Uranium Valley Mines Acquires 100% of Porcupine Miracle Prospect & Grants Stock Options
10 JULY 2017
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
Val-d’Or, Québec – July 10, 2017 – Uranium Valley Mines Ltd. (TSX-V:VZZ.H) (the “Company”) is pleased to announce that it has acquired a 100% interest in four mining claims located in Langmuir Township, Ontario, known as the Porcupine Miracle Prospect (the “Property”), on exercise of the option granted to the Company by 2973090 Canada Inc. (the “Optionor”) in accordance with the terms of the mining option agreement between the Company and the Optionor, as previously announced by news release dated July 9, 2014.
As consideration for the option and in accordance with the terms of the option agreement, the Company has issued to the Optionor an aggregate 200,000 common shares of the Company and has incurred exploration expenditures of as least $50,000 (which ground fieldwork is discussed in the Company’s news release of June 20, 2017), and has maintained the Property in good standing during the term of the option.
The final tranche of 66,667 payment shares to be issued to the Optionor in order to exercise the option will be subject to a hold period until November 14, 2017, in accordance with applicable securities legislation and the policies of the TSX Venture Exchange.
The Property is subject to a royalty in favour of the Optionor equal to 3% of net smelter returns. Advance royalty payments of $10,000 per annum are payable by the Company commencing on the third anniversary of the Approval Date; the advance royalty payments will be deducted from the amounts payable under the royalty.
The Optionor is a Canadian corporation of which Glenn J. Mullan is a shareholder, director and officer. As Mr. Mullan is also a director and the President and CEO of the Company, related party considerations pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) apply. The Company has relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as neither the fair market value of the subject matter, nor the fair market value of the consideration for, the transaction insofar as the transaction involved interested parties exceeded 25% of the Company’s market capitalization.
The Company also announces that it has granted incentive stock options to directors, officers and consultants of the Company, which entitle the purchase of an aggregate 1,915,000 common shares in the capital of the Company at a per share price of $0.05 for a period of 10 years. Any common shares issued on exercise of these options will be subject to a hold period until November 11, 2017, pursuant to the policies of the TSX Venture Exchange and applicable securities legislation.
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.