VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 16, 2007) - Consolidated Abaddon Resources Inc. (TSX VENTURE:ABN)(FRANKFURT:E2L)("Consolidated Abaddon" or "the Company") is pleased to announce that it has entered into an Option Agreement with Rubicon Minerals Corp. (TSX:RMX) (Rubicon) for the acquisition of a 100% interest in the Pukaskwa uranium properties totaling approximately 102,720 acres located in the Algoma Mineral District, Sault Ste. Marie Mining Division, northwestern Ontario.
Pukaskwa Uranium Project Location Map:
http://www.consolidatedabaddon.com/i/maps/ABN-Pukaskwa-Area.jpg
The Pukaskwa uranium properties consist of 4 claim blocks; Denis Lake (23,360 acres), White River (23,360 acres), Esnagi Lake (33,600 acres), and McCrea Lake (19,520 acres). The claim areas staked were chosen based on the results of an Airborne Gamma Ray and in-lake sediment surveys that clearly identifies 4 strong radiometric anomalies.
Pukaskwa Project Claims Map:
http://www.consolidatedabaddon.com/i/maps/ABN-Pukaskwa-Area-Map.jpg
The Company's claims demonstrate potential for a major structural flexure marked by a magnetic signature that correlates well with the radiometric anomalies. The area is underlain by late Archean intrusive rocks, felsic volcanics and sedimentary rocks of probable Proterozoic age.
Pukaskwa Project Gamma Ray Airborne Anomalies Map:
http://www.consolidatedabaddon.com/i/maps/ABN-Pukaskwa-airborne.jpg
Consolidated Abaddon plans to conduct an extensive exploration program to prove out the geology and resource potential of the area.
Rubicon Minerals has granted to Consolidated Abaddon the exclusive right and option to acquire an undivided 100% interest in the Pukaskwa uranium properties for cash payments equivalent to Rubicon's cost of staking the properties (estimated to be approximately $200,000) plus 10%, and further cash payments in the amount of $165,000 and the issuance of 200,000 common shares of Consolidated Abaddon over the 4 year term of the Option Agreement. The agreement is subject to a 2% net smelter return royalty (NSR) in favour of Rubicon. Consolidated Abaddon may purchase 50% of the NSR for $1,000,000.
Rubicon Minerals has retained a Back-In Right Agreement for the right to earn an undivided 20% interest in and to the Pukaskwa uranium properties within a period of 30 days following the first anniversary of the TSX Venture Exchange approval by agreeing to pay an amount equivalent to 300% of the amount of property expenditures incurred to that date.
The Pukaskwa Properties Option Agreement is subject to TSX Venture Exchange approval.
In other news, Denison Mines has informed the Company that it will not be continuing with its option agreement to acquire a 51% interest in the Company's Sims Lake property in western Labrador announced February 23, 2006.
Also, Consolidated Abaddon has elected to drop its Gabbro Lake property in western Labrador, as the Company feels results to date do not warrant further exploration.
Consolidated Abaddon Resources Inc. is a Canadian uranium exploration company actively involved with the development of uranium properties in the ATHABASCA BASIN of northern Saskatchewan, SIMS BASIN of western Labrador, and the ALGOMA DISTRICT of northwestern Ontario.
Property partners include Denison Mines Corp. and Triex Minerals Corp.
For further information on Consolidated Abaddon Resources Inc. (TSX VENTURE:ABN), visit the Company's web site at www.consolidatedabaddon.com.
ON BEHALF OF THE BOARD OF DIRECTORS
DONALD C. HUSTON, Director
This press release does not constitute an offer to sell, or a solicitation of an offer to sell, any of the foregoing securities in the United States. None of the foregoing securities have been and, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FOR FURTHER INFORMATION PLEASE CONTACT:
Consolidated Abaddon Resources Inc.
Donald C. Huston
Director
(604) 687-3376 or Toll Free: 1-800-567-8181
Consolidated Abaddon Resources Inc.
Don Myers
Director
(604) 687-3376 or Toll Free: 1-800-567-8181
(604) 687-3119 (FAX)
Email: info@consolidatedabaddon.com
Website: www.consolidatedabaddon.com
