Advanced Explorations Closes Initial $2.8 mm Private Placement with Shandong Fulun Steel
TORONTO, ONTARIO -- (Marketwire) -- 11/03/10 -- Advanced Explorations Inc. (the 'Company' or 'AEI') (TSX VENTURE: AXI)(FRANKFURT: AE6) is pleased to announce the closing of the $2,800,000 private placement with Shandong Fulun Steel Co., Ltd. ('Fulun Steel') as press released on September 30, 2010. This private placement is part of a broader cooperation commitment. AEI is in receipt of $2,800,000 and has issued 7,000,000 Units at $0.40 per Unit in the capital stock of AEI to Fulun Steel.
Each Unit consists of one (1) common share and one (1) non-transferable common share purchase warrant exercisable within four months from the closing date of the Offering. Fulun Steel shall be entitled to convert each whole warrant to one (1) common share of the Company at the exercise price of $0.55 per common share. Conditional on the exercise of all warrants by Fulun Steel it will earn the right to 19% of the off-take on iron products. The warrant exercise would raise an additional $3,850,000.
John Gingerich, President and CEO, commented:
'The agreement with Fulun Steel allows us additional scope in our development options. With the closing of this private placement, we have strengthened our relationship with Fulun Steel and can now aggressively pursue a broader growth strategy for the Company. Our primary focus is to rapidly advance our current portfolio of projects and add new projects that can immediately impact shareholder value. While the Company is committed to a core business in iron ore, our partners have encouraged that AEI examine other strategic international commodity opportunities.'
Finder's fees totaling $224,000 in cash and 420,000 compensation warrants at an exercise price of $0.55 per share have been paid in connection with this placement in accordance with the policies of the TSX Venture Exchange. All common shares issued and issuable upon any warrant exercises are subject to a hold period expiring on March 4, 2011.
ON BEHALF OF THE BOARD
John Gingerich, President & CEO
ABOUT Advanced Explorations Inc.
Advanced Explorations Inc., based in Toronto, Ontario, is a resource development company that currently focuses on developing its flagship Roche Bay Project, in one of the world's largest developing iron ore districts. The project is located proximal to a natural deep water harbour on the coast of the Melville Peninsula in Nunavut, Canada giving it many logistical advantages. The project has an inferred resource of 357 million tones, outlined within a small portion of the 140 km of banded iron formation. This iron formation incorporates the Roche Bay deposits, the Company's Tuktu deposits and other targeted deposits in areas to the north, south and west of the Company's Roche Bay Project. The preliminary economic assessment from the Roche Bay deposit alone indicates a potential net present value of US $1.1 billion, and the potential for rapid advancement into development of either iron concentrate or high value iron nugget products. The management team has extensive technical, exploration and Canadian Arctic mining expertise to effectively develop the high quality iron ore opportunities on the Melville Peninsula.
ABOUT Shandong Fulun Steel Co. Ltd.
Shandong Fulun Steel Company Limited is a private company united with mineral, metallurgy, casting and forging, manufacturing, new materials and coke industry. The company has more than 7000 employees and the fixed assets are 15.8 billion yuan. Fulun Steel has experience continued growth over recent years of almost 100%. The total revenue of Fulun Steel in 2009 was approximately $1.85 billion. With another 1680 m3 furnace ready for production in the fourth quarter of this year, the total iron and steel capacity of Fulun will reach 8 million tonnes a year.
This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED WITHIN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Advanced Explorations Inc.
(416) 203-0057 x226