Company News
Bancroft Uranium Inc. Closes $3.0 Million Financing for Development of Monmouth Uranium Project in Canada Friday November 30, 4:51 pm ET
SCOTTSDALE, AZ--(MARKET WIRE)--Nov 30, 2007 -- Bancroft Uranium Inc. (OTC BB:BCFT.OB - News) is pleased to announce the signing of a $3.0 million financing. The Company agreed to sell Secured Convertible Debentures to an institutional investor for the gross proceeds of $3.0 million. The debentures were purchased for a 20% discount to their face value of $3.75 million and are convertible into common shares at the holder's option at a fixed price of $0.25 per share. The investor is also entitled to common stock purchase warrants at an exercise price of $0.30 per share for 15,000,000 shares. The debentures require repayment with interest at 8.0% per annum over the next 24 months unless converted by the holders. The use of proceeds will fund future exploration activities on the Company's uranium projects by bringing historical work into modern compliance standards.
Encouraged by the recent rise in the price of uranium to over $135 per pound, Bancroft Uranium Inc. has assembled a portfolio of uranium projects that includes the Monmouth Uranium Project. Monmouth is located in Central Ontario, Canada, a 1.5-hour drive north of Toronto, near Gooderham, Ontario. The Monmouth Uranium Project is significant to the Company due to the historical work that has been performed.
Uranium was discovered at Monmouth in the early 1950s. The operators at that time conducted surface trenching across approximately 1,000 feet that showed grades 0.14% U3O8 (2.8 lbs per ton) over 35 trenches and had limited follow-up drilling. A trenching and drilling program was completed in the late 1960s that included a qualifying report by S.W. Evans for the owner at that time, Northern Nuclear in 1968. The geology at Monmouth is comprised of uranium crystals disseminated in an altered limestone (skarn) with a thickness 15-60 feet. This skarn horizon has been mapped for a length of 6,000 feet. Only 1,500 feet of the strike length has been explored to some detail. All historical drill holes cut uranium mineralization ranging from 1/10 pound to over 6 pounds of uranium per ton.
Previous operators estimated from drilling the potential of 2 million tons containing 0.045% (0.9 pounds per ton) or 1,800,000 pounds of U3O8. The Monmouth Uranium Project is open along strike to the northeast and southwest and down dip to the southeast. The Company believes that the low cost mining factors due to proximity to infrastructure, combined with the 1970 metallurgical test that shows 80 plus percent recovery by simple gravity separation, demonstrate a potential for a reliable low cost producing uranium deposit.
The Company anticipates that, due to the scope of limited work in the 1950s and 1960s, the Monmouth Uranium Project has the potential to expand on the estimates of previous operators. Bancroft is currently finishing a prospecting, geological mapping and surface trenching with channel saw sampling program at this time. The $500,000 work program has been underway since May 2007. The Company is planning the Phase 1 surface diamond drilling program at Monmouth to be undertaken in January 2008 designed to bring the historical work into modern 43-101 compliance.
ABOUT BANCROFT URANIUM INC. (OTC BB:BCFT.OB - News)
Bancroft Uranium Inc. is an exploration Company which intends to develop uranium assets in North America. Bancroft's initial asset, the Monmouth Uranium Project is envisioned to have the potential of a low cost, open pit uranium producer located close to infrastructure and end product buyers.