Toronto, ON May 18, 2022 – Labrador Uranium Inc. (“LUR” or “Labrador Uranium”) (CSE: LUR) (OTCQB: LURAF) (F: EI1) is pleased to announce that it has closed the previously announced acquisition (the “Acquisition”) of the Mustang Lake Project (the “Mustang Lake Project”), a prospective uranium project located in the Central Mineral Belt of Labrador, approximately 9.5 kilometres northeast of Paladin Energy’s Michelin deposit, pursuant to the purchase agreement dated November 3, 2021, between LUR, Consolidated Uranium Inc., Mega Uranium Ltd. (“Mega”) and its wholly-owned subsidiary.
Pursuant to the Acquisition, LUR acquired Mega’s 66% interest in the joint venture between Mega and Anthem Resources Inc. (formerly Santoy Resources Ltd.) that holds a 100% interest in the Mustang Lake Project in exchange for the issuance of 3,000,000 common shares of LUR (the “Common Shares”). The Common Shares issued in connection with the Acquisition are subject to a statutory hold period under Canadian securities legislation ending on September 19, 2022.
Stephen Keith, CEO commented, “We are pleased to close the acquisition of the Mustang Lake Project, further expanding our footprint across the CMB. The project is a known target along strike to Paladin Energy’s existing Michelin deposit, which is among the largest deposits in North America. We now have a dominant land position in Labrador, and a strong balance sheet to support our robust exploration plans going forward.”
The Mustang Lake Project
The Mustang Lake Project is host to several uranium prospects consisting of numerous radioactive boulders, and lesser mineralized outcrop. The mineralization is hosted within felsic to intermediate volcanic rocks of the Aillik Group and lesser foliated mafic dykes that cross-cut the succession. The felsic rocks locally resemble those hosting mineralization at the Michelin deposit. The more intermediate rocks display similarities to those hosting mineralization at the Jacques Lake deposit. Three main prospects occur within the area: Mustang Lake, Irving Zone and Mustang Lake North. The project has potential for IOCG-style mineralization. The Mustang Lake Project is host to the highest lake-sediment value for uranium within the entire Michelin-Jacque Lake region. Past diamond drilling has intersected uranium values of 0.12% U3O8 over 9.11 metres
About Labrador Uranium Inc.
Labrador Uranium is engaged in the exploration and development of uranium projects in Labrador, Canada. The Company has acquired the Moran Lake and CMB Projects covering over 139,000 ha in the prolific Central Mineral Belt (CMB) in central Labrador and the Notakwanon Project in northern Labrador. Both the Moran Lake Project, which hosts historical uranium mineral resources, and the CMB Project, located adjacent to Paladin Energy’s Michelin uranium deposit, have had substantial past exploration work completed with numerous targets with uranium, copper and IOCG style mineralization. The Notakwanon Project is underexplored but drill ready. All three projects are expected to be the focus of an aggressive exploration program in 2022.
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Cautionary Statement Regarding “Forward-Looking” Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. “Forward-looking information” includes, but is not limited to, statements with respect to the anticipated timing for mailing of the LUR Shares to CUR Shareholders and the Listing; and other activities, events or developments that are expected, anticipated or may occur in the future. Generally, but not always, forward-looking information and statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotation thereof. Such forward-looking information and statements are based on numerous assumptions, including the ability of the parties to receive, in a timely manner and on satisfactory terms, necessary regulatory approvals; the ability of the parties to satisfy, in a timely manner, the other conditions to the completion of the Listing; and that general business and economic conditions will not change in a material adverse manner. Although the assumptions made in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: the diversion of management time on transaction-related issues; expectations regarding negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, reliance on key management and other personnel, potential downturns in economic conditions, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, risks generally associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations, delays in obtaining governmental or other approvals and the risk factors with respect to Consolidated Uranium set out in CUR’s annual information form in respect of the year ended December 31, 2020 and with respect to Labrador Uranium set out in CUR’s management information circulated dated January 6, 2022 , in each case filed with the Canadian securities regulators and available under CUR’s profile on SEDAR at www.sedar.com.
Although CUR and LUR have attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. CUR and LUR undertake no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.