Abitex Resources Inc. Announces Proposed Acquisition of Central Uranium Corporat
posted on Apr 10, 2008 07:12AM
Jolin Gold Quebec & South Bienville property in Nunavik.
Abitex Resources Inc. (TSX VENTURE: ABE) ("Abitex") is pleased to announce that it has entered into a non-binding letter of intent with Central Uranium Corporation ("Central") and some of its key shareholders pursuant to which it is proposed that Abitex will acquire (the "Acquisition") all of the issued and outstanding common shares of Central (the "Central Shares") in exchange for common shares of Abitex ("Abitex Shares").
Under the terms of the Acquisition, shareholders of Central will receive one Abitex Share in exchange for each Central Share held. Completion of the Acquisition is subject to certain conditions including, but not limited to, the receipt of all required approvals, including approval of the TSX Venture Exchange, and the completion of a minimum $5,000,000 and maximum $10,000,000 brokered or non-brokered financing on terms to be approved by both parties. Following the acquisition, but not taking into account the abovementioned financing, Abitex will have approximately 32 million shares outstanding on a non-diluted basis and 50 million shares on a fully diluted basis, of which current Abitex shareholders will own approximately 60% and Central shareholders will own approximately 40%.
Central is a private unlisted uranium exploration company with highly prospective uranium properties in Quebec. Central's properties in Quebec comprise over 2,258 km2 of ground with uranium discovery potential in three projects - Kangiq, Central Minto and South Bienville- all located in northern Quebec in areas where significant uranium discoveries have been made recently. All three properties were optioned in 2007 from Azimut Exploration Inc. ("Azimut") (TSX VENTURE: AZM). Pursuant to the agreements with Azimut, Central can acquire up to a 65% interest in these properties over a seven year period. Initial airborne radiometric surveys over the properties have revealed the presence of significant anomalous radioactive corridors associated with lake-bottom geochemical anomaly trends. Anomaly field-proofing and continued radiometric surveys are planned for 2008.
Central Uranium Corp. of Montreal is headed by Chairman Richard Groome and President & CEO Francois Ruel, two well known and respected veterans in the financial markets. Mr Groome is the President of Notre Dame Capital, a limited market dealer involved in financing start-up and growth oriented companies. Mr. Groome has more than 20 years experience in the financial industry and he is an active board member of several public and private companies.
Prior to founding Central, Mr. Ruel was Sr VP Equity Markets for Valeurs Mobilieres Desjardins where he was responsible for the institutional divisions. Along with his responsibilities, he was a member of the board of the company. With more than 20 years experience in the financial markets, his expertise will be instrumental to the projected growth of Abitex.
Mr. Groome and Mr. Ruel have been involved in managing and/or participating in more than 600 financings in which more than $4 billion was raised for Canadian companies.
Yves Rougerie, Chief Executive Officer of Abitex, stated that "the addition of uranium exploration to Abitex activities and of key experienced technical and financial people will result in significant synergies and will lead to the creation of a potentially significant new player in the junior market in Eastern Canada". Mr. Ruel added that "Central shareholders will benefit from the added value of the geological expertise of Abitex management which will leverage Central Uranium's exploration programs".
Abitex Resources of Val-d'Or, Quebec is headed by Chairman Robert C. Bryce and President & CEO Yves Rougerie, two veterans of Quebec's mining and exploration sector. Mr Bryce, P.Eng. is well known as the premier base metal mine-builder (Selbaie, Louvicourt) in the Abitibi region and is a director of several listed companies. Mr Rougerie, P.Geo. has been involved in several significant gold, base metal (Louvicourt) and uranium (Otish) discoveries during his career and has also served on several boards. Founded in 1996, Abitex has since been actively exploring for gold and base metals across North America, and has two advanced projects, Jolin Gold and St. Stephen Nickel, which host historical resources. The St. Stephen property was recently optioned to Continental Nickel Ltd of Toronto, Ontario.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: Abitex Resources Inc.