SOURCE: Plateau Mineral Development, Inc.

February 11, 2011 10:37 ET

Plateau Mineral Executes LOI to Acquire BEEMA-Pakistan Insurance Operations

NEW YORK, NY--(Marketwire - February 11, 2011) - Plateau Mineral Development, Inc. ("Plateau Metals") (PINKSHEETS: PMDP) announced it executed a Letter of Intent, expiring on 30 June 2011, to acquire BEEMA with material terms disclosed herein:

Purchase Price; Payment Terms
The value of the proposed purchase price is based upon 100% of the existing physical assets, intellectual property rights, and current value of BEEMA's assets and operations. This letter assumes BEEMA will continue to be operated in the "ordinary course of business," that there is no material change to the business between the date of the LOI and the close of the Definitive Agreement, and that BEEMA not engage in unusual or substantial transactions that could jeopardize the assets contemplated in the Letter of Intent.

Purchase Structure
1. Plateau and its Investment Banker partner shall Underwrite an enhancement of capital of further 400 million ordinary shares of Beema Pakistan Company Limited ("BEEMA") at par value of Rs. 10/- per share worth Pakistan Rupees, 4 Billion (equivalent in US Dollars); and

2. to purchase through our nominee the immovable properties owned by BEEMA for a maximum value (in US Dollars equivalent) of Pakistan Rupees One Billion only.

3. Plateau Mineral has received full capital Underwriting Guarantee from its Investment Banker partners to complete the Underwriting, Purchase, and Sale of the Shares.

Approvals
The Definitive Agreement shall be subject to the approval of the following: (a) Board of Directors of BUYER; (b) the Board of Directors of BEEMA; and (c) BEEMA's shareholders if applicable; and (d) High Court of Sindh, the Securities and Exchange Commission of Pakistan, the State Bank of Pakistan and/or any other relevant authority exercising jurisdiction in this regard in Pakistan.

Plateau will not issue Common Stock to acquire BEEMA but will create a new designation of Preferred Stock as pari-passu consideration for the acquisition. Current shareholders are expected to enjoy significant equity appreciation through this structured transaction.

The Company will publish pro-forma financials representing the combined entities.

The Company is completing its main disclosures and financial statements and will file these immediately subsequent to the consolidation of the company's new incoming operations. The Company expects this to occur within 7 business days.

About Plateau
Plateau Metals provides precious metal shipping, access to production, transaction underwriting, and related services. Plateau operates across the world through its agents and offers service to multiple jurisdictions. Plateau offers complete solutions to buyers and sellers of precious metals that include storage, shipping, and transaction underwriting and arbitrage. 

Plateau also acquires, develops, integrates and operates strategically aligned precious metal assets in worldwide markets where expansion is planned through additional investments to support organic growth; thereby providing significant revenue, and equity growth.

The company's operations are distributed across multiple international time zones with executives and agents located in client-appropriate locales. The company's website is www.plateaumetals.com.

Safe Harbor Statement:
This information includes certain "forward-looking statements." The forward-looking statements reflect the beliefs, expectations, objectives and goals of the Company management with respect to future events and financial performance. They are based on assumptions and estimates, which are believed reasonable at the time such statements are made. However, actual results could differ materially from anticipated results. Important factors that may impact actual results include but are not limited to commodity prices, political developments, legal decisions, market and economic conditions, industry competition, the weather, changes in financial markets and changing legislation and regulations. Matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include but are not limited to risks and uncertainties associated with the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company. Forward-looking statements are intended to qualify for the safe harbor provisions of Section 21E of the Securities and Exchange Act of 1934, as amended.

Contact Information

  • CONTACT:
    Plateau Metals

    Investor Relations
    New York: 1.917.463.3364
    London: +(44) (0)20 337 17122
    Fax: +(44) (0)208 338 0655

    info@plateaumetals.com