WITM news Wits Basin Enters into a LOI to Acquire PRC Mining Property
Tuesday March 13, 6:13 am ET
MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB:WITM - News) is pleased to announce that it has entered into a letter of intent to purchase a 100% interest in "Maanshan Mining" (as described below) located in the People's Republic of China (PRC). Maanshan Mining estimates its 2007 free cash flow will be in excess of US$15,000,000.
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Wits Basin has obtained a financing commitment for up to US$20,000,000 to be used as a down payment on the purchase. The balance of the purchase price is to be paid for in equity securities upon completion of the merger with Easyknit Enterprises Holdings Limited (SEHK: 616 - News). The final terms of the equity issuance will be based upon completed due diligence but is estimated to be less than five percent of the outstanding share balance of the merged companies. Consummation of the purchase will require shareholder approval and is subject to various other conditions, including completion of definitive documentation.
The timing for the submission to shareholders for a vote will occur after March 31, 2007 in order to allow completion of definitive merger documents with Easyknit as well as completion of required due diligence on the Maanshan Mining properties.
About Maanshan Mining
Maanshan Mining is comprised of two operating iron mines-the Xiao Nan Shan Iron Deposits ("Xiao Nan Shan") and the Ma Tang Iron Deposits ("Ma Tang"), and a processing
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