Advanced Explorations signs MOU with Xinxing Pipes
2010-07-19 08:39 ET - News Release
Mr. John Gingerich reports
ADVANCED EXPLORATIONS CONCLUDES MEMORANDUM OF UNDERSTANDING WITH CHINA XINXING PIPES GROUP CO. LTD.
Advanced Explorations Inc. has concluded a memorandum of understanding with China-based Xinxing Pipes Group Co. Ltd. The parties have agreed to general terms and conditions of a proposed strategic partnership and investment that will allow XXP to acquire a significant interest in AEI and/or the Roche Bay and Tuktu projects.
Subject to TSX Venture Exchange approval, the MOU sets out an option for XXP to acquire initially 19 per cent of the company's issued and outstanding common shares by way of a private placement at a price equal to or greater than 25 cents per share. The initial acquisition would also include a seat on the AEI board of directors. XXP is expected to complete its due diligence by Aug. 30, 2010, and work together with AEI to conclude the terms for its strategic investment.
In addition to the strategic investment, XXP and AEI will jointly determine project development plans that are to be financed through the XXP partnership.
John Gingerich, president and chief executive officer, commented: "The Xinxing Pipes Group is one of the world's largest producers of steel pipes with expertise across the full spectrum of the iron ore and steel industries. AEI is very pleased that a company with both the financial strength and technical expertise such as XXP has expressed its strong interest in co-operating with AEI. The companies are jointly assessing the various start-up and development scenarios as part of the due diligence process. The definitive feasibility study will be the responsibility of XXP, with a likely primary focus being a start-up concentrate operation, which will substantially reduce initial capital requirements for the project. The deal is also expected to include an off-take agreement with XXP."
XXP is a state-owned enterprise located in China and, as a partner in the Roche Bay project, would remain focused on taking the project to development. AEI will also begin to assess other growth opportunities to enhance shareholder value and accelerate assessment on non-core precious metal and other mineral assets.
Pursuant to the company's stock option plan approved at the June 16, 2010, annual general meeting and subject to TSX Venture Exchange approval, the company intends to grant options to buy a total of 775,000 shares to directors and consultants at a price of 17 cents per common share, exercisable in whole or in part on or before five years from the date hereof.
We seek Safe Harbor.
Quelle: stockwatch |