VANCOUVER, April 10 /CNW/ - Western Uranium Corporation (the "Company" or "Western") is pleased to announce that it has entered into an agreement to acquire prospecting permits and mineral claims granting exploration rights over approximately 486,000 acres in the Thelon Basin in Nunavut and the Northwest Territories. The exploration rights, which are currently held by Ruby Hill Exploration Inc. will be acquired by the Company pursuant to the terms of a letter agreement between the Company and Ruby Hill made April 7, 2006. Under the letter agreement Western will acquire the exploration rights in exchange for 1.1 million shares of Western. Completion of the acquisition, which is expected to occur on or before April 26, 2006, is subject to satisfactory due diligence in respect of the exploration rights, and receipt of all applicable regulatory approvals.
The Thelon Basin is geologically analogous to the Athabascan Basin and exhibits comparable exploration potential for hosting high grade uranium deposits. Currently, the Thelon Basin hosts two significant uranium deposits; the Kiggavik deposit reported to contain 40 million pounds at a grade of 0.65% of U3O8, which is located on the southern perimeter of the northern extension of the basin in Nunavut, and Boomerang Lake, on the western perimeter of the southern extension in the Northwest Territories. The Thelon Basin has been far less intensively explored than the Athabasca Basin and this acquisition places Western as an early entrant into a very prospective location. The exploration rights to be acquired by the Company includes nine prospecting permits granted in Nunavut in February 2006, covering 355,000 acres located in and along the north and north-east perimeter of the Thelon Sandstone. In addition, in September 2005 35 claims were staked in 3 claim groups covering 87,500 acres in the Northwest Territories, along the south and south-east perimeter of the Thelon Sandstone, and a prospecting permit covering an additional 44,172 acres was granted in February 2006.
On behalf of the Board of Western Uranium Corporation,
"Pamela J. Klessig"
Pamela J. Klessig
President & CEO
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved or disapproved of the contents of this press release.
