Atomic Minerals Ltd. (ATL: TSX-V) is pleased to announce that, further to its news release dated October 3, 2007, it has signed a second amended letter of intent with Geo Can Resources Company Ltd. on its land package in the United Republic of Tanzania to be subject to an option agreement.
The Amended LOI reflects a revised set of licenses to be acquired from Geo Can. The Amended LOI will permit Atomic to acquire under the Option up to a 90% interest in a land package now totalling approximately to over 940,000 acres divided into 10 separate licenses. The purchase price has also been revised to reflect the reduced size of the land package. The two companies have agreed to negotiate the Option based on the Amended LOI by no later than March 15, 2008 subject to the results of Atomic's due diligence on the Property (including the preparation of a title opinion and a Technical Report pursuant to National Instrument 43-101), and TSX Venture Exchange approval.
Several of the Licenses are located in southwestern Tanzania and are considered to be part of the Malawi Extension based on the location of the Property relative to blocks earmarked as potentially favourable for uranium enrichment. Other mining companies exploring in the area include Paladin Resources (Malawi), Universal Exploration, Mantra Resources and Western Metals (all in Tanzania). Paladin's Kayelekera Project is located just 60 km from Atomic's License PLR 4514.
In addition to non-refundable deposits totalling US$365,000 which the Company already paid Geo Can, Atomic paid Geo Can US$125,000 on execution of the Amended LOI. The Option will still be for a term of four years and will include the following terms, all subject to TSX-V approval:
Atomic will make cash payments and issue common shares to Geo Can as follows:
a) On closing of the Option Agreement (the "Closing"), US$160,000 and 680,000 common shares;
b) On the first anniversary of Closing, US$610,000 and 610,000 common shares;
c) On the second anniversary of Closing, US$750,000 and 750,000 common shares;
d) On the third anniversary of Closing, US$885,000 and 885,000 common shares; and
e) On the fourth anniversary of Closing, US$1,020,000 and 1,020,000 common shares.
Atomic may still elect to pay up to 75% of the value of the Atomic common shares to be issued to Geo Can in cash on the same terms as were announced in our original news release of July 25th. Atomic may also elect to exercise its option to acquire 90% of any one or more Licenses within 90 days of any anniversary of Closing. -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
