LAS VEGAS, July 10, 2018
LAS VEGAS, July 10, 2018 /PRNewswire/ -- Asia Broadband Inc. (OTC: AABB), through its wholly owned subsidiary Asia Metals Inc., has signed a Letter of Intent (LOI) with a Chinese holding company pursuant to finalizing the terms of a joint venture agreement for the large scale expansion of the Company's mining operations in the state of Guerrero, Mexico. The LOI specifies an exclusivity clause and a timeline of up to 90 days to conduct sufficient verifications, evaluations and other due diligence activities prior to agreeing to the terms of a joint venture. Most significantly, the prospective partnership will require a minimum commitment of $30 million over the next 3 years, in phased expenditures, allocated to significantly expand the identified resources within the Asia Broadband properties and build out a new production processing facility that has much greater efficiency and capacity.
During the recent negotiations with multiple Asian investment groups, the LOI company aligned best with Asia Broadband by possessing synergistic corporate goals. Under further terms of the prospective partnership agreement, expanded metals production would be guaranteed future sales for Asia Broadband and a long-term secured supply to the joint venture partner. More specifically associated to gold, the joint venture company has been seeking avenues to satisfy a consumer and industrial gold fabrication demand, as well as an institutional or investment gold demand. In general, the benefits of physical gold holdings and future guaranteed supplies of gold are an investment hedge that mitigates the risk of instabilities caused by fluctuations in world economic conditions.
