Advanced Explorations Inc. Announces $5,000,000 Debenture
TORONTO, ONTARIO -- (Marketwire) -- 10/31/11 -- Advanced Explorations Inc. (the 'Company' or 'AEI') (TSX VENTURE: AXI)(FRANKFURT: AE6) announced today that it has entered into an agreement with XinXing Ductile Iron Pipes Co. Ltd. ('XinXing') involving a $5,000,000 convertible debenture (the 'Debenture') to be provided as a non-brokered private placement financing (the 'Financing').
John Gingerich, President & CEO, commented:
'This commitment by XDIP to AEI's Roche Bay Project demonstrates our partner's confidence in our Company and assets. Our 2010 Agreement, which was approved by our shareholders, allows XDIP to acquire a 19% interest in AEI, and this debenture represents the potential to increase XDIP's ownership in AEI from approximately 14% to 19%. The Company believes this no-interest Debenture and the commitment to a higher conversion price reflects the ongoing positive relationship between the two Companies.'
The Financing follows the execution by the Company and XinXing of the previously disclosed Framework Agreement in 2010, providing for the completion of feasibility assessments to bring the Company's Roche Bay project to commercial operation.
The Debenture will be non-interest bearing, have a term of 24 months from the date of initial advance of funds, and be convertible prior to maturity and repayment at any time in whole or from time to time for common shares at a conversion price of $0.45 per common share. If fully converted, the Debenture would result in the issuance of 11,111,111 common shares.
The proceeds from the Financing will be used for advancing AEI's Roche Bay Feasibility Project and other general corporate purposes.
The Debenture may be converted at the discretion of XinXing on the earlier of June 1, 2012 or upon the filing by the Company of a definitive feasibility report with respect to its Roche Bay Project.
The Financing is subject to certain conditions including, but not limited to, the receipt of all necessary corporate and regulatory approvals, including the approval of the TSXV.
Advanced Explorations will be attending the 'German Commodities Conference' at the Hermann Josef Abs Saal (booth 23) in Frankfurt on Wednesday, November 2nd where CEO John Gingerich will be part of a panel discussion at 4:45 p.m. discussing 'Copper, Iron and Nickel - the infrastructure commodities'. On November 4th and 5th, Advanced Explorations is going to exhibit at the 'International Precious Metals & Commodities Show' at the Event Arena/Olympiapark (booth 1.80) in Munich and has been invited to present at 11:50 a.m. on Friday, November 4th. Additional information is available on the Company's website at www.advanced-exploration.com.
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 its Roche Bay Iron Ore Project in Nunavut, one of the world's largest developing iron ore districts. The Roche Bay Project is located proximal to a natural deep water harbour on the east coast of the Melville Peninsula in Nunavut, Canada giving it many logistical advantages. The project has an indicated resource of 323 million tonnes, outlined within a small portion of the potential 140 km of banded iron formation. This iron formation incorporates the Roche Bay deposits, the Company's Tuktu deposits and other targeted deposits in areas to the north, south and west of the Company's Roche Bay Project. The preliminary economic assessment from the Roche Bay deposit alone indicates a potential net present value of US $1.1 billion and the potential for rapid advancement into development of either iron concentrate or high value iron nugget products. A feasibility study is currently underway that is examining a concentrate start up operation of 5 million tonnes per year. Future expansions will consider additional concentrate and/or iron nuggets as envisaged in the PEA filed on SEDAR. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.
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
www.advanced-exploration.com