MINNEAPOLIS--(BUSINESS
WIRE)--Wits Basin Precious Minerals Inc. (OTCBB:WITM)
is pleased to announce that it has completed its
acquisition of China Global Mining Resources, a
British Virgin Islands corporation ("CGMR").
About China Global
Mining Resources
CGMR owns rights in certain acquisition agreements
relating to gold, nickel and iron ore mining
properties in the People's Republic of China ("PRC").
The producing gold property, known as the Tongguan
County Taizhou Gold Mining Co., Ltd., is located in
the Shaanxi province. The nickel property is the
Xing Wang Nickel Mine located in the Qinghai
province. The Lao Wan Iron Deposit is located in the
Hubei province. The operating Xiaonanshan iron ore
mine is located in Maanshan in the Anhui province.
CGMR has been approved by the Anhui government to
operate a wholly owned foreign enterprise, commonly
known as a "WOFE", which is necessary in order to
operate in the PRC.
To date, Wits Basin has loaned a total of
approximately US $8 million to CGMR, which has been
used to invest in the above-mentioned PRC projects.
Financing
Currently contemplated project financing consists of
a $15 million remaining balance on the Company's
discretionary line of credit from China Gold, LLC
based in Kansas City. While the Company has received
proposals from other sources for additional project
financing, nothing has been formally agreed upon and
any such financing remains subject to negotiation
and execution of definitive documentation and other
customary closing conditions.
These potential
funding sources include several domestic and
international hedge funds and banks. The required
due diligence is in an advanced stage and the
Company believes it will be completed in the near
term. The Company continues to pursue several
additional avenues of obtaining capital, including
joint ventures, equity financing, direct investment,
and other partnerships. The Company is optimistic
that it will secure adequate funding to complete
each of these projects.
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About
Wits Basin Precious Minerals Inc.
We are a minerals exploration
and development company holding interests in three
exploration projects and currently do not claim to
have any mineral reserves on any project. Our common
stock trades on the Over-the-Counter Bulletin Board
under the symbol "WITM." To find out more about Wits
Basin Precious Minerals Inc. (OTCBB:WITM)
visit our website at
www.witsbasin.com.
Forward-Looking
Statements and Risk Factors
The statements included in this press release
concerning predictions of economic performance and
management's plans and objectives constitute
forward-looking statements made pursuant to the safe
harbor provisions of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of
the Securities Act of 1933, as amended. This press
release contains forward-looking statements that
involve risks and uncertainties that could cause
actual results to differ materially. Such statements
are valid only as of today, and we disclaim any
obligation to update this information. These
statements are subject to known and unknown risks
and uncertainties that may cause actual future
experience and results to differ materially from the
statements made. These statements are based on our
current beliefs and expectations as to such future
outcomes. These risks and uncertainties include,
among others, the Company's and CGMR's ability to
obtain or maintain regulatory approvals; the
Company's ability to obtain necessary financing; the
Company's ability to consummate the Easyknit merger;
the Company's and CGMR's ability to complete the
various mining project acquisitions in the People's
Republic of China, which are subject to execution of
final documentation, completion of due diligence and
receipt of necessary financing; and other risks and
uncertainties described in the Company's filings
from time to time with the Securities and Exchange
Commission (the "SEC"). The Company disclaims any
obligation to update its forward-looking statements.
In addition, the exploration for and development of
mineral deposits involves significant financial
risks, which even experience and knowledge may not
eliminate, regardless of the amount of careful
evaluation applied to a process. While the discovery
of a mineral deposit may result in substantial
rewards, few properties are ultimately developed
into producing mines. Moreover, we cannot make any
estimates regarding probable reserves in connection
with any of our projects and any estimates relating
to possible reserves are subject to significant
risks. Therefore, no assurance can be given that any
size of reserves or grades of reserves will be
realized. If a discovery is made, the mineral
deposit discovered, assuming recoverable, may differ
from the reserves already discovered and recovered
by others in the same region of the planned areas of
exploration. Further, the cost of exploration and
exploitation can be extensive and there is no
assurance that we will have the resources necessary
or the financing available to pursue projects we
currently hold interests in or to acquire interests
in other mineral exploration projects that may
become available. The risks we face are numerous and
detailed information regarding these risks may be
found in filings made by us with the Securities and
Exchange Commission, including our most recent
annual report on Form 10-KSB, quarterly reports on
Form 10-QSB and reports on Form 8-K.
This press release does not constitute an offer to
exchange or sell or an offer to exchange or buy any
securities. This document may be deemed to be
solicitation material in respect of the proposed
merger of Wits Basin and Easyknit.
An offer of securities in the United States pursuant
to a business combination transaction will only be
made through a prospectus which is part of an
effective registration statement filed with the SEC.
In connection with the proposed transaction,
Easyknit will file a registration statement on Form
F-4, which will include a proxy statement of Wits
Basin that also constitutes a prospectus of Easyknit,
and other documents with the SEC. Shareholders of
Wits Basin are encouraged to read the definitive
registration statement on Form F-4 and any other
relevant documents filed or that will be filed with
the SEC, including the definitive proxy
statement/prospectus that will be part of the
definitive registration statement on Form F-4, as
they become available because they contain or will
contain important information about the proposed
merger. The final proxy statement/prospectus will be
mailed to shareholders of Wits Basin. Investors and
security holders will be able to obtain the
documents free of charge at the SEC's web site,
www.sec.gov,
or from Wits Basin's Investor Relations at
Lighthouse Communications (866) 739-0390 or
info@lhcom.bz.
Participants in Solicitation
Wits Basin and its directors and executive officers
and other members of management and employees may be
deemed to be participants in the solicitation of
proxies from the shareholders of Wits Basin in
connection with the proposed merger. Information
about the directors and executive officers of Wits
Basin and their ownership of Wits Basin common stock
is set forth in its Annual Report on Form 10-KSB, as
filed with the SEC on April 16, 2007. Additional
information regarding the interests of such
participants may be obtained by reading the
registration statement on Form F-4 and proxy
statement/prospectus when it becomes available.