TSX.V: UCR
REGINA, Nov. 28 /CNW/ - Uranium City Resources Inc. ("UCR"), is pleased to announce it has entered into a letter agreement with Red Rock Energy Ltd. ("Red Rock") (TSXV: RRK) whereby Red Rock has agreed to purchase all of UCR's exploration property claims located in northern Saskatchewan (the "Claims").
Red Rock is a junior exploration corporation with property interests in northern Saskatchewan. The purchase price for the Claims of $975,000 will be paid by Red Rock as follows:
- $75,000 to be paid to UCR in cash upon completion of the transaction
(the "Transaction"); and
- $900,000 to be paid to UCR at the option of Red Rock in cash or by
the issuance of 5 million common shares of Red Rock from treasury at
a deemed price of $0.18 per common share.
The Claims are subject to an option agreement between UCR and GLR Resources Inc. ("GLR"), made as of November 22, 2004, under which GLR has a preemptive right to purchase the Claims on the same terms and conditions as those proposed by Red Rock. Completion of the Transaction is conditional on the receipt from GLR of a written waiver of its preemptive right.
The parties' obligations to complete the Transaction are also subject to the satisfaction of the usual conditions for transactions of this nature, including the receipt of all regulatory approvals, shareholder approval, and the completion of a satisfactory due diligence review by Red Rock.
No finder's fee will be payable in connection with the Transaction.
About Uranium City Resources
Uranium City Resources is a Canadian based junior exploration company with existing Canadian projects in Saskatchewan and Newfoundland. In the USA, Uranium City Resources is participating in a joint venture project in the State of New Mexico. More information about UCR is available on line at www.uraniumcityresources.com
Forward looking information:
This news release contains certain forward-looking information. Such information includes, but is not limited to, UCR's expectation that the Transaction will be completed. Such forward-looking information is qualified in its entirety by the inherent risks and uncertainties surrounding future expectations, including that the Transaction may be completed on terms that differ materially from the terms and conditions expressed or implied by such information. Forward-looking information is based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of UCR to obtain necessary shareholder approval to complete the Transaction or either of the parties to satisfy the requirements of the TSX Venture Exchange with respect to the Transaction. The cautionary statements qualify all forward-looking information attributable to UCR and persons acting on its behalf. Unless otherwise stated, all forward-looking information speaks only as of the date of this press release and UCR has no obligation to update such information except as required by law.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.