NEWS RELEASE
(TSX Venture Exchange Trading Symbol: THU)
THUNDER SWORD RESOURCES INC. ANNOUNCES LETTERS OF INTENT TO INCREASE INTEREST AND FACILITATE CONSOLIDATION OF 74,000 HA OF ATHABASCA BASIN URANIUM PROPERTIES
Vancouver, BC, September 25 , 2007 – Thunder Sword Resources Inc. (‘Thunder Sword’ or the ‘Company’) (TSX.V: THU), is pleased to announce it has entered into Letters of Intent (‘LOI”) with Midwest Uranium Corporation (“Midwest”) and 101073531 Saskatchewan Co. (‘Saskco’), whereby the Company will increase its vested interest in 74,772 Ha of mineral claims in the Athabasca Basin, in Saskatchewan, Canada, from approximately 22% to 25%.
The Company will also facilitate consolidation of the claims by permitting Midwest to acquire up to a 75% working interest in 40,398 hectares of mineral claims, and up to a 49% working interest in the remaining 34,374 hectares of mineral claims. The interest to be acquired by Midwest in the latter 34,374 claim block may be increased to a 75% interest subject to the performance of Tribune Resources Corp. (“Tribune”) which has an option to acquire a 51% in such claims upon its completion of a $3 million expenditure program by October 1, 2008.
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In addition to acquiring a majority or controlling interesting the subject claims, it is intended that Midwest will assume from Saskco, the management and operation of the ongoing exploration programs on the mineral claims, including the planned 4000 meter “phase 1” drilling on the area known as the Botham Lake Prospect, which is expected to begin in mid to late October, 2007.
Under the terms of the LOI the vesting of the Company’s additional interest is conditional on the Company relinquishing its option from Saskco to acquire a further 26% interest in the claims as provided for in the Company’s earlier option agreement with Saskco. The Company has agreed to such relinquishment on the condition that Saskco agrees to sell and transfer to Midwest, both the 26% relinquished interest held by the Company and the remaining 49% interest held by Saskco in such claims.
Following the completion of the purchase by Midwest, the Company and Midwest have agreed to a reorganization that would consolidate the entire interest in the 74,772 Ha claim block held by Midwest and the Company. Any such reorganization will require both shareholder and regulatory approvals and must be completed within 180 days form the date of the LOI. Upon the completion of the proposed transaction, it is intended that the shareholders of Thunder Sword will own 25% and the shareholders of Midwest will own 75%, of the issued and outstanding shares of the newly combined corporate entity.
During the term of the letter of intent, Midwest will assume the obligations of the Company to pay the required expenditures under the option agreement granted to the Company by Saskco.
In the event the amalgamation does not proceed within the proposed 180 day period, then the Company will continue to retain the right to proceed with its earlier held option to acquire an additional 26% interest in such claims. In the event that the reorganization does not proceed within the required 180 day period, due to the non–approval of the transaction by Thunder Sword shareholders, then the Company will be required to reimburse Midwest for any monies paid on its behalf under the option agreement. Otherwise, the Company will not be required to reimburse Midwest for the funds expended, and the Company will receive credit from Saskco. for the funds paid by Midwest. Subject to these credits and credits for money expended by Tribune, Thunder Sword will still be required to expend the balance of its existing obligation of $4 million in funds on such claims by December 31, 2008, in order to acquire the additional 26% interest.
Midwest and Saskco have agreed to complete the final form of agreement as between them by November 1, 2007 and thereafter proceed with Thunder Sword towards implementing the reorganization within a 180 day period from the date of the LOI.
The management of Thunder Sword is excited by this planned consolidation of interest in the subject properties, as it will allow the parties to undertake a more focused and expedited program of exploration and development on the group’s key Athabasca Basin Uranium properties.
A complete “Operational Update” on the above-noted Athabasca Basin Uranium Projects is expected shortly.
About Thunder Sword Resources Inc.
Thunder Sword, with the planned vesting of interest and the consolidation of its uranium claims, will be primarily focused on operating under license, the Geermu project which produces high purity magnesium chloride in China. Additionally Thunder Sword holds and operates the Pipe Lake gold property situated in Ontario which consists of 42 claims.
Forward Looking Statements
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and contents of upcoming work programs, geophysical, geological interpretations, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ substantially from those currently anticipated in such statements. Thunder Sword Resources relies on litigation protection for forward-looking statements.
“ Matty Goldstein”
Matty Goldstein, Director
For more information please contact:
(604) 682-4429
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.
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