The total purchase price of the property was $6m split into $2m cash and $4m in restricted shares of Asia Broadband
Asia Broadband Inc. (OTC: AABB) (“AABB” or the “Company”) is pleased to announce that it has signed a definitive purchase agreement to acquire a 100% interest in the Bonanza Gold Mine Project. The Company came to terms with Martin Augusto Vallejo Lujambio for the 19.25 hectare concession # 221977, Bonanza, located approximately 48 kms southeast from the city of Acaponeta and 3 kms from the town of El Carrizo, in Nayarit, Mexico. The total purchase price of the property was $6 million split into $ 2 million cash and $ 4 million in restricted shares of Asia Broadband Inc. The Bonanza gold project is another prospective high yield asset addition in the Company’s strategic expansion initiative to acquire gold production and increase the AABB’s physical gold holdings.
Located in the prolific mining region of Acaponeta in Nayarit, Mexico, the Bonanza property has shown high-grade gold assay results from recent samples and drilling activities with the most significant gold values of more than 10 grams per ton (g/t). Company management is excited by the Bonanza acquisition for its potential for rapid expansion, high production, low operating costs and strong contribution to gross profits
AABB continues to implement its mining property acquisition strategy to optimize development capital utilization by focusing operations in regions of Mexico where AABB has a comparative advantage of development resources and expertise readily available for rapid expansion and duplication of the Company’s previous gold production success.
Source: Company Press Release