Wits Basin Precious Minerals Inc. (OTC BB: WITM) holds an impressive property portfolio which includes the Vianey Silver Mine in the state of Guerrero, Mexico, and the past producing Bates-Hunter Gold Mine in Central City, Colorado that experts believe may host up to ten million ounces of gold. In addition, a large exploration program called the FSC Project is underway on several hundred thousand acres in the famed, gold-rich Witwatersrand Basin area, South Africa, the most prolific gold-producing region in the world.
Wits Basin Updates Current Developments Related to Merger Progress and Acquisition of China Mining Properties
EXCERPT; China Gold, LLC ("China Gold"),
a) Kenglo One, Ltd. Financing
On December 14, 2009, Wits Basin Precious Minerals Inc. (the "Registrant") entered into a Loan Agreement (the "Loan Agreement") with Kenglo One, Ltd. ("Kenglo"), pursuant to which the Registrant issued to Kenglo a secured promissory note in the face amount of $5,000,000 (the "Kenglo Note") in consideration of a loan to the Registrant of $4,000,000. The Kenglo Note was issued with an original issue discount of $1,000,000, and otherwise bears no interest. The maturity date of the Kenglo Note is February 14, 2011.
As additional consideration for the loan, the Registrant issued Kenglo (i) a five-year warrant to purchase 16,000,000 shares of Registrant's common stock at an exercise price of $0.10 per share (the "Kenglo Warrant") and (ii) a third-party option to purchase from the Registrant 1,299,000 shares of common stock of Standard Gold, Inc. (f/k/a Princeton Acquisitions, Inc.) held by the Registrant at a price per share of $1.00 (the "Option"). Standard Gold, Inc. is a majority-owned subsidiary of the Registrant. The Kenglo Warrant contains standard anti-dilution rights, and includes a net exercise right on behalf of Kenglo.
As a condition to the financing, Kenglo required that the Registrant grant Kenglo a security interest that was pari passu to that granted to China Gold, LLC ("China Gold"), a significant lender to the Registrant, such security interest to include a pledge of certain equity interests held by the Registrant and a security interest in Hunter Bates Mining Corporation ("Hunter Bates") and Gregory Gold Producers, Inc. ("Gregory Gold"), each of which were previously wholly owned subsidiaries of the Registrant and are parties to certain security instruments with China Gold. Hunter Bates and Gregory Gold are currently majority-owned, indirect subsidiaries of Registrant. With the consent of China Gold to grant a pari passu security interest to Kenglo, the Registrant, Hunter Bates and Gregory Gold entered into a Security Agreement dated December 14, 2009 (the "Kenglo Security Agreement") with Kenglo, granting Kenglo a security interest in all of such parties assets. Pursuant to the Kenglo Security Agreement, the Registrant pledged its equity interest in 18,584,544 shares of Standard Gold (constituting approximately 85% of the equity interest in Standard Gold), its 35% equity interest in Kwagga Gold (Barbados) Ltd., and its 50% equity interest in China Global Mining Resources (BVI) Limited ("CGMR BVI") (subject to the consent of London Mining Plc, the other 50% holder of CGMR BVI), and Hunter Bates pledged its 100% equity interest in Gregory Gold.
China is dead-set on driving the prices of rare earths through the roof.
INCLUDE NIOBIUM --- TITANIUM AND NIOBIUM VERY RARE EARTH ELEMENTS.
USE; Avionics, radar, satellites, communication devices, fiber optics, targeting systems, navigation systems, guidance systems, advanced weapons components, special munitions, reactive armor, night vision, lasers, cruise missiles, smart bombs, main battle tanks, helicopter blades, air-to-air missiles, naval propulsion systems
Electric vehicle demand for [rare earths such as] dysprosium, neodymium and praseodymium is set to grow by an average of 790% in the next five years."
There are countless applications in which there are simply no substitutes for the rare earth metals.
| Rare Earths? |
Wits Basin Current Projects
1. Our primary holding is a 35% interest in the FSC Witwatersrand-type gold project in South Africa in Kwagga Gold Limited which owns the FSC Project - Witwatersand area of South Africa with option to increase to 50% interest for an additional $1.4 million. Partnership with AfriOre Limited. Current plan is for 3 drill holes. $2.1M invested in this project to date and in mid 2006 Wits will receive a report on the initial drilling efforts and then determine any additional investment level.
