Advanced Explorations Extends Roche Bay Royalty Buy-Out Terms
TORONTO, ONTARIO -- (Marketwire) -- 03/16/11 -- Advanced Explorations Inc. (the 'Company' or 'AEI') (TSX VENTURE: AXI)(FRANKFURT: AE6) is pleased to announce that it is in negotiations with Roche Bay plc. ('Roche Bay') in respect to the Company's right to buy out the royalty retained by Roche Bay on AEI's Roche Bay and Tuktu Projects. In good faith, the parties have agreed to extend the deadline to conclude an amendment to their Royalty Agreement (as press released on April 1st and July 20th, 2009) and allow each other additional time to finalize the necessary reviews and approvals to proposed amendments. The deadline has been changed from March 15, 2011 to April 1st, 2011. Any amendments, including this extension, remain subject to TSX Venture Exchange approval.
John Gingerich, President and CEO, commented:
'The Company has remained focused on advancing its Roche Bay flagship project. With the Feasibility Study underway, we continue to examine ways to enhance shareholder value. AEI has enjoyed a long standing good relationship with Roche Bay plc. We are very pleased to continue our negotiations for a possible revised agreement that would be mutually beneficial.'
Benjamin Cox, President of Roche Bay plc. and Roche Bay East Limited, commented:
'Given our strong belief in the Roche Bay project, we feel this extension will provide both parties with a meaningful opportunity to finalize additional royalty buy-out terms. We have a good relationship with AEI's management and pride in the Roche Bay project which we believe will benefit both parties in the future.'
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.
Contacts:
Advanced Explorations Inc.
(416) 203-0057 x226