Widespread's Asian Minerals signs nickel offtake deal with Jinchuan
/Widespread's Asian Minerals signs nickel offtake and subscription agreement with Jinchuan
Asian Mineral Resources ("ASN") is Widespread's largest investment, representing 70.4% of total assets at its present market value of Cdn $1.45 a share.
ASN announced last night in Canada that that its 90% subsidiary, Ban Phuc Nickel Mines LLC ("BPNM") has entered into an Offtake Agreement with Jinchuan Group Ltd. ("Jinchuan") to sell Jinchuan all nickel concentrates produced during the estimated five-year life of mine of its initial Ban Phuc project and has granted Jinchuan first refusal rights on additional nickel concentrates that BPNM may produce.
ASN also announced that it has entered into a Subscription Agreement with Jinchuan whereby Jinchuan will purchase, subject to Chinese government and TSX-V Exchange approvals and the satisfaction of typical conditions, 4,000,000 units at Cdn $1.75 a unit for aggregate proceeds of Cdn $7 million.
Each unit consists of one ASN common share and one warrant to purchase a common share for Cdn $2.10 exercisable until September 30, 2008. Exercise of the warrants would yield further proceeds of Cdn $8,400,000, bringing Jinchuan's total investment in AMR to Cdn $15,400,000.
The board of Widespread Portfolios regards this as another significant milestone achieved by ASN. Not only does this agreement secure an outlet for the Ban Phuc Mine nickel output, but it provides a significant portion of the remaining funding needed to bring the mine and plant into production.
It's notable that, once again, a major investor with an encyclopaedic knowledge of the nickel industry is prepared to pay a significant premium over the current ASN market price to gain a major stake in the company.
As the third largest shareholder in ASN, Widespread Portfolios is well positioned to benefit from the appreciation in the ASN share price when other investors finally get the message.
The complete ASN announcement follows.
For and on behalf of the Board,
Chris D Castle
Onekaka, 6 May 2008
ASIAN MINERAL RESOURCES LIMITED - JINCHUAN OFFTAKE AND SUBSCRIPTION AGREEMENTS
Toronto, Ontario - May 5, 2008. Asian Mineral Resources Limited ("AMR" or the "Company")(ASN-TSX Venture) announced today that its 90% subsidiary, Ban Phuc Nickel Mines LLC ("BPNM") has entered into an Offtake Agreement with Jinchuan Group Ltd. ("Jinchuan") to sell Jinchuan all nickel concentrates produced during the estimated five-year life of mine of its initial Ban Phuc project and has granted Jinchuan first refusal rights on additional nickel concentrates that BPNM may produce.
ASN also announced that it has entered into a Subscription Agreement with Jinchuan whereby Jinchuan will purchase, subject to Chinese government and TSX-V Exchange approvals and the satisfaction of typical conditions, 4,000,000 units at Cdn $1.75 a unit for aggregate proceeds of Cdn $7 million. Each unit consists of one ASN common share and one warrant to purchase a common share for Cdn $2.10 exercisable until September 30, 2008. Exercise of the warrants would yield further proceeds of Cdn $8,400,000, bringing Jinchuan's total investment in ASN to Cdn $15,400,000.
"These agreements with Jinchuan as a customer and as an investor in our Ban Phuc Project are the culmination of close liaison with Jinchuan over several years as the Project progressed through technical studies and Vietnamese approvals," commented Jim Askew, ASN's Chairman. "The agreements constitute an important element of bringing the Project into production in the first half of 2009 and adding to our ability to finance both the Project and our recently commenced regional exploration programme."
Company Profile:
Asian Mineral Resources Limited is developing the Ban Phuc Nickel/Copper Project in north-western Vietnam in which it has a 90% interest. The Project is scheduled for commercial concentrate production in the first half of 2009.
