March 1, 2013 - Lakeland Resources Inc. (TSXv: LK) (FSE: 6LL) (the “Company” or “Lakeland”) is pleased to announce that it has entered into a letter agreement dated February 26, 2013, with 877384 Alberta Ltd. for the exclusive rights to acquire eight uranium projects located within the Athabasca Basin of northern Saskatchewan and Alberta. The Athabasca Basin is host to some of the world’s largest and richest high-grade uranium deposits; and as evidenced by several recent discoveries, is considered by the Company to be significantly prospective and underexplored.
Under the terms of the letter agreement, Lakeland has until April 30, 2013 to negotiate the purchase of the projects. The purchase price remains to be finalized and will depend on the results and recommendations of a NI 43-101 report on the properties currently in process. It is expected that the Company will pay in the range of 7,500,000 shares and some cash, plus a royalty to the sellers. In addition, the Company would be expected to conduct a work program and would contract Dahrouge Geological Consulting Ltd. to perform exploration work on our behalf.
If the NI 43-101 report shows the projects to be promising, final terms will be negotiated, agreements for the acquisition of the projects would be prepared and the transaction closed, subject to TSX Venture Exchange approval. The transaction will not result in a change of control. There are several other conditions to closing and it is expected additional conditions will be included in the definitive agreements.
As part of the transaction, our board intends to appoint Steven Khan as a director, and to appoint David Hodge as a director, President and CEO. Both Messrs. Khan and Hodge have many years of successful experience with mining companies, and the Company is very pleased that both have tentatively agreed to be involved at a high level. Other changes to the board and management are possible. Complete biographies are included below:
Mr. David Hodge is a businessman with over 17 years of experience in the management and financing of publicly traded companies. Mr. Hodge has been the president of Zimtu Capital Corp. (TSXv: ZC) since July, 2008. Mr. Hodge has also served as president and director of Commerce Resources Corp. (TSXv: CCE) from its initial public offering in 1999 to the present. Mr. Hodge also serves on the boards of Western Potash Corp. (TSX: WPX), Pasinex Resources Ltd. (CNSX: PSE) and Camisha Resources Corp. (TSXv: CRN). Mr. Hodge's strengths lie in leadership and strategic direction. His success has been founded on a belief in team building, consultation and strong leadership, as well as a willingness to incorporate expert advice into a viable working enterprise.
Steven Khan, MBA CFA
Steven Khan previously spent close to twenty years in all aspects of the investment industry, including retail, and later institutional sales, corporate finance, capital markets, and investment banking. He has held several senior management roles including: Executive Vice-President, President, Chief Executive Officer, and Chairman of a number of regional and national full service Canadian investment brokerage houses that mostly focused on venture capital financings. In 2003, he started his own consulting firm that focused on business plan development and capital fund raising for a number of early stage private and public companies. In the past several years, Mr. Khan has successfully initiated, completed or partnered several major corporate development initiatives both domestically and internationally, including government partnered ventures in China and Korea. Mr. Khan was also an instrumental part of the team that negotiated Strathmore's Roca Honda Joint Venture with Sumitomo Corp of Japan in 2007. In January 2008, after serving as Executive Vice-President since 2003, Mr. Khan accepted the position of President of Strathmore Minerals Corp. (TSX: STM). Mr. Khan was also part of the founding group of Fission Energy Corp. (TSXv: FIS), and was a previous officer and director. A graduate of the University of British Columbia with a BSc. (1978) and MBA (1983), Mr. Khan also holds a Chartered Financial Analyst designation (CFA), is a member of the CFA Institute, and for many years was a long-time Fellow of the Canadian Securities Institute.
Lakeland has until April 30, 2013, to receive the technical report, analyze it, negotiate terms, and finalize and sign definitive agreements. Once those are signed, closing can occur as per the dates to be negotiated.
The Athabasca Basin Uranium Projects
The Athabasca Uranium Properties will collectively represent one of the most promising uranium exploration portfolios in Canada. In aggregate, the eight projects total approximately 190,000 ha and are centered within the western and southwestern parts of the Athabasca Basin. A majority of the land holdings target locations, where the depth to the unconformity is shallower than approximately 350-m, or are situated along the unconformable contact between basement rocks and the Athabasca Basin.
In summary the key assets of the portfolio include:
- Kelic Lake: encompasses 5 claims totaling approximately 17,250 ha along the southern margin of the basin, approximately 60 km due east of the recent Patterson Lake South Uranium discovery of Alpha Minerals (TSXv: AMW) and Fission Energy Corp. (TSXv: FIS) and about 45 km west of Cameco Corporation’s Centennial Zone. The project covers a regional scale, north-structure fault (Kelic Lake Fault) and electromagnetic conductors, which have been the subject of sporadic exploration between 1978 and 2006.
Exploration highlights include the identification of an approximately 5 km long VTEM conductor, truncated by the Kelic Lake Fault. At the juncture is a significant ‘radioactive spring’. Several drill holes in the area, suggest a complex basement morphology with depth to basement varying from <85 m to 225 m depth. Most drill holes intersected strongly altered basement rocks. Specifically, KLL-003 intersected strongly altered (Silicification/Kaolinitization) basement rocks from the unconformity at 100 m depth to the end of the hole at 135 m. This interval included 21 samples with >18 to 255 ppm U3O8.
- Davidson River: consists of 5 claims totaling 25,351 ha about 18 km due west of the Patterson Lake South Uranium discovery. The project is situated within a northwest-southeast magnetic low corridor, interpreted as the southerly extension of Shea Creek basement domain; and the southwesterly extension of the Patterson Lake magnetic corridor. The property is covered by a thin veneer of Cretaceous and Devonian rocks, which deterred historic exploration.
The Davidson River Property is within a highly prospective area within a favorable magnetic low basement rocks and is expected to host extensions to known conductors, at shallow depths, and is considered underexplored.
A map showing the location of all of the properties will be uploaded shortly to the Lakeland website.
In addition to the above, Pasinex Resources Ltd., has informed the Company that it has agreed to sell 2,000,000 shares in the capital of Lakeland at $0.05 in a private transaction.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Robert Duess, P.Geo., a Qualified Person. Technical information in this news release was based on data and reports provided to the Company by the Vendors.
About Lakeland Resources Inc.
Lakeland Resources Inc. is focused on mineral exploration in Canada. The Company commenced trading on the TSX Venture Exchange on August 19, 2010 after completing its Qualifying Transaction.
For more information, please visit the corporate website at http://www.lakelandresources.com or contact investor relations at Ph: 604.681.1568 or TF: 1.877.377.6222
On Behalf of the Board of Directors
LAKELAND RESOURCES INC.
President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements. Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that we can successfully negotiate for the purchase of 8 uranium projects in the Athabasca Basin.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include inability to come to terms with sellers of the project; that the technical report does not show sufficient promise for the projects; misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's Management Discussion & Analysis of its audited financial statements filed with the British Columbia Securities Commission.