Mesa Uranium Signs Letter of Intent on the Holbrook Potash Project
VANCOUVER, BRITISH COLUMBIA, Jul. 14, 2010 (Marketwire) — Mesa Uranium Corp. (TSX VENTURE:MSA)(PINK SHEETS:MSAJF) (“Mesa”) is pleased to announce that it has signed a non-binding letter of intent with Passport Potash (“PPI”) on the Holbrook Potash project. The project consists of Arizona State Land Department exploration leases covering 1,950 acres and is 100% wholly-owned by Mesa.
Under the letter of intent, PPI will acquire a 75% interest in the leases by issuing to Mesa 500,000 shares of PPI, $20,000 cash and pay exploration expenditures as required by the Arizona State Land Department. Any additional work will be paid for by PPI on a 100% basis. PPI will have the right to acquire the remaining 25% interest by paying Mesa $100,000 cash or PPI stock equivalent. Mesa will retain a 2% NSR royalty which PPI has the option to purchase for US $300,000.
About the Holbrook Potash Project
The Holbrook Basin is known to contain a 600 square mile potash bed in the Permian Supai Formation as documented by the Arizona Geological Survey (AGS) Open File Report 08-07. The potash bed was drilled and delineated in the 1960s and 1970s by Duvall Corporation and Arkla Exploration. Due to low potash prices in the 1970’s the Holbrook Basin potash bed was not developed after discovery. Below is a link to the AGS report summary:
www.arizonageology.blogspot.com/2008/09/arizona-potash-resource-estimate.html
About Mesa Uranium
Mesa explores and develops lithium, uranium and potash properties in the western United States. Mesa’s Green Energy Lithium Project in Utah contains lithium values as high as 1,700 ppm, 8% potash, 19% magnesium chloride, 0.6% bromine and 0.12% boron. Mesa currently has 10,945,376 shares issued and outstanding, 12,476,210 shares on a fully-diluted basis. For further information please visit our website at www.mesauranium.com.
ON BEHALF OF THE BOARD
MESA URANIUM CORP.
Foster Wilson, President and CEO
This news release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, including the likelihood of commercial mining and possible future financings are forward-looking statements. 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 developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include unsuccessful exploration results, changes in metals prices, changes in the availability of funding for mineral exploration, unanticipated changes in key management personnel and general economic conditions. Mining is an inherently risky business. Accordingly the actual events may differ materially from those projected in the forward-looking statements. For more information on the Company and the risks and challenges of its business, investors should review the Company’s annual filings that are available at www.sedar.com.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.