SOURCE: Northwestern Mineral Ventures Inc.
NORTHWESTERN AND AZIMUT SIGN LETTER OF INTENT FOR URANIUM PROJECT IN NORTHERN QUEBEC
Northwestern Mineral Ventures Inc. (TSX-V: NWT; OTCBB: NWTMF) has signed a Letter of Intent to acquire a controlling interest in a highly prospective uranium project in the Ungava Bay region of northern Quebec, Canada, from Azimut Exploration Inc. (TSX-V: AZM). The “North Rae Uranium Project” consists of three blocks representing 668 claims with a total area of 298.9 km2 or 73,835 acres (29,880 hectares).
“This acquisition is consistent with Northwestern’s intentions to build a robust property portfolio that leverages the current strength in uranium prices,” said Kabir Ahmed, Chairman and CEO of Northwestern. “Azimut specializes in exploration targeting by using a proprietary methodology to generate high quality targets. The company has seven ongoing partnership agreements, including deals with Kennecott, Placer Dome and Cambior.”
The North Rae Uranium Project is located on the eastern side of Ungava Bay, 6-12 miles (10-20 kilometers) from tidewater and approximately 99 miles (160 kilometers) east of the town of Kuujjuaq near the southern shore of Ungava Bay. Access to the property is by fixed-wing aircraft or helicopter from Kuujjuaq, which has daily scheduled air service from Montreal.
For the past four years, Quebec has been rated one of the most favorable jurisdictions in the world for mineral exploration investment according to the Annual Survey of Mining Companies conducted by The Fraser Institute, a renowned Canadian economic research institution. In the 2004-2005 survey, Quebec ranked third out of 64 mining jurisdictions for its attractive mineral potential.
Under the terms of the Letter of Intent, Northwestern will pay C$210,000 in cash installments and will issue 150,000 shares. Northwestern will also spend a total of C$2.9 million in exploration expenditures over five years to earn an initial 50% interest in the project from Azimut, at which stage Azimut would retain a 2% yellow cake royalty. Shares will be subject to all required regulatory hold periods. Northwestern can increase its ownership to 65% by issuing an additional 100,000 shares and paying an additional C$100,000 in cash over five years. To earn its 65% interest, Northwestern must also incur a minimum C$1.0 million in exploration expenditures over five years and produce a bankable feasibility study. Northwestern will act as operator of the project.
The Letter of Intent is subject to regulatory approval, due diligence and environmental assessment.
ABOUT NORTHWESTERN:
Northwestern Mineral Ventures (
www.northwestmineral.com) is an emerging international exploration company with an experienced management team. The company is focused on properties with potential uranium and silver-gold targets and currently has interests in the United States, Canada and Mexico. Northwestern is listed on the NASD Bulletin Board under the symbol “NWTMF” and the TSX Venture Exchange under the symbol “NWT.”
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
This news release includes certain “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.