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Related Quotes Sym. Price Chg. WITM Trade News 1.15 -0.04 Wits Basin Enters into a Letter of Intent to Acquire Second PRC Mining Property
Mar 27, 2007 07:27:02 (ET)
MINNEAPOLIS, Mar 27, 2007 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM, Trade ) is pleased to announce that it has entered into a letter of intent to purchase an initial 51% interest in Chang Jiang Mining Company Limited ("Chang Jiang") which owns the exploration rights of Lao Wan Iron Deposit in Yuan County, Hubei Province ("Lao Wan") located in the People's Republic of China ("PRC"). Wits Basin retains the right to earn an additional 44% for a total interest of 95%. Completion of this transaction is subject to various other conditions, including completion of definitive documentation.
About Chang Jiang Mining Company Limited
Chang Jiang owns the exploration rights of Lao Wan Iron Deposit. This Deposit covers approximately 17.78 square kilometers in Yuan County, Hubei Province in the PRC. Construction of a processing plant to produce iron ore concentrate is underway with anticipated production for 2007 to be approximately 200,000 tons of concentrate. A smelting plant to produce pig iron is also being planned.
Drilling of the first phase on this Deposit has been completed and the second phase of drilling is scheduled to be complete this summer.
Chang Jiang claims that the total tons at this location are significantly greater than the tons available at Maanshan Mining.
On March 13, 2007, Wits Basin announced it had entered into a letter of intent to purchase 100% of Maanshan Mining. Maanshan Mining is comprised of two operating iron mines - the Xiao Nan Shan Iron Deposits and the Ma Tang Iron Deposits. Maanshan Mining estimates that the total iron ore available for extraction from the two mines is approximately 95 million tons.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three 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. (WITM, Trade ) 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.
SOURCE: Wits Basin Precious Minerals Inc.
Wits Basin Vance White, Chairman, 866-214-9486 or Wits Basin Stephen King, CEO, 612-490-3419 or Lighthouse Communications 866-739-0390 info*lhcom.bz
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