Wits Basin Precious Minerals Inc. (OTCBB: WITM) is a minerals exploration and development company with interests in three exploration projects. The company today announced a joint-venture partnership with a leading international mining and development company for the steel industry, London Mining Plc.
Subject to due diligence and finalization of definitive documentation, the two companies will enter into a 50/50 joint venture partnership for Wits Basin’s iron ore, a project located near Maanshan, Anhui Province in the People’s Republic of China. Wits Basin CEO Stephen D. King said London Mining’s knowledge in the iron industry will benefit both companies. The company has iron ore and coal mining development projects in Saudi Arabia, Greenland, South Africa, Sierra Leone and Mexico.
“We are thrilled to be able to finance this revenue-producing and cash flow-positive project with London Mining,” King stated in the press release. “London Mining has focus on and expertise in the iron ore industry and we are excited to be uniquely positioned in acquiring this proven China-based iron ore business. Based on current iron ore spot pricing and the drill-indicated resources, we believe this project will be cash-flow positive in excess of US$30 million in the first 12 months of operation.”
Per the agreement, London Mining would provide US$45 million in exchange for a 50-percent equity interest in the project. London Mining would have appropriate board representation as well as customary and expected ownership rights in the joint venture. Following completion of acceptable due diligence the parties believe they can close the transaction within six weeks.
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Wits Basin Precious Minerals Incorporated engages in the exploration and development of mineral properties in South Africa, Mexico, and Colorado. The company is based in Minneapolis, MN and was formerly known as Active IQ Technologies when it was originally founded in 1992. Wits 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. It also holds an option to acquire interests in a nickel mining property and three iron ore mining properties located in the People’s Republic of China.
Wits Basin holds interest in the FSC project, a gold exploration project located adjacent to the Witwatersrand basin in South Africa. The FSC project is currently underway and incorporates several hundred thousand acres of some of the most prolific gold-producing land known to man. The company holds 35% interest in the FSC project, which cost a little over $2.1 million, but has the right to acquire an additional 15% interest for an additional $1.4 million. The prospecting has already begun, and several teams of geologists and miners have begun drilling the South African terrain looking for its famous gold reefs.
Wits Basin is lead by a team of professionals that combine for over 150 years of experience in the business. This team has knowledge from both a business and mineral standpoint, and has experience with prior mineral projects and mining companies. The board of directors has lead the company to creating its diverse portfolio of projects around the globe, and has it poised for success as the price of commodities, especially metals, continues to rise.
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