Hong Kong firm acquires majority interest in Powertech's proposed uranium mining project near Nunn

Powertech Uranium Corporation, based in Vancouver, B.C., announced Aug. 1 that Hong Kong-based Azarga Resources Limited has agreed to make a strategic investment in and form strategic alliances with Powertech. Azarga recently purchased approximately 17.5 percent of the issued and outstanding common shares in the capital of Powertech.

In addition, Azarga has agreed to purchase a 60 percent interest in Powertech’s Centennial Project proposed uranium mining project — located near Nunn in Weld County — for a total purchase price of $1,500,000 to be paid over two years. Powertech will retain a 40 percent interest in the property.

Upon payment of the full purchase price, a joint venture will be formed between Powertech and Azarga for the exploration and development of the property and Azarga will act as operator of the joint venture. Azarga has no current plans to develop the property and intends to focus on reviewing the property for exploration and development potential. Closing of the purchase is subject to, among other things, receipt of all necessary approvals including disinterested approval of the shareholders of Powertech and approval of the Toronto Stock Exchange.

Azarga is a privately held uranium investment firm and is the only significant uranium investment and development vehicle based in Asia. Azarga’s focus is to generate uranium-linked investment returns for Asian investors.

Richard Clement, president & CEO of Powertech stated “We are pleased to have Azarga as a strategic investor who shares our vision on the development of Powertech. Azarga’s thorough understanding of the uranium markets will provide support and added value to the company. Their positioning in Asia will provide enhanced access and exposure to those markets.”

Powertech and Azarga have also agreed to form strategic alliances pursuant to the Private Placement Agreement. In particular, the parties have agreed to share data and expertise and Azarga has agreed to provide advisory services to Powertech and to use its best efforts to support any equity financings undertaken by Powertech.