Asia Broadband said that its wholly owned subsidiary Asia Metals has initiated the finalization of a joint venture deal for the large scale expansion of its mining operations in the Mexican state Guerrero.
Image: Operations at a mine. Photo: courtesy of etaphop photo/ FreeDigitalPhotos.net.
Subsequent to the signing of a Letter of Intent (LOI) for the joint venture with a Chinese holding company and an evaluation due diligence period, there is agreement from both parties to move forward with the joint venture agreement.
The key terms of the agreement are a $34 million capital commitment allocated over a 3 year period, a $5 million initial payment within 30 days of signing the final agreement and a $12 million minimum capital outlay in 2019.
The final binding and operating terms of the agreement are expected to be defined and consented to within a 45 day period. The joint venture capital will be allocated to significantly expand the identified resources within the Asia Broadband properties and build out a new production processing facility with greater efficiency and capacity.
Asia Broadband president and CEO James Gilbert said: “The completion of the joint venture agreement in the coming weeks will be a powerful synergy for us at this time with the availability of significant expansion capital in combination with our resource delineating drill program.
“We are thrilled with the progress we made through the summer months to bring everything together to this point.”
Source: Company Press Release