The company purchased the properties through an option agreement over these tenements, revealed on December 16, 2009 with a 60 day due diligence period. The company successfully completed its due diligence on the project.
As per the terms of the deal, the company paid $40,000 in cash and securities (690,024 ordinary shares) for a combined value of $200,000 and further consolidates the company’s project areas at Red Canyon (Daneros, Lark Royal, Radium King, Spook and Maybe).
This acquisition increases the company’s landholding in Utah from 14,000 acres to approximately 15,500 acres with in excess of 1,450 additional acres at Red Canyon. The transaction is subject to the TSX Venture Exchange approval.
Combined with the recent purchase of 93 tenements from Uranium One, the company has secured more than 90% of Red Canyon, containing in excess of 6,000mt of buried river channels, the host lithology for roll front uranium deposits in the White Canyon district.
An additional 2,000mt to 4,000mt of inferred river channels exist within the Radium King and Maybe tenements.
The company said that the addition of the Yellow Parrot claims will allow it to expand its operations in the Red Canyon with the comfort of knowing that the extensions of the known mineralization and the projected mineralization in its area of operations has been secured under entire ownership by the company.
