Centram Exploration to form JV with Crossland Uranium
2007-02-15 10:44 ET - News Release
Shares issued 22,460,562
CNA.H Close 2007-02-14 C$ 0.32
Mr. Richard Mark reports
CENTRAM EXPLORATION LTD.: JOINT VENTURE WITH CROSSLAND URANIUM
Centram Exploration Ltd. has entered into a letter agreement with Crossland Uranium Mines Ltd., an Australian company, regarding a joint venture.
Letter agreement
Under the terms of the letter agreement, which is dated Feb. 14, 2007, Crossland and the corporation have established a joint venture effective immediately. Crossland will contribute three advanced uranium properties to the joint venture and Centram will have the right to earn a 50-per-cent interest by spending on these uranium properties a total of $8-million (Australian) over four years, with a minimum commitment of $4-million (Australian) over two years. In order to earn any interest, Centram must expend the full $8-million (Australian).
Upon attaining a 50-per-cent interest, the parties will share all further expenses 50 per cent each.
A joint venture committee will be established with equal representation from both parties. Crossland will be the operator of the joint venture.
The obligations of Centram are conditional upon graduation to Tier 2 on the TSX Venture Exchange and satisfactory financing by April 30, 2007, which financing is required for both the reactivation and graduation to Tier 2.
About Crossland
Crossland is an exploration company based in Australia and currently listed on the National Stock Exchange. It has interests in a number of exploration properties. Crossland will file an application to list on the Australian Stock Exchange and a prospectus for the issuance of 22.68 million ordinary shares to raise proceeds of $5.67-million (Australian) on Feb. 13, 2007. After approval, a copy of Crossland's prospectus will be available on-line at the Crossland website.
Highlights of the joint venture
The Crossland-Centram joint venture offers the investment community a combination of:
prospective uranium properties in Australia;
management team with proven experience and success in uranium exploration, development and mining;
positive reputation in the North American and Australian investment communities; and
knowledge of global uranium industry.
The Chilling, Charley Creek and Kalabity projects, which are the uranium properties being conveyed to the joint venture, all contain known uranium occurrences and have the potential for early discovery. These three projects comprise eight titles covering 2,600 square kilometres.
Relevant experience
Crossland has an experienced board and management team, which includes Bob Cleary and Geoff Eupene, two experienced uranium experts in Australia who have both been closely involved with the definition, development and operation of the Ranger mine, Australia's largest uranium producing mine.
David Mosher, a director of Centram, led the exploration team that discovered the Jabiluka deposit, Australia's largest uranium orebody.
Director/consultant appointments
As part of the reactivation transaction, Centram has agreed, pursuant to the terms of letter agreement, to appoint Mr. Eupene and Peter Walker, current directors of Crossland, to the board of Centram, and to engage Mr. Cleary and Bob Richardson, current directors of Crossland, as consultants to Centram.
These individuals will be invaluable to Centram in pursuing its financing and other activities, and to establish the continuing co-operation and close engagement between both companies. It is contemplated that stock options will be granted to these individuals in due course pursuant to the company's stock option plan.
All transactions set out in this press release are subject to, among other matters, regulatory approval, as necessary, due diligence and definitive documentation.
We seek Safe Harbor.
