VANCOUVER, BRITISH COLUMBIA - AsiaBaseMetals Inc. ("AsiaBaseMetals" or the "Company") (TSX VENTURE:ABZ) is pleased to announce that, pursuant to an executed letter of intent, the Company has agreed to terms for the acquisition by the Company of a 90% interest in a 16.5 square kilometer (km2) (currently in the process of being expanded to 55 square km2) potash exploration property (the "Vientiane Potash Project") located in the Huaxieng -- Xaithany area of Vientiane province, Laos.
The consideration payable by the Company to acquire the 90% interest in the Vientiane Potash Project will be up to an aggregate of C$4,000,000 in cash payments and the issuance of up to an aggregate of 22,000,000 common shares, payable in stages on completion of specific financing, resource and engineering studies, mine development and construction milestones.
In November 2006, The World Bank stated the following with respect to Laos: "Potash Rock Salt - As with gypsum, potash rock salt occurs in the evaporite of the Upper Cretaceous, and its distribution is confirmed to be large in Vientiane and Savannakhet provinces. Potash salt deposits in Vientiane and Savannakhet sedimentary basins are large in Laos. Thickness of the deposit in Savannakhet province was confirmed to be 70-85m at drill holes (DGM-INTERGEO, 2005). The resource of potash salt may be as high as 50 billion t." (Reference: The World Bank Trust Fund: #030670 - Final Report for Economic Geology FR-2, Sector Plan for Sustainable Development of the Mining Sector in the Lao PDR -- Section 4.5.3, dated November 2006.)
Raj Chowdhry, President and CEO of AsiaBaseMetals stated "Potash is one of the key components of fertilizer and with China, India and Indonesia representing three of the largest markets for agricultural products in the world, and located on the doorstep of Laos, Management believes that the Vientiane Potash Project represents a world class opportunity for AsiaBaseMetals."
The transaction is subject, among other things, to the parties entering into a definitive agreement on or before October 30, 2011 and standard conditions in favor of the Company including the vendor obtaining required consents, the Company being satisfied with the results of its due diligence and approval of the TSX Venture Exchange. There can be no assurance that the transaction will be completed as proposed or at all.
A finder's fee will be payable by the Company if the transaction is completed, subject to TSX Venture Exchange approval.
ON BEHALF OF THE BOARD OF DIRECTORS
Raj Chowdhry, C.A., President & CEO
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the acquisition by the Company of an interest in the Vientiane Potash Project constitute "forward-looking statements" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain regulatory approval of the proposed acquisition and is otherwise able to complete the proposed acquisition. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, delays in obtaining or inability to obtain required regulatory approvals and inability to complete the proposed acquisition. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Philippe Van Nieuwenhuyse