Mega Uranium to absorb Monster Copper (March 19, 2007)

Vancouver — In a combination of larger-than-life adjectives, Mega Uranium (MGA-T, MGAFF-O) is moving to acquire Monster Copper (MNS-V, MCPRF-O).

Terms of the proposed amalgamation under a binding letter of agreement would see Monster shareholders receive one Mega Uranium share and half a warrant for every six common shares held. Each full Mega Uranium warrant would be exercisable at $7.00 apiece for five years.

The prize for Mega is Monster Copper’s portfolio of prospective iron-oxide copper-gold (IOCG) projects in Labrador’s Central Mineral Belt, north-central Brazil and in the Yukon.

Monster’s Mustang Lake project in Labrador, a joint venture with Santoy Resources (SAN-V, SANRF-O), is situated within Aurora Energy Resources’ (AXU-T, AUEGF-O) land package about midway between the advanced explorer’s Michelin and Jacques Lake uranium deposits.

Monster’s Brazilian project package — which consists of a 60% interest in 10 separate IOCG-prospective properties totalling about 800 sq. km in Carajas Mineral Province — was optioned from Noranda, now part of Xstrata (XSRAF-O, XTA-L), in late 2004. The area also holds decent nickel laterite potential.

Mega’s acquisition will boost its footprint in a number of significant IOCG camps with a specific focus on uranium mineralization.

Based on Mega’s 10-day volume-weighted average trading price ending March 7, the deal values Monster at $1.09 per share plus the half-warrant. Up to 7.9 million Mega shares could be issued under the planned transaction in addition to 3.95 million warrants.

Over the past couple of years, Mega has grown into a significant uranium explorer through a series of corporate acquisitions. The company’s Australian holdings host a combined resource of more than 47 million contained pounds U3O8. It also has uranium exploration projects in Argentina, Mongolia, Bolivia and Canada.

Shares of Monster Copper rallied 42% on the news, closing up 32 at $1.09 apiece on trading volume of more than 4.3 million. Based on its 33.5 million shares outstanding, the targeted junior posts a $36-million market capitalization and has a 52-week trading range of 26-$1.20.

Mega Uranium slipped almost 4% following the announcement, closing off 22 at $5.90 per share. It has an $845-million market capitalization based on its 143.2 million shares outstanding. The stock has traded between $2.29 and $7.49 over the past year.