Minneapolis, Minnesota,
October 1, 2007 -
Wits Basin Precious Minerals
Inc. (OTCBB: WITM)
is pleased to announce that it has increased
its ownership position from 25% to 50% in
the Vianey Silver-Zinc-Lead Mine Concession
located in the State of Guerrero, Mexico.
Under the
terms of the original joint venture
agreement entered into on June 28, 2006,
Journey Resources Corporation granted Wits
Basin an exclusive option to acquire up to a
50% interest in those mining claims
comprising Vianey. The Company agreed to
issue Journey 1,600,000 shares of its
unregistered common stock for the right to
acquire the additional 25% ownership.
Journey, which acts as operator of the
Vianey project, previously held a 75%
undivided interest; as of September 28,
2007, both parties now own 50% each.
About the Vianey
Mine Concession
The 44-hectare (approximately
108 acres) Vianey Mine Concession is located
in the southern Mexican state of Guerrero,
250 kilometers south of Mexico City and 160
kilometers north of Acapulco. The property
Journey owns covers two mineral concessions
totaling 5,022 hectares (approximately
12,400 acres) and has a silver-lead-zinc
mineralization production history. Journey
acquired 100% ownership of the Vianey
property from Minerales Jazz S.A. in 2005.
Mineralization at the Vianey Mine includes
veins, breccias, lens and mantos of silver
as well as poly-metallic (Pb-Zn)
mineralization with local concentrations of
gold and copper. Most of the veins are
localized along NW-SE trending structures
and E-W structures; the lenses occur in
fault zones and as sulfide concentrations
with calcite, gypsum and quartz between some
bedding planes. Two major breccia zones of
significance, which are associated with
calcite-gypsum-quartz gangue minerals and
important amounts of associated silver, have
been identified in the limestone.
About Journey Resources Corporation
Journey is a Canadian-based
mining and exploration company engaged in
the acquisition, exploration, development
and operation of late-stage projects in
North America, Central America and other
emerging markets. Their projects currently
include a 100% lease interest in the
Musgrove Creek gold exploration project near
Salmon, Idaho; now a 50% equity interest in
the Vianey Mine, silver/lead/zinc
mineralization in Guerrero State, Mexico;
and a 50% lease interest in the Empire Mine
Project, a former copper/gold/silver
producer, near MacKay, Idaho.
Journey (www.journeyresourcescorp.com)
trades on the TSX Venture Exchange (TSX
VENTURE:JNY) and the Frankfurt Stock
Exchange (FWB:JL4).
_______________________________________________________
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. 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; the Company's
ability to consummate the Easyknit merger;
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
"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.