Advanced Explorations Concludes Memorandum of Understanding With China Xinxing Pipes Group Co. Ltd.
TORONTO, ONTARIO -- (Marketwire) -- 07/19/10 -- Advanced Explorations Inc. (the ´Company´ or ´AEI´) (TSX VENTURE: AXI)(FRANKFURT: AE6) is pleased to announce that it has concluded a memorandum of understanding (´MOU´) with China based Xinxing Pipes Group Co. Ltd. (´XXP´). 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 approval, the MOU sets out an option for XXP to initially acquire 19% of the Company´s issued and outstanding common shares by way of private placement at a price equal to or greater than $0.25 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 August 30th, 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 CEO, 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 cooperating with AEI. The Companies are jointly assessing the various startup 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 startup 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.
AEI further announces that, pursuant to the Company´s Stock Option Plan approved at the June 16, 2010 Annual General Meeting and subject to TSX Venture Exchange approval, it intends to issue a total of 775,000 options to directors and consultants at a price of $0.17 per common share exercisable in whole or in part on or before five years from the date hereof.
ON BEHALF OF THE BOARD
John Gingerich, President & CEO
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company focused on developing high quality iron ore opportunities. Currently, the company holds interests in projects located in Nunavut with low infrastructure needs. The Roche Bay magnetite project is located on the coast and is bolstered by a deep water access to its eastern coast. The Company intends to build upon logistical benefits when developing its current projects at Roche Bay and Tuktu. AEI plans to produce high quality iron products from the 357 million tonnes inferred resource of the project´s C-Zone. Its preliminary economic assessment for the project indicates a potential US $2.76 billion net present value, a minimum of 50 years mine life and a return on investment between three and five years. Led by an experienced management team with technical, exploration and mining expertise the company has the capabilities to rapidly advance the Roche Bay and Tuktu Projects and explore other local and global opportunities.
This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not 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.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Advanced Explorations Inc.
(416) 203-0057 x226