WITM is exploding on merger news right now. Now, why is this going to be a TEN-bagger? Because of THIS news!
Wits Basin Updates Current Developments Related to Merger Progress and Acquisition of China Mining Properties Tuesday February 20, 7:13 am ET
MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB:WITM - News) is pleased to bring current information to our shareholders relating to the planned merger with Easyknit and potential acquisition of existing cash flow properties in the People's Republic of China ("PRC").
The Planned Merger
In its February 5, 2007 press release, the Company announced its intention to merge with Easyknit Enterprises Holdings Limited pursuant to an exchange of stock. That exchange contemplates granting 21 shares of Easyknit stock for each share of Wits Basin. The actual value of the Easyknit stock to be received by the Wits Basin shareholders will depend upon the Easyknit stock price at the time of closing, as well as the US-Hong Kong dollar exchange rate at that time. The values calculated in the example below assume the Hong Kong market and Easyknit shares remain in their respective values. However, as an example, if the closing had occurred on February 16, 2007, the value could be calculated as follows:
Easyknit shares 21 Easyknit closing price on Hong Kong Stock Exchange on February 16, 2007(a) x HK$2.170 ---------- Total value = HK$45.57 Hong Kong/US conversion rate on February 16, 2007(b) / 7.8124 ---------- Price per share of Wits Basin Precious Minerals Inc. in US Dollars = US$5.83 ==========
Certain Board Members and representatives of management are now planning a return trip to Hong Kong in March, which they believe will allow for the finalization and execution of the definitive documents. Out of respect for the Chinese New Year, the planned date of execution of the definitive documents is now expected to be on or before March 31, 2007.
Company management is currently working with the depository trustee to commence meeting the requirements of the ADR program. The ADR program will enable our North American shareholders to have a North American exchange available to them to buy and sell their respective shares after completion of the merger. The Company intends to implement the ADR Program in conjunction with the merger.
The Planned Acquisition of PRC Mining Properties
The proposed joint venture with SSC Mandarin Financial Services Ltd (SSC) announced on February 7, 2007, is expected to yield qualified prospects in various PRC mining properties and exploration opportunities including gold, zinc, nickel, iron ore, and bauxite. SSC has taken the members of the Board of Directors and management on site visits to the PRC to review potential candidates for acquisition. Wits Basin Chairman Vance White released the following statement regarding these potential acquisitions:
"Our Company is very grateful for the opportunity to form a joint venture with SSC. Their significant ground work, efforts and relationships in the local PRC markets over the last five or six years helps create an environment where we expect to find some very attractive mining properties in the PRC to acquire. To date, we have investigated at least five projects that appear to meet our criteria, including mining properties that are in production and have positive cash flow. We are starting to carry out in-depth due diligence on these projects."
The SSC and Wits Basin joint venture is not conditional on the merger of Easyknit Enterprises Holdings Limited nor is the merger dependent on the joint venture.
Posts: 36 | Registered: May 2006
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I must be missing something here. dont know why this is not already much higher. WITM Market cap: $ 61.95M Shares out: 96.80M
EASYKNIT Ent. Market Cap: 8.56B Hong Kong $'s/ 7.8 = $1.1B US
If the deal goes through WITM shareholders own 43% of merged company. based on that should be about a 10 bagger from here. like i said though, i must be missing something, as the market is usually pretty fast at determining the true value on "real" mergers. (who knows if this is a "real" one???? )
Posts: 36 | Registered: May 2006
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Read (books, info about charts, etc) and watch how they behave before you put too much money in...
This one actually looks pretty good. Read the tag line of the post above yours from 10of13 - she is a very smart lady! Keep an eye on how much you paid out and how much you would have if you sold right now. Since you are very close to a 50% profit, I would likely sell at least half and put that capital back in your account. Then, if you want to get back in, wait for it to go back down.
An example...it went up to about 1.15 then back down to 1.00. When you saw it start to go down, that would have been a good time to sell, since you bought at .85, then, you could have bought back more shares with your profits at the 1.00ish level. Make sense? But, keep in mind you can only day trade a single stock 3 times in a 5 business day period.
