Widespread's Asian Minerals advises revised corporate strategy
Asian Mineral Resources ("ASN") is Widespread's largest investment, presently representing 36.8% of total assets.
ASN made the announcement below in Canada last night. This development is good news as it should ensure that the company will survive the present extreme market conditions and eventually be in a position to continue the Ban Phuc development and to take advantage of other opportunities that may present themselves.
For and on behalf of the Board,
Chris D Castle
Onekaka, 4 November 2008
TORONTO, ONTARIO--(Marketwire - Nov. 3, 2008) - Asian Mineral Resources Limited ("AMR" or the "Company") (TSX VENTURE:ASN) announced today that it has adopted a corporate and operating strategy whereby:
- Most of the activity being undertaken at the Company's Ban Phuc Nickel Project, with the objective of a spring 2009 start-up, will be suspended.
- The Project (including a recently completed vertical ore pass) will be placed on a care and maintenance basis.
- Expenditures will be reduced to preserve corporate functionality and existence until mid-2009 without additional cash infusion other than a substantial VAT refund.
- The Project model will be revised to reflect a later start-up date and other considerations.
- Discussions will continue with the Vietnamese government regarding a number of issues and with potential providers of the finance required for Project completion and other activities.
"While we are disappointed not to be in a position to proceed with Ban Phuc Project development and other activities as originally planned, we are in the fortunate position of having sufficient cash resources to implement the new strategy," commented Mr. Collin Ellison, the President of AMR. "We have been impacted adversely by factors affecting mineral project development worldwide and also by issues specific to Vietnam that require resolution if we are to achieve our original objectives. We and our Vietnamese joint venture partner, Coxama, will be meeting shortly to discuss the implementation of the new strategy as it relates to the Ban Phuc Project."