Wits Basin Signs Iron Ore Definitive Purchase Contract
Monday, August 11th 2008
Wits Basin Precious Minerals Inc. announce the signing of purchase contracts for the acquisition of a producing iron ore mine, a separate, nearby drill