-------------------- Study before you buy, Sell before you think about it.... Posts: 3903 | From: Gulf Coast | Registered: Jun 2006
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Entry into a Material Definitive Agreement, Financial Statements
Item 1.01. Entry into a Material Definitive Agreement. On February 19, 2007, Wits Basin Precious Minerals Inc. (the "Company") entered into an employment agreement with William Green reflecting the terms of Mr. Green's employment with the Company as President of Asia Operations. The term of the agreement is for a period of three years, and is terminable by either party with one year written notice. Under the agreement, Mr. Green is entitled to a base salary of $10,000 per month and standard benefits provided by the Company to its management team. Additionally, the Company has agreed to pay Mr. Green an advance of $10,000 and reimburse him for certain expenses in excess of such amount relating to his relocation to Hong Kong. The Company further issued Mr. Green a ten-year option to purchase 2,500,000 shares of the Company's common stock at an exercise price of $0.43 per share, the fair market value of the Company's common stock on the date of grant. The option shall vest in three installments as follows: (i) with respect to 1,000,000 shares at such time Mr. Green relocates to Hong Kong and establishes a home office for the Company in Hong Kong; (ii) with respect to an additional 500,000 shares on (A) the earlier of the first anniversary of the effective date or (B) the achievement of a milestone, as determined by the Board of Directors or (C) the termination of Executive's employment with the company; and (iii) with respect to the remaining 1,000,000 shares on the earlier of (A) the time the Company achieves certain performance criteria to be established by the Company's board of directors or (B) the third anniversary of the option grant. The Company entered into a stock option agreement with Mr. Green dated February 19, 2007 memorializing the terms of the option grant and providing other standard option terms. The employment agreement further provides standard confidentiality and one-year non-competition and non-solicitation provisions. Mr. Green is a sibling of Andrew Green, a significant shareholder and creditor of the Company.
The foregoing is qualified in its entirety by reference to the employment agreement and the stock option agreement, which are being filed as Exhibits 10.1 and 10.2, respectively, to this Current Report on Form 8-K; and such exhibits are incorporated herein by reference
On February 23, 2007, in consideration of a $700,000 loan to the Company from Andrew Green, a significant shareholder of the Company, the Company issued a promissory note in the principal amount of $700,000 to Mr. Andrew Green. The promissory note has a maturity date of March 31, 2007, and bears interest at a rate of 6% per annum. Under the terms of the note, in the event the aggregate principal and interest due under the note is not paid on or before March 31, 2007, either the Company or Mr. Andrew Green may convert the remaining obligation under the note into the payment by Mr. Andrew Green of an exercise price relating to all or any portion of (i) outstanding warrants held by Mr. Andrew Green to purchase up to 3,550,000 shares of the Company's common stock (the "Warrants"), and (ii) an outstanding right held by Mr. Andrew Green to purchase up to 3,000,000 shares of the Company's common stock at a price per share of $0.20 (the "Right"). Under the terms of the note, and as additional consideration for the loan, the Company reduced the exercise price of the Warrants from $0.12 to $.09125 and extended the expiration date of the Right from March 31, 2007 to December 31, 2007.
The foregoing is qualified in its entirety by reference to the promissory note issued to Mr. Andrew Green, which is being filed as Exhibit 10.3 to this Current Report on Form 8-K; and such exhibit is incorporated herein by reference
Item 9.01. Financial Statements and Exhibits. (d) Exhibits
Exhibit Description of Document 10.1 Employment Agreement between the Company and William Green dated February 19, 2007 10.2 Stock Option Agreement between the Company and William Green dated February 19, 2007 10.3 Promissory Note dated February 23, 2007 issued in favor of Andrew Green.
Posts: 14 | From: Indiana | Registered: Feb 2007
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Wits Basin Adds Management for China Mining Properties Wits Basin Precious Minerals Inc. (OTCBB:WITM) is pleased to announce the appointment of William B. Green to the position of President for a wholly-owned subsidiary to be established for the acquisition of mining properties in China.
As previously announced, the Company is currently completing due diligence on several different properties in the PRC. Mr. Green’s role will be to assist the Company in connection with PRC property acquisitions, and to interface with the vendors and managers of those properties at an operations level. Wits Basin CEO Stephen D. King released this statement:
“Our company is fortunate to have Mr. Green join our team. His hands-on experience of more than 15 years living and working in China and Asia is a great asset. His ability to speak fluent Mandarin will be extremely beneficial to our process of working to acquire the previously announced potential acquisitions.”
About Mr. William B. Green:
Mr. Green is a graduate of the University of Pennsylvania’s Wharton School of Business. He has lived and worked in Asia and led efforts to establish joint venture partnerships on behalf of American Standard Companies Inc. and Kohler Industries.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in five exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol “WITM.” To find out more about Wits Basin Precious Minerals Inc. (OTCBB:WITM) visit our website at www.witsbasin.com.
Forward-Looking Statements and Risk Factors
The statements included in this press release concerning predictions of economic performance and management’s plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. These risks and uncertainties include, among others, the Company’s ability to obtain or maintain regulatory approvals; the Company’s ability to obtain necessary financing; the Company’s ability to enter into and meet all the conditions to consummate the proposed merger agreement, and other risks and uncertainties described in the Company’s filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.
In addition, the exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves in connection with any of our projects and any estimates relating to possible reserves are subject to significant risks. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves already discovered and recovered by others in the same region of the planned areas of exploration. Further, the cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks we face are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report on Form 10-KSB, quarterly reports on Form 10-QSB and reports on Form 8-K.
Wits Basin Precious Minerals Inc. Vance White, Chairman, 416-587-7323 Stephen King, CEO, 612-490-3419 or Lighthouse Communications, 866-739-0390 info*lhcom.bz
Source: Business Wire (February 26, 2007 - 8:52 AM EST)