Advanced Explorations Inc.

Advanced Explorations Inc.

May 02, 2007 15:39 ET

Advanced Explorations Inc. Announces May 16th Option Agreement Closing Date and Additional Debt Financing

TORONTO, ONTARIO--(CCNMatthews - May 2, 2007) -


Advanced Explorations Inc. ("AEI") (NEX:AXI.H) today announces that it has in agreement with Roche Bay plc ("Roche Bay") set the closing date of the Option Agreement and financing as May 16th, 2007. The Company is in the process of completing all the required TSX filings and financing associated with the Option Agreement.

AEI also announces that it will increase the debt financing announced on March 30, 2007, from $1,500,000 up to $3,000,000. Terms of this additional financing include a bonus equal to 20% of the loan principal advanced to 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. In the event that such transactions do not complete, the Company shall be released from all liability related to the loan and all amounts related thereto.

An exploration camp has been established on site and two drills and crews are expected to be mobilized in the near future. The Company anticipates completing sufficient drilling in the next 4 months to generate an updated resource calculation. Historical work undertaken on the property was not to NI 43-101 standards and no resource could be stated from the previous work.

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