Blue Sky Uranium Enters Letter of Agreement for Projects in Colombia
Wednesday March 14, 7:24 pm ET
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 14, 2007) - Blue Sky Uranium Corp. (TSX VENTURE:BSK - News; FRANKFURT:MAL - News; WKN:AOMKXP) is pleased to announce that, as part of Blue Sky's strategy to expand its exploration activity into South America, the Company has entered into two option agreements to acquire 100% interests in two uranium projects in Colombia - one project, covering 5,499 hectares, in the department of Santander and another project, covering 9,592 hectares, in the department of Norte de Santander.
Under the terms of the option agreements, Blue Sky must make staged cash payments over 4 years totaling US$414,080 on each project, with US$20,000 due on each project in the first 12 months. No payments are due until the Company completes it due diligence on tenure. Each project is subject to a 3% Yellow Cake Royalty capped at US$1,100,000. During the term of the option agreements, the Company will be required to make all annual tax payments. There are no minimum work commitments. The Company is moving to establish an operating subsidiary in Colombia and work to initiate initial work programs on the properties.
The Santander property is underlain by the Jurassic Giron Formation and has potential for hosting sandstone-type uranium mineralization. The Norte de Santander property has potential for pegmatite-hosted mineralization and is underlain by Jurassic-Cretaceous granitic rocks which cut older gneisses.
Blue Sky is a newly listed uranium exploration company led by a management and technical team with substantial experience in uranium exploration. Blue Sky is well positioned to leverage management's extensive network of contacts to rapidly grow the Company into an industry leader. Blue Sky is currently actively exploring in the Athabasca Basin in Northern Saskatchewan, and is also seeking new opportunities in the Patagonia region of Argentina. Blue Sky is a member of the Grosso Group, a resource management group with over 15 years experience in exploring South America.
ON BEHALF OF THE BOARD
Mr. Sean Hurd, President & CEO
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. Investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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