Advanced Explorations Announces Shandong Fulun Steel Exercises Right to Off-take Agreement on Roche Bay Iron Project
TORONTO, ONTARIO -- (Marketwire) -- 03/02/11 -- Advanced Explorations Inc. (the 'Company' or 'AEI') (TSX VENTURE: AXI)(FRANKFURT: AE6) is pleased to announce that it has received an exercise request from Shandong Fulun Steel Company ('Fulun Steel') for its 7,000,000 warrants as part of the framework agreement between the two companies (Press Release September 29, 2010) at a price of $0.55. With the exercise of the warrants, Fulun Steel is securing its right to a 19% off-take agreement on iron product from the future Roche Bay mine.
John Gingerich, President and CEO, commented:
'We are very pleased that Fulun Steel is securing its off-take right on future product from Roche Bay. The exercise demonstrates their confidence in the AEI team taking the Roche Bay project to production. Our relationship with Fulun Steel compliments that of our partner XinXing Pipes Group. We continue to investigate opportunities for Fulun Steel to partner with AEI on other projects'.
Mr Liu Ji An, Vice-Chairman, General Manager of Shandong Fulun Steel Co. Ltd., commented:
'Advanced Explorations has worked closely with Fulun Steel over the last several months. Securing production off-take from Roche Bay is an important part of our future supply requirements. We have a good relationship with AEI management and hope we can expand our business relationship in the future.'
AEI is well funded, and - outside of the Feasibility Program - plans to commit up to $7 million to other exploration campaigns including; drilling dedicated to increasing the resource base at Roche Bay and Tuktu, a drilling program for the Alaska Iron Sands Property as well as to the assessment of the West Melville nickel-copper, copper-gold, silver and molybdenum prospects. The Company anticipates using its additional funds for project contingency and/or new acquisition opportunities.
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 focused on its Roche Bay Iron Ore Project in Nunavut, one of the world's largest developing iron ore districts. The Roche Bay 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 tonnes, outlined within a small portion of the potential 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. Together with its Chinese partner XinXing Pipes Group, Advanced Explorations is completing the feasibility study on Roche Bay, targeting a rapid advancement into start-up concentrate production. 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.
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.
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Contacts:
Advanced Explorations Inc.
(416) 203-0057 x226