SOURCE: Cromwell Uranium Corp.
|
July 16, 2007 09:00 ET
Cromwell Uranium Corp. Completes Acquisition of Cromwell Uranium Holdings Inc.
SCOTTSDALE, AZ--(Marketwire - July 16, 2007) - Cromwell Uranium Corp. (
OTCBB:
CWLU) today is pleased to announce the completion of its acquisition by merger of Cromwell Uranium Holdings Inc. on July 11, 2007. The transaction is described in a current report on Form 8-K filed with the U.S. Securities and Exchange Commission on July 13, 2007.
Cromwell Uranium acquired Cromwell Holdings, in exchange for its issuance of 31,000,000 shares of common stock to the shareholders of Cromwell Holdings in a transaction which was exempt from the registration requirements of federal and state securities laws.
As a result of the merger and related transactions, and as of July 11, 2007, Cromwell Uranium has 56,193,002 shares of common stock issued and outstanding. The former shareholders of Cromwell Holdings own 31,000,000 shares of Cromwell Uranium common stock, representing approximately 55% of the issued and outstanding shares.
As part of the transaction, Robert McIntosh, David Naylor and Graeme Scott were appointed to Cromwell Uranium's board of directors on July 11, 2007. Additionally, Robert McIntosh was appointed our President and Chief Executive Officer, and David Naylor appointed as our Chief Financial Officer. Concurrently,
David Rector resigned as President, Secretary and Treasurer of our company and remains as a director of our company, and Karen Law resigned as a director.
With the recent rise in the price of uranium to over $135 per pound, Cromwell Uranium Corp. has assembled a portfolio of uranium projects that includes the Monmouth Uranium Project. Monmouth is located in Central Ontario Canada, a 1.5-hour drive north of Toronto, near Gooderham Ontario. Cromwell has two other exploration projects located near Elliott Lake and Long Lac Ontario, Canada. The Monmouth Uranium Project is significant to the Company due to the historical work that has been performed.
Uranium was discovered at Monmouth in the early 1950s. The operators at that time conducted surface trenching across approximately 1,000 feet that showed grades 0.14% U3O8 over 35 trenches and had limited follow-up drilling. A trenching and drilling program was completed in the late 1960s that included a qualifying report by S.W. Evans for the owner at that time, Northern Nuclear in 1968. The geology at Monmouth is comprised of Uranium crystals disseminated in an altered limestone (skarn) with a thickness 15-60 feet. This skarn horizon has been mapped for a length of 6,000 feet. Only 1,500 feet of the strike length has been explored to some detail. All historical drill holes cut uranium mineralization ranging from 1/10 pound to over 6 pounds of uranium per ton.
Previous operators estimated from drilling the potential of 2 million tons containing 0.45% (0.9) pounds per ton or 1,800,000 pounds of U3O8. The Monmouth Uranium Project is open along strikes to the northeast and southwest and down dip to the southeast. The Company believes that the low cost mining factors due to proximity to infrastructure combined with the 1970 metallurgical test that shows 80 plus percent recovery by simple gravity separation, demonstrate a potential for a reliable low cost producing uranium deposit. The Company anticipates that due to the scope of limited work in the 1950s and 1960s that the Monmouth Uranium Project has the potential to expand on the estimates of previous operators. Cromwell is conducting a prospecting, geological mapping and surface trenching program at this time.
ABOUT CROMWELL URANIUM CORP.
Cromwell Uranium Corp. is an exploration Company which intends to develop Uranium assets in North America. Cromwell's initial asset, the Monmouth Uranium Project is envisioned to have the potential of a low cost, open pit uranium producer located close to infrastructure and end product buyers.
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our uranium properties and any anticipated future production.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with mineral exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD
Cromwell Uranium Corp.
Robert McIntosh-President
