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Show Whitelock Uranium Co. Purchases Most Of Seven Mile Uranium Mine Near Moab The Board of Directors of Whitelock Uranium Company this weekj announced to their stockholders that they had acquired ac-quired a 55 per cent interest, in the Seven Mile uranium mine, a long time producer of uranium ore north of Moab. The interest was acquired ac-quired from Mr. Vance Thorn-burg, Thorn-burg, Phoenix, Ariz., and represents rep-resents Mr. Thornburg's entire en-tire interest in the property. The acquisition was made through a transfer to Mr. Thornburg of shares previously prev-iously held by certain principal princi-pal shareholders of the company. com-pany. The Seven Mile mine is located lo-cated in Grand County, some twelve miles north of Moab. The property was first opened open-ed for production in 1S49. Mr. Thornburg purchased the mine in 1950 and has mined it continuously con-tinuously since that time. Production Pro-duction from the mine has yielded approximately $2 million mil-lion worth of uranium oxide; and, while the property consists con-sists of some 112 claims, mining min-ing and development have covered only two claims to date, according to Whitelock. The property is subject to two mortgages in the amount of $373,000. The larger mortgage mort-gage is to Cotter Corporation under an ore purchase agreement agree-ment and amounts to approximately approx-imately $334,00 0. It is payable pay-able out of production at 50 cents per pound of recovered uranium oxide and runs until March. 15, 1976. Mr. Thornburg Thorn-burg has agreed to assume all responsibility for .the re- maining mortgage and will pay and discharge it as it becomes due. An ore purchase agreement with Cotter Corporation of Roswell, N.M. was signed in 1966 and remains in effect. It calls for the purchase cf ore by Cotter at 3.50 per pound for up to 1 million pounds of uranium oxide. The contract stipulates a 90 per cent recovery factor, and the ore is, processed at both the Cotter reduction center at Canyon City, Colo., and the Atlas Minerals plant at Moab, Mo-ab, the report said. Cotter Corporation is presently pres-ently the operator of the mine under an agreement whereby they carrv tire burden bur-den of all production costs and receive 70 per cent of the net mill receipts. Fifty-five Fifty-five per cent of thirty per cent will accrue to Whitelock. Whitelock Uranium Company Com-pany is headquartered in Phoenix, Ariz. |