Widespread's Asian Minerals suspends Ban Phuc nickel mine development
Asian Mineral Resources ("ASN") is Widespread's largest investment, representing 42.4% of total assets at its present market value of Cdn $0.34 a share.
ASN made the announcement below in Canada last night.
For and on behalf of the Board,
Chris D Castle
Onekaka, 27 September 2008
Asian Mineral Resources Limited-Ban Phuc Project SuspensionTORONTO, ONTARIO--(Marketwire - Sept. 26, 2008) - Asian Mineral Resources Limited ("AMR" or the "Company") (TSX VENTURE:ASN) announced today that development activities on the Company's Ban Phuc nickel project will be suspended effective October 1, 2008. The Company has been unable, as the result of a combination of factors, including current market conditions and uncertainties regarding Vietnamese government policies on nickel concentrate exports, export tariffs, royalties and taxes, to obtain commitments to provide the financing required for project completion so as to permit work to continue as scheduled. The suspension will be implemented in a manner designed to maximize the value of expenditures to date, maximize cash conservation, minimize the costs of project completion on a delayed basis and provide AMR with a sufficient opportunity to resolve the various Vietnamese issues and to continue discussions and negotiations with potential providers of the required finance, including major shareholders.
"We are obviously disappointed not to be able to proceed with planned Ban Phuc development to achieve start-up with first production scheduled for June 2009," commented Mr. Collin Ellison, the President of AMR, "but prudence dictated that we suspend development and conserve enough of our remaining financial resources to give us time to deal with various issues and to continue our financing efforts. We still have a robust project that lacks only the ingredients of financing and the resolution of the Vietnamese issues we have identified in a manner that benefits both parties."
Asian Mineral Resources Limited is developing the Ban Phuc Nickel/Copper Project in north-western Vietnam in which it has a 90% interest.
For further details on the Company and the Project, please refer to the website atwww.asianminres.com.