Advanced Explorations Inc.

Advanced Explorations Inc.

April 23, 2007 09:12 ET

Advanced Explorations Inc. Announces Completion of a Second $500,000 Debt Financing

TORONTO, ONTARIO--(CCNMatthews - April 23, 2007) -


Advanced Explorations Inc. ("AEI") (NEX:AXI.H) today announces that it has completed $1,000,000 of the $1,500,000 debt financing announced on March 30, 2007. The Company has arranged a second loan of $500,000 from a director of AEI, where a bonus equal to 20% of the loan principal advanced shall be paid in shares of the Company at the financing rate of $1.25 per share as announced March 30th, 2007. The interest rate of the loan has been set at 10.0% per annum. The loan shall be payable upon the completion of the transactions related to the Roche Bay Option Agreement announced February 12th, 2007. The loan proceeds shall be used to support the proposed option and funds will be lent by AEI to Roche Bay Plc pursuant to a further loan agreement. In the event that such transactions do not complete, the Company shall be released from all liability related to the loan and Roche Bay Plc shall be wholly responsible for the repayment of the loan and all amounts related thereto.

Roche Bay Option

The Roche Bay magnetite project located on the East Melville Peninsula consists of 4 mining leases on outcroppings of a banded iron formation. The eastern most exposures are ideally located being within 6 kilometers of tide water. A Technical Report has been completed by Paul Palmer of Golder Associates Ltd. as the designated QP which summarized the historical and recent work completed on the Roche Bay magnetite property.

In 1982 there were 16 diamond core drill holes drilled into the iron formation for a total of 3214 metres. Based on surface mapping and historical drilling, the dip of the iron formation has been defined as vertical to sub-vertical. Based on the field work in 1982, a tonnage of 1.14 billion was estimated with an iron grade between 24% and 34%. The potential quantity and grade is conceptual in nature, as there has been insufficient exploration to define a mineral resource. This historical tonnage estimate is not considered a mineral resource estimate as defined in Sections 1.2 and 1.3 of NI 43-101 and cannot be relied upon and accordingly no claim to resources under NI 43-101 is made.

Recent (2006) metallurgical studies by SGS Lakefield from core samples collected in 2006 and historical core from the property corroborated earlier studies that consistently found that upgrading of the iron content was achieved by grinding and magnetic separation alone. The iron content of the concentrates produced varied between 66% and 71%. It was also shown that dry magnetic separation of a crushed product can lead to upgrading the feed material to 40% iron, while recovering 99% of magnetic iron in the feed material. The studies also found that the vast majority of deleterious elements reported to the tailings, resulting in a clean, high quality concentrate. The only exception was sulphides, but during pelletising tests conducted in the past, the sulphur content came down to 0.01%. The Bond ball mill work index was found to be between 6 and 9 kWh/ton.

Paul Palmer P. Geo, P.Eng of Golder Associates is the QP within the meaning of 43-101. The geologic information within this release is extracted from a qualifying report filed on Sedar and coauthored by the QP. The content of this release has been reviewed by the QP who approves the content of this release.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

This news release also includes forward-looking statements that involve a number of risks and uncertainties. The information reflects numerous assumptions as to industry performance, general business and economic conditions, regulatory and legal requirements, taxes and other matters, many of which are beyond the control of the company. Similarly, this information assumes certain future business decisions that are subject to change. There can be no assurance that the results predicted here will be realized. Actual results may vary from those represented, and those variations may be material.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Advanced Explorations Inc.
    John Gingerich
    (416) 570-3250
    Advanced Explorations Inc.
    Gary Williams
    (416) 570-0629