Asian Mineral Resources Limited

Asian Mineral Resources Limited

May 05, 2008 11:59 ET

Asian Mineral Resources Limited-Jinchuan Offtake and Subscription Agreements

TORONTO, ONTARIO--(Marketwire - May 5, 2008) - Asian Mineral Resources Limited ("AMR" or the "Company") (TSX VENTURE:ASN) announced today that its 90% subsidiary, Ban Phuc Nickel Mines LLC ("BPNM") has entered into an Offtake Agreement with Jinchuan Group Ltd. ("Jinchuan") to sell Jinchuan all nickel concentrates produced during the estimated five-year life of mine of its initial Ban Phuc project and has granted Jinchuan first refusal rights on additional nickel concentrates that BPNM may produce.

AMR also announced that it has entered into a Subscription Agreement with Jinchuan whereby Jinchuan will purchase, subject to Chinese government and TSX-V Exchange approvals and the satisfaction of typical conditions, 4,000,000 units at Cdn $1.75 a unit for aggregate proceeds of Cdn $7 million. Each unit consists of one AMR common share and one warrant to purchase a common share for Cdn $2.10 exercisable until July 31, 2008. Exercise of the warrants would yield further proceeds of Cdn $8,400,000, bringing Jinchuan's total investment in AMR to Cdn $15,400,000.

"These agreements with Jinchuan as a customer and as an investor in our Ban Phuc Project are the culmination of close liaison with Jinchuan over several years as the Project progressed through technical studies and Vietnamese approvals," commented Jim Askew, AMR's Chairman. "The Agreements constitute an important element of bringing the Project into production in the first half of 2009 and adding to our ability to finance both the Project and our recently commenced regional exploration programme."

Company Profile:

Asian Mineral Resources Limited is developing the Ban Phuc Nickel/Copper Project in north-western Vietnam in which it has a 90% interest. The Project is scheduled for commercial concentrate production in the first half of 2009.

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements." All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Asian Mineral Resources Limited are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Asian Mineral Resources Limited's expectations are disclosed under the heading "Risk Factors" and elsewhere in Asian Mineral Resources Limited documents filed from time-to-time with the TSX Venture Exchange and other regulatory authorities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Asian Mineral Resources Limited (Toronto, ON)
    Jim Askew
    (416) 360-3412
    (416) 367-1954 (FAX)
    Asian Mineral Resources Limited (Hanoi, Vietnam)
    Robert Thomson
    President & CEO
    +84 4 943 3462
    84 4 943 3460 (FAX)