Noka options 25% of 400,000 Acre Uranium Property Package in Patterson Lake and East Athabasca Areas of Saskatchewan and Announces Financing of up to $750,000
Vancouver, BC – May 16, 2013: Noka Resources Inc. (TSX-V: NX)(the “Company”) is pleased to announce it has entered into a mineral property option agreement (the “Agreement”) with Skyharbour Resources Ltd. (“Skyharbour”)(TSX-V: SYH) pursuant to which Skyharbour has granted the Company an option to acquire a 25% interest in a total of seven prospective uranium properties consisting of 45 mineral claims covering 161,755 hectares (approx. 400,000 acres) located in the Athabasca Basin Region of Northern Saskatchewan (the “Athabasca Property”).
The Athabasca Property
Six of the properties consisting of approximately 388,000 acres of prospective ground are strategically located to the north, south, east and west of the Alpha Minerals (TSX.V: AMW) and Fission Uranium's (TSX.V: FCU) Patterson Lake South ("PLS") uranium discovery on the western flank of the Athabasca Basin. The properties were acquired by Skyharbour for their proximity to the PLS discovery and interpreted favourable geology for the occurrence of PLS style uranium mineralization. Skyharbour's land position is one of the largest in the Patterson Lake area.
The Patterson Lake area has received escalating exploration attention and claim acquisition activity as a result of the new, shallow discoveries made by Alpha and Fission which includes the recently reported drill interval of 6.26% U3O8 over 49.5 metres in drill hole PLS 13-053. This mineralized zone is located approximately 400 metres to the northeast of discovery hole PLS 12-024 which returned 2.49% U3O8 over 12.5 metres. Consistent high grade, near surface U3O8 assays from Alpha and Fission demonstrates the potential for high-grade uranium mineralization on the margins of the underexplored western side of the Athabasca Basin. There are still areas in the Athabasca Region that are highly prospective and underexplored for high-grade uranium as illustrated by Alpha's and Fission's recent discovery.
In addition to the large land package in the Patterson Lake area, Skyharbour has also optioned to the Company a 25% interest in the 11,769 acre Wheeler uranium project located on the eastern flank of the Athabasca Basin. The property has three historical uranium showings on it with grab sample assay values ranging from 10 ppm to 0.495% U3O8.
As consideration for granting the 25% option, the Company will pay Skyharbour the sum of $100,000, issue a total of 640,000 common shares and incur a total of $1,000,000 in exploration expenditures on the properties over the two year term of the Agreement ($500,000 in year one and $500,000 in year two). Skyharbour will remain the operator on the properties.
Roughly 115,000 acres of the total land position was staked directly by Skyharbour for which a 2% NSR is reserved in favour of Skyharbour while the other approximately 285,000 acres were staked by an arms-length party and are subject to an underlying 2% NSR. The Agreement is subject to the acceptance of the TSX Venture Exchange.
Skyharbour now has two option agreements for its Athabasca Property package wherein Noka and Lucky Strike Resoures Ltd. (TSX-V: LKY) each have options to earn in 25% into the Athabasca Property. Jim Pettit, Director of Skyharbour, stated: “With this agreement, Skyharbour continues to execute its strategy of bringing in value-add partners into the project with the goal of making a new discovery on its large uranium land package in the Patterson Lake area. Noka Resources brings further technical expertise and a proven management team to the table as the three partners collectively advance the project over the next few months. The first phase of exploration consisting of an airborne geophysical survey is currently being planned as we set the stage for an aggressive work program this year on the properties. Between Lucky Strike and Noka, there is $2 million committed to work expenditures over the next two years with $1 million to be spent in the first year. We believe this partnership and structure offers the best prospects of making a new uranium discovery in the Athabasca Region while at the same time mitigating company-specific risk.”
Noka President, Nav Dhaliwal, stated: “We are extremely excited to be part of this joint venture in such close proximity to the PLS discovery and to hold one of the largest land positions in the Patterson Lake area.
About Uranium and the Athabasca Basin
The Athabasca Basin of Northern Saskatchewan hosts the world's largest and richest high-grade uranium deposits accounting for approximately 20% of global primary uranium supply. Athabasca uranium deposits have grades substantially higher than the world average grade of about 0.14% U3O8. The two dozen or so known uranium deposits within the Athabasca Basin have average grades of more than 3.0% U3O8.
Robert Marvin, P.Geo., CPG, geologist for Skyharbour is the Qualified Person as defined by National Instrument 43-101 and has approved the technical information in this release.
The Company also announces that it is seeking to raise up to $750,000 through the issue of a non-brokered private placement of units (the “Units”) at a price of $0.10 per Unit.
Each Unit will consist of one common share and one share purchase warrant. Each warrant is exercisable by the holder to acquire one additional common share of the Company for a period of two years from issuance at an exercise price of $0.20 per share.
The proceeds of the financing will be used towards general working capital purposes and for exploration on the Athabasca Property. Finders’ fees may be payable subject to Exchange guidelines.
Completion of the offering is subject to TSX Venture Exchange approval. All securities issued under the offering will be subject to a four-month statutory hold period.
For further info on the Company, please email [email protected].
On Behalf of the Board
Nav Dhaliwal, President
Noka Resources Inc.
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.