NEWS RELEASE
Advanced Explorations Receives Update on $5 Million Convertible Debenture Financing through XinXing Pipes Group (TSX VENTURE:AXI) (FRANKFURT:AE6) TORONTO, ONTARIO--(Marketwire - Jan. 10, 2012) - Advanced Explorations Inc. (the "Company" or "AEI") is pleased to provide a status update with respect to its previously announced $5 Million convertible debenture financing (the "Financing") involving strategic partner XinXing Ductile Iron Pipes Co. Ltd. ("XDIP"), (as press released October 31, 2011).
XDIP has advised AEI that it proposes to establish a specific
purpose, wholly-owned Hong Kong based subsidiary for purposes
of completing the Financing transaction. In a press release
dated January 7th, 2012, XDIP indicated that the
Hong Kong company will serve as a platform for the successful
completion of the Financing and will also help facilitate the
development of the Roche Bay Iron Project. The formation of
this subsidiary is necessary to obtain required Chinese
government consents and approvals, and XDIP is confident in
securing same in a timely manner. In addition, the proposed
change is subject to the receipt of any required stock
exchange and
corporate approvals in Canada. AEI is currently seeking such
approvals.
John Gingerich, President and CEO, commented:
"We are very pleased with the demonstrated commitment of
XDIP to complete the Convertible Debenture financing as
quickly as possible and appreciate the efforts of our Partner
in resolving this bottleneck. This approach appears to be the
best solution for ensuring a timely closure of the Financing
and will also help in facilitating our future development
plans. In the meantime, AEI will continue to move forward
with the Feasibility Study and work with XDIP on moving the
Roche Bay Project toward production".
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 east
coast of the Melville Peninsula in Nunavut, Canada giving it
many logistical advantages.
The project has an indicated resource of 323 million tonnes
with 226 million tonnes in the inferred category, 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
and the potential for rapid advancement into development of
either iron concentrate or high value iron nugget products. A
feasibility study is currently underway that is examining a
concentrate start-up operation of 5 million tonnes per year.
Future expansions will consider additional concentrate and/or
iron nuggets as envisaged in the PEA filed on SEDAR. 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.
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.
For further information: (416) 203-0057 x226
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