|Valencia Closes Acquisition of the Agnew Lake Uranium-Rare Earth Property|
Thu Sep 23, 1:50 PM
TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - Valencia Ventures Inc. (TSX VENTURE: VVI.V) ("Valencia" or the "Company") is pleased to announce that it has closed its previously announced acquisition of the Agnew Lake property from Forbes & Manhattan Coal Corp. (formerly Nyah Resources Corp) (the "Vendor") (TSX VENTURE: NRU.V) (the "Acquisition") (See News release dated July 7, 2010).
The Agnew Lake project consists of two separate exploration properties comprised of the Agnew Lake North Uranium property (the "Agnew Lake North Uranium Property"), which is the most advanced of the two claim blocks, and the Agnew Lake South property (the "Agnew Lake South Property"). The Agnew Lake North Uranium Property consists of seven unpatented mining claims (covering 1,032 ha, or 2,550 acres) located approximately 75 kilometres by road west of Sudbury, Ontario, in Hyman and Porter Townships. These claims encompass the past producing Agnew Lake Uranium Mine which was operated by Kerr Addison Mines Ltd. between 1977 and early 1983 producing approximately 1.9 million pounds of uranium. Three of the claims (850 hectares) are subject to a Federal license under the Nuclear Safety and Control Act. The Agnew Lake Uranium Property has substantial underground infrastructure in place, including a six compartment shaft to a depth of 1,040 metres (3,412 feet) with development on six levels. A decline from surface to the 580 metre (1,900 foot) level was also developed. During the period of operation 5 mineralized zones had been identified however only two mineralized zones were developed.
The Agnew Lake South Property consists of four unpatented mining claims (covering 692 hectares, or 1710 acres) located in Hyman Township of the Elliot Lake-Blind River uranium district, Ontario.
As set out in the 43-101 compliant technical report dated October 26, 2007, prepared for the Vendor, potential rare earth elements and yttrium as by-products, which historically have not been recorded appear to be present in such quantities to warrant further analysis and investigation. The technical report is available under the SEDAR profile of the Vendor at www.sedar.com.
In consideration, Valencia will pay to Nyah total consideration equal to CAD$1,000,000 over a 12 month period, of which CAD$500,000 has been paid upon closing with a further CAD$250,000 in cash or common shares, at the sole discretion of Valencia due on or before Marche 21, 2010 and a further CAD$250,000 in cash or shares at the sole discretion of Valencia due on or before September 21, 2011.
The Acquisition is a Non-Arm's Length Transaction for the purposes of the TSX Venture Exchange as Nyah and Valencia have two common directors, Stan Bharti and Bernard Wilson and a common officer, Patrick Gleeson, who is the Corporate Secretary of both companies.
Peter Karelse P.Geo, who is independent of Valencia, is a Qualified Person under NI 43-101 and has reviewed the technical and scientific information in this press release.
Fred Leigh, President, C.E.O., commented: "We are excited to have acquired this exploration property which we believe will complement our portfolio of rare earth opportunities."
About Valencia Ventures
Valencia is a Canadian resource company traded under the symbol VVI on the TSX Venture Exchange.
For additional information, e-mail email@example.com.
Forward Looking Statements
This press release contains "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information includes, but is not limited to, statements regarding the impact of the acquisition on the Company and the receipt of regulatory approvals. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters, future prices of mineral prices; and risks of the mining industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
Frederic W.R. Leigh
Valencia Ventures Inc.
President and CEO