Mar 2 2011
Advanced Explorations Inc. (TSX VENTURE:AXI)(FRANKFURT:AE6) has announced that it has received an exercise request from Shandong Fulun Steel Company 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.
Source: Advanced Explorations Inc.