Wealth Enters Into LOI to Sell Argentinean Uranium Projects to Crosshair Energy Corporation
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2012) - Wealth Minerals Ltd. (the "Company" or "Wealth") - (TSX VENTURE:WML)(OTCQX:WMLLF)(FRANKFURT:EJZ), announces that it has entered into a Letter of Intent ("LOI") with Crosshair Energy Corporation, a public company headquartered in Vancouver, BC, to sell Crosshair all of Wealth's prospective uranium properties in Argentina.
The consideration for the sale of the properties is payments to Wealth of CAD 1.0 million in cash (less the amount of any outstanding liabilities associated with the sale properties and assumed by Crosshair) and the issuance to Wealth of one million Crosshair common shares. The cash payments and share issuances will be done over a two year period, with CAD 300,000 and 750,000 Crosshair shares due on closing. In addition, Wealth retains a 1% yellowcake royalty on all uranium production and a 1% NSR royalty on all other minerals.
Henk Van Alphen, Wealth's Chief Executive Officer and President, stated "The sale to Crosshair will allow us to focus our efforts on growing Valsequillo and acquiring additional silver projects, while still retaining participation in the upside of our prior work in Argentina through our shares of Crosshair and the royalty."
Completion of the transaction is subject to a number of conditions, including Toronto Stock Exchange and NYSE MKT acceptance on behalf of Crosshair, the completion of due diligence on the properties by Crosshair and the negotiation and execution of a definitive agreement. There can be no assurance that the transaction will be completed as proposed or at all.
The Company also reports that Jeffrey Pontius has submitted his resignation as a director of the Company, effective October 31, 2012, in order to devote the time necessary in his position as CEO of Corvus Gold Inc. The Board would like to take this opportunity to thank Mr. Pontius for his years of service on behalf of the Company.
About Wealth Minerals Ltd.
Wealth is an early stage mineral exploration company with listings on the TSX Venture, OTCQX and Frankfurt Stock Exchanges.
For further details on the Company readers are referred to the Company's web site (www.wealthminerals.com) and its Canadian regulatory filings on SEDAR at www.sedar.com.
On Behalf of the Board of Directors of WEALTH MINERALS LTD.
Hendrik Van Alphen, President & CEO
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the anticipated content, commencement and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the terms of and proposed completion of the sale to Crosshair, the timing of future activities by the Company, the potential for the Company to acquire additional silver properties and the anticipated business plans of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company or any of its joint venture partners are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the commodity markets generally, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the inability of Crosshair to secure the required regulatory acceptances to complete the acquisition of the Argentina properties, the inability of the Company to obtain any necessary permits, consents or authorizations required for its activities, the inability of the Company to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's latest interim Management Discussion and Analysis and filed with certain securities commissions in Canada. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.
FOR FURTHER INFORMATION PLEASE CONTACT:
Wealth Minerals Ltd.
604-331-0096 Ext. 1429 or 604-638-1429