FORUM URANIUM NEWS RELEASE
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FORUM COMPLETES $3
MILLION FINANCING WITH AGNICO-EAGLE AND OPTIONS AGNICO URANIUM PROPERTY
ADJACENT TO KIGGAVIK, NUNAVUT
Vancouver , B.C. March 3, 2008. Forum Uranium
Corp. (FDC: TSX.V) ("Forum"), is pleased to announce that
Agnico-Eagle Mines Limited (AEM:TSX) ("Agnico") has completed a
private placement financing in Forum for $3 million and Forum has optioned
Agnico's Judge Sissons and Schultz Lake uranium properties (the
"Properties") located adjacent to the Kiggavik uranium deposit in
Nunavut. AREVA Resources Canada Ltd. ("AREVA") recently announced
the commencement of a feasibility study and permitting of the 148 million
pound, unconformity-style Kiggavik uranium deposit. Forum has assembled a
strategic land position in the area of the Kiggavik deposits since 2006 as
Operator of the North Thelon Joint Venture with Superior Diamonds Inc.
Sean Boyd, CEO of Agnico, stated "Agnico
is impressed by the quality of Forum's technical team and believes that Forum
is well positioned to advance our non-core uranium properties acquired
through our acquisition of Cumberland Resources' Meadowbank gold deposit in
Nunavut. In addition, we consider Forum to be a good investment opportunity
given its quality uranium assets in Saskatchewan and Nunavut."
Rick Mazur, President & CEO of Forum
Uranium Corp. stated "We are pleased to have an opportunity to evaluate
Agnico's well-located uranium prospect adjacent to AREVA's Kiggavik mine
feasibility project. Agnico is a strategic financial partner with an enviable
track record of over 30 years of continuous gold mining in Canada."
Financing Terms
Under
the terms of the private placement Agnico has subscribed for 6,122,449 units
of Forum at a price of $0.49 per unit for total subscription proceeds of
$3,000,000. Each unit is comprised of one common share and one half of a
share purchase warrant, with each whole warrant entitling the holder to
acquire a further common share at a price of $0.66 per share for a period of
two years. The securities issued to Agnico are restricted from transfer until
June 30, 2008. Proceeds from the private placement will be used to fund
exploration activity on the Company's mineral properties including, but not
limited to, the Properties, and for general working capital.
Judge Sissons and Schultz
Lake Option Agreement Terms
The
Properties consist of 36 claims, comprising 21,497 hectares that can be
viewed on the Company's website at http://www.forumuranium.com/i/maps/NTJV.jpg.
Historical showings of uranium grading up to 0.22% U3O8
have been reported from assessment files in the Nunavut Mining Recorder's
Office. Under the option agreement with Agnico, Forum has a right to earn a
51% interest in the Properties by incurring a total of $3,000,000 of
expenditures on the Properties over a four year period with a firm commitment
of $250,000 in the first year of the option. Forum may also acquire a further
14% interest by completing a bankable feasibility study in relation to the
Properties within five years of earning its 51% joint venture interest.
In
connection with its North Thelon Joint Venture, Forum has also granted
Superior Diamonds Inc. a right to earn a 50% interest in any proceeds
accruing to Forum from the development of the Properties by funding 50% of
Forum's costs related to the Properties.
History of Uranium
Exploration in the Kiggavik Area
Exploration
for uranium in the northern Thelon Basin was conducted primarily from the
mid-1970's to the mid-1980's culminating in the discovery of the Kiggavik
deposits located 80 km west of Baker Lake, Nunavut by Urangesellschaft Canada
Ltd. AREVA acquired the project in 1993. Forum, as operator and 50% owner
with 50% funding partner Superior in the North Thelon Joint Venture
("NTJV") staked over 100,000 hectares of prospective ground in the
area of the Kiggavik deposits in 2006. In 2007, the NTJV entered into an
option agreement with Tanqueray Resources Ltd. to earn a 60% interest in
uranium and diamonds on their 65,000 hectare gold property by spending $4
million in exploration over five years.
A
uranium development policy for the Territory of Nunavut was adopted in
September 2007 and, shortly thereafter, AREVA and joint venture partners JCU
(Canada) Exploration Company Limited and DAEWOO International Corporation
announced the commencement of a two-year feasibility study and the regulatory
process to obtain the necessary approvals for a uranium mine and mill complex
on the Kiggavik deposits (See AREVA News Release dated December 3, 2007).
AREVA reports a resource estimate of 148 million pounds of uranium at an
average grade of 0.24% U (0.28% U308). The
Kiggavik deposits (Kiggavik, End, Andrew Lake and Jane) also contain
significant quantities of gold and platinum.
About
Forum Uranium
Forum Uranium Corp. is a Canadian-based energy
company with a focus on the acquisition, exploration and development of
Canadian uranium projects in the Athabasca Basin, Saskatchewan and the Thelon
Basin, Nunavut. Forum has assembled a highly experienced team of exploration
professionals with a track record of mine discoveries for unconformity-style
uranium deposits in Canada. The Company has a strategy to discover near
surface uranium deposits nearby existing infrastructure by exploring on its
100% owned properties and through strategic partnerships and joint ventures.
ON BEHALF
OF THE BOARD
Richard
J. Mazur, P.Geo.
President
& CEO
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
For further information contact:
Timea Carlsen
Director of Corporate Relations
FORUM URANIUM CORP.
910-475 Howe Street
Vancouver, BC V6C 2B3
Tel: 604-638-3949
Fax: 604-689-3609
Email: info@forumuranium.com
Website: www.forumuranium.com
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