July 18 2007 - Aguila American Resources Ltd. is pleased to announce that it has acquired an option, from an arms-length third party, to purchase an undivided 70% interest in 10 exploration permits for potential uranium bearing sequences in northwest Niger. The 10 exploration permits cover a total of 490,620 hectares (1,212,348 acres), and range in size from 48,850 hectares to 49,720 hectares (120,711 acres to 122,861 acres). Title will be delivered in approximately 2 months time.
The area covered by the ten exploration permits is located between 100km and 200km to the southwest of the mining permits held by Areva NC, the mining division of Areva, a world energy expert that offers highly reliable nuclear power generation and electricity transmission and distribution.
The exploration permits cover the same sequence of Mesozoic marine shelf and continental sediments that host the known uranium deposits controlled by Areva. These are located in the eastern portion of the Tim Mersoi Basin, where the uranium is thought to have been derived from Proterozoic basement rocks, found to the east.
The Company is compiling all data on the exploration permits and will formulate an exploration program and appropriate budget on completion of the data compilation.
In order to exercise the option, Aguila American must make a cash payment of US$75,000. Upon receipt of a notice in writing that the Government of Niger has approved the application, an additional US$150,000 becomes due within 5 business days of the Government's issue of good title. An aggregate 1,000,000 shares (100,000 shares per exploration permit) will be issued. 500,000 shares (50,000 shares per exploration permit) will be issued within 10 business days upon receipt TSX regulatory approval. The final 500,000 shares will be issued 6 months after the receipt of the Government's title certificate.
Uranium is Niger's largest export, accounting for over 70% of its export revenues. Niger is ranked as the world's fourth largest producer of uranium, after Canada, Australia and Kazakhstan. The country has two main uranium producing areas, Arlit and Akouta, situated in the north. Niger's ore-bodies are by far the richest on the African Continent,
and are comparable or higher than those mined in Australia. The country also has reserves of gold, iron ore, coal, copper, silver, platinum, vanadium, titanium and lithium. Niger produced 3,434 tonnes of uranium in 2006.
Andrew Gourlay, P. Geol., is the Qualified Person for the technical information in this news release.
On behalf of Aguila American Resources Ltd.
"John Huguet" John Huguet President & CEO
Contacts:
Aguila American Resources:
John Huguet, President and CEO, Tel: 604.681.6186, Fax: 604.681.3652
Investor Relations: Breakout Capital Corp.
Shams Patel, President, or Kyle Ashton, Tel: 604.633.0998
Email:
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This news release may contain forward-looking statements regarding upcoming work programs and events. Actual results may differ materially from those anticipated in such statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
