from RME Land Corp., a subsidiary of Anadarko Petroleum Corporation (NYSE:APC). The project consists of a coal deposit of over 250 million tons which overlies a heavy mineral beach sand deposit. Radar is developing the potential for an integrated mining development that would see an on-site power plant built to utilize the coal produced from the property.
Radar will continue to update shareholders on the progress of the current and future corporate news, financings, and project developments. Management welcomes the opportunity to present detailed project information to shareholders or other interested parties. For further project and corporate information contact Kevin Hodgson (Project Manager) radaracq@telusplanet.net, and for investor inquires contact Gordon Beach (Broker/Investor Communications) gbeach@telusplanet.net
Foreign Purchase Information: CUSIP # 749923108
IBM Security Code - 565656
Stock Symbol RAC on the TSX Venture Exchange
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