Widespread's Asian Minerals announces $5.9m private placement
/New Zealand Exchange Limited
P.O. Box 2959
Wellington
27 November 2009
Dear Sir,
Widespread’s Asian Minerals announces proposed private placement
Asian Mineral Resources (“ASN”) is Widespread’s largest investment. This 6.5% shareholding (presently held at independent valuation) represents 55.4% of Widespread’s total assets.
ASN made the announcement below in Canada last night. This is very good news as it provides significantly more certainly that the company will survive and proceed with the Ban Phuc nickel mine development.
Although Widespread is participating the bulk of the funding is being provided by two other existing major shareholders, Malaysian Smelting and Asian Lion.
Although trading volumes were small, the ASN price increased 50% to 15 cents after the news release.
For and on behalf of the Board,
Chris D Castle
Onekaka
27 November 2009
ASIAN MINERAL RESOURCES ANNOUNCES PROPOSED PRIVATE PLACEMENT AND BOARD APPOINTMENT
Toronto, Ontario – November 25, 2009. Asian Mineral Resources Limited (the “Company”)(ASN-TSX Venture) announced today its intention to complete a non-brokered private placement of up to 59 million units, with each unit consisting of one common share and one whole warrant to purchase a common share at $0.15 for 12 months from its issue date. The subscription price of $0.10 a unit will result in gross proceeds of $5.9 million. Full exercise of the warrants would produce an additional $8.9 million of equity funding. Approximately 86.4% of the issue will be purchased by the Malaysia Smelting group and Asian Lion Limited. Finalization of the transaction is subject to definitive documentation, TSX Venture Exchange approval for the private placement and disinterested shareholder approval of the required waiver under the Corporation’s Shareholder Rights Plan and the creation of Malaysia Smelting as a new control person for regulatory purposes.
To ensure that the Corporation has sufficient working capital pending receipt of the proceeds of the Units Malaysia Smelting will agree to make available up to $375,000 of unsecured advances. Application will be made to TSX-V to convert any such advances to Units having an aggregate price, at $0.10 a Unit, equal to the principal and interest under the debt facility in the event the financing is not completed. The number of Units to be issued in such event will not exceed what is currently permitted by the Corporation’s Shareholder Rights Plan.
The Company also announced today that Mr. William Howell has been appointed to the board of directors as the nominee of the Dragon group. Mr. Howell is a director of Triple Plate Junction Plc, an AIM listed company with gold mining properties in Vietnam. He has extensive experience in mineral exploration and development projects in South East Asia and elsewhere.
“We are delighted to be able to announce that a number of existing shareholders have demonstrated their support for the Company and our Ban Phuc nickel Project by agreeing to provide this substantial equity capital infusion and that Malaysia Smelting has agreed to make short term funding available should it be needed pending completion of the financing,” commented Chairman Jim Askew. “We are also delighted that Bill Howell has joined our board to give us the benefit of his extensive experience in Vietnam and elsewhere in South East Asia.”
Company Profile:
Asian Mineral Resources Limited is developing the Ban Phuc Nickel/Copper Project in Vietnam 5 hours drive north-west of Hanoi in which it has a 90% interest.
For further details on the Company and the Project, please refer to the website at www.asianminres.com or contact:
Paula Kember, CFO
120 Adelaide Street West, Suite 2500
Toronto, ON M5H 1T1
T: 416 360 3412
F: 416 367 1954
Rob Guest, CEO
#9 Nguyen Hong Road
Ba Dinh District, Hanoi
Vietnam
T: +84 4 3773 7997
F: +84 4 3773 7996
Email: info@asianminres.com
Forward-Looking Statements
This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources Limited’s expectations are disclosed under the heading "Risk Factors" and elsewhere in Asian Mineral Resources Limited documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