2. Owns the rights to Bates-Hunter Gold Mine in Central City, Colorado, US - purchased project on 07/26/06 thru seller financed mortgage for CDN$6.5M (5% interest only, $250K escrow payment and 3.62M unregistered shares). These terms are very favorable because no principle payment is required and shares remain unregistered until the mine is in production.
BATES HUNTER DEWATERING PROJECT STATUS: 162 out of 727 feet (reported in May)
Wits Basin Website - http://www.witsbasin.com/index.html
Standard Gold Mining Resources (OTCBB:SDGR.OB), majority-owned by Wits Basin, currently controls the Bates-Hunter Gold Mine exploration project located in Central City, Colorado. The Bates vein, formerly mined in the Bates-Hunter Gold Mine, was the second gold lode discovered in Colorado and helped spark the great Colorado gold rush of the mid-1800s. The Central City mining district produced approximately 4 million ounces of gold and almost 120 million ounces of silver. Nine principal veins underlie and are controlled by the Bates-Hunter property. These veins have historically produced approximately 250,000 ounces of gold to a depth of about 500 feet
3. Options to 31.5% of mining claims in McFaulds Lake area of James Bay area near Attawapiskat, Ontario, Canada. First drill hole completed 05/01/05 with no economic value.
4. Near surface oxide zone exploration rights to 19 mining claims over 304 hectares in Holdsworth Project - Hawk Junction, Ontario, Canada. Requires $150,000 to conduct initial testing. No money has been spent on this project thus far.
5. Undivided 50% interest in certain mining rights at the Vianey Mine Concession in Gerrero State, Mexico (prior producing Silver mine).map below
6. Undisclosed portion of the volcanogenic massive sulphide (VMS) base metal projet in Northern Ontario on the Hawk-Macnugget Claims.
Hawk Uranium, Inc. has both direct or option interests in four gold and two VMS exploration properties in Ontario, Canada plus a core holding of 3.3 million shares in Wits Basin Precious Minerals Inc. (OTCBB: WITM).
Wits Basin Website - http://www.witsbasin.com/index.html
7. ProjectsXiaonanshan Mine
Project History ;
In March 2009, London Mining plc and Wits Basin Precious Minerals (OTCBB: WITM) executed a joint venture agreement to create a 50/50 ownership of the Xiaonanshan Iron Mine, the Matang iron deposit, and the Sudan concentrator plant.
The Joint Venture controls over 69 million tonnes of magnetite iron ore resources in a single deposit that can be processed with existing facilities at the Xiaonanshan mine and Sudan concentrator plants. Moreover, 22 million tonnes of additional resources are located in the nearby village of Matang; this resource is expected to support expanded operations. The operations currently have a total of 454 employees: 257 (17 staff) at Xiaonanshan and 197 (7 staff) at the Sudan concentrator plants.
General Geological Features of the Xiaonanshan ore deposit:
The Xiaonanshan iron deposit consists of fractured and brecciated andesite and diorite host rock at the upper margin of an underlying diorite porphyry intrusion. Fractures in the breccia contain dominantly magnetite with rare metallic minerals and gangue of plagioclase, actinolite, chlorite, apatite, biotite, quartz, and carbonates. The mineral magnetite (Fe3O4) contains up to 72% iron (Fe) and 28% oxygen (O2). Ore grades are quoted in total iron (TFe) and commonly average 24-27% TFe, which means that approximately 37% of the ore consists of magnetite.
A 1973 report shows a resource of 71.3 million metric tonnes (mt) grading 26.5% TFe using a cut-off grade (CoG) of 18-20% TFe. In a 2007 report, it was estimated that a total of 2.0 million tonnes had been extracted from this resource. The Xiaonanshan open pit mine is currently producing from a 3.7 million tonne portion of the resource.
Chinese Embassy in London
Ministry of Land and Resources
Steel and Iron Ore Companies in China:
Magang Steel, www.magang.com.cn/eng/
Baogang Steel, www.baosteel.com
Company Datasheet Link
Wits Basin Enters into a LOI to Acquire PRC Mining Property
Reporting Status U.S. Registered & Reporting: SEC Filer
Audited Financials Audited
Fiscal Year End 12/31
OTC Market Tier OTCQB
SIC - Industry Classification 1040 - Gold and Silver Ores
Incorporated In: MN, USA
Market Value1 $3,619,044 a/o Nov 30, 2010
Shares Outstanding 180,952,179 - Nov 12, 2010
Authorized Shares N/A
Shareholders of Record 170 a/o Apr 15, 2009
Significant Failures to Deliver Yes - Reg SHO
American Stock Transfer & Trust Company