AsiaBaseMetals Amends Letter of Intent to Acquire Control of Majority Interest in Potash Project in Laos

AsiaBaseMetals Inc. ("AsiaBaseMetals" or the "Company") (TSX VENTURE:ABZ) is
pleased to announce that the letter of intent announced on September 1, 2011,
pursuant to which the Company agreed to terms for the acquisition of an indirect
90% interest in the Vientiane Potash Project, has been amended.


The Vientiane Potash Project currently consists of a 16.5 km2 potash exploration
property located in the Huaxieng - Xaithany area of Vientiane province, Laos. 


The amendments to the letter of intent provide for an alternate, deferred
payment structure if the vendor has expanded the property with an additional 39
km2 of contiguous mineral rights for a total of 55 km2, within one year of the
closing of the transaction and at no additional cost to the Company.


Under either payment structure, the maximum aggregate consideration payable by
the Company to acquire the 90% interest in the Vientiane Potash Project, if all
milestones are achieved, will be C$4,000,000 in cash payments and the issuance
of 22,000,000 common shares. If the property is expanded by the vendor on the
terms set out above, the consideration will be payable in stages on completion
of specific financings, resource reports and feasibility studies and mine
construction milestones. If the property is not expanded by the vendor, the
consideration will be payable only if later-stage milestones related to the
preparation of a feasibility study and mine construction is achieved. The
maximum aggregate consideration has not been changed. 


The transaction remains subject to, among other things, approval of the TSX
Venture Exchange, required consents being obtained, the Company being satisfied
with the results of its due diligence and the parties entering into a definitive
agreement. The date by which the definitive agreement must be entered into has
been extended by the amendments to the letter of intent.


A World Bank report, dated November, 2006, stated the following with respect to
Laos: "Potash Rock Salt - As with gypsum, potash rock salt occurs in the
evaporite of the Upper Cretaceous, and its distribution is confirmed to be large
in Vientiane and Savannakhet provinces. Potash salt deposits in Vientiane and
Savannakhet sedimentary basins are large in Laos. Thickness of the deposit in
Savannakhet province was confirmed to be 70-85m at drill holes (DGM-INTERGEO,
2005). The resource of potash salt may be as high as 50 billion t." (Reference:
The World Bank Trust Fund: #030670 - Final Report for Economic Geology FR-2,
Sector Plan for Sustainable Development of the Mining Sector in the Lao PDR -
Section 4.5.3, dated November 2006.)


Raj Chowdhry, President and CEO of AsiaBaseMetals, stated: "Having recently
visited the Vientiane Potash Project in Laos earlier this year, I am pleased to
state that this Potash project is a great opportunity for AsiaBaseMetals. Since
Potash is one of the key components of fertilizer and with China, India and
Indonesia representing three of the largest markets for agricultural products in
the world, and located on the doorstep of Laos, Management believes that the
Vientiane Potash Project represents a world class opportunity..."


ON BEHALF OF THE BOARD OF DIRECTORS

Raj Chowdhry, C.A., President & CEO

Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this
release, including statements regarding the acquisition by the Company of an
interest in the Vientiane Potash Project constitute "forward-looking statements"
within the meaning of Canadian securities legislation. In making the
forward-looking statements in this release, the Company has applied certain
factors and assumptions that the Company believes are reasonable, including that
the Company is able to obtain regulatory approval of the proposed acquisition
and is otherwise able to complete the proposed acquisition. However, the
forward-looking statements in this release are subject to numerous risks,
uncertainties and other factors that may cause future results to differ
materially from those expressed or implied in such forward-looking statements.
Such uncertainties and risks include, among others, financing risks, delays in
obtaining or inability to obtain required regulatory approvals and inability to
complete the proposed acquisition. There can be no assurance that such
statements will prove to be accurate, and actual results and future events could
differ materially from those anticipated in such statements. Readers are
cautioned not to place undue reliance on forward-looking statements. The Company
does not intend, and expressly disclaims any intention or obligation to, update
or revise any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by law.
AsiaBaseMetals (TSXV:ABZ)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024