Wits Basin Executes Financing to Proceed With
Merger
Wednesday April 11, 9:08 am ET
MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious
Minerals Inc. (OTCBB:WITM
-
News) is pleased to announce that it has signed
definitive documents for a US$25,000,000 credit
facility from China Gold, LLC of Kansas City. The
Company has received an initial draw of $1,600,000,
which is expected to be used towards the costs
relating to the merger with Easyknit Enterprises
Holdings Ltd. Should additional funds be drawn from
this credit facility, the Company could proceed with
the proposed purchase of assets, interests and/or
options of the previously announced projects of
Nickel, Gold and Iron Ore located in the People's
Republic of China.
The terms of the
credit facility allows China Gold, LLC to convert
any debt into shares of Wits Basin common stock, at
$1.00 per share. The Company has 12 million shares
of its common stock available for conversion at this
time. The additional 13 million will require the
Company to seek shareholder approval to increase its
capital stock beyond the 150 million shares
currently available. This approval is intended to be
sought in the same proxy statement as the vote
regarding the merger with Easyknit. The Company
believes the share exchange ratio of Wits Basin
common stock for Easyknit common stock previously
announced will not be affected by this financing.
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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
-
News) 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 ability to obtain or maintain
regulatory approvals; the Company's ability to obtain
necessary financing, including the complete availability
of the described credit facility; the Company's ability
to enter into and meet all the conditions to consummate
the proposed Easyknit merger agreement; the Company'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 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.
The
proposed merger with Easyknit is subject to various
contingencies, including negotiation and execution
of definitive documentation, completion of due
diligence, receipt of required regulatory approvals,
and board and shareholder approvals by both parties.