Wits Basin PR
Wits Basin Executes Contract to Purchase the Bates-Hunter Gold Mine
WEDNESDAY, JULY 26, 2006 7:32 AM
- BusinessWire
MINNEAPOLIS, Jul 26, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc., (WITM) announced today it has entered into an agreement to purchase the project known as the "Bates-Hunter" mine located Colorado. Vance White, CEO of Wits Basin stated, "The future of this project looks very promising for the Company. With the current price of gold above $600 per ounce, we believe this mine could produce significant cash flow for the Company. This purchase will be accomplished primarily with a Cnd$6.5 million mortgage carried by the seller. This five percent interest mortgage is similar to a "cash flow mortgage" meaning that principal payments will not be required unless the mine goes into production. Additionally, the Company will pay Cdn$250,000 (to be held in escrow until the final closing) and will issue 3.62 million shares of its unregistered common stock that will remain issued and outstanding only if there is production from the mine. This is an extremely favorable structure for our shareholders." Finally, White commented, "This is very positive for the Company and a vote of confidence from the seller expressing its belief in the project's ability to move into production." The final closing is subject to customary due diligence and other closing conditions.
AI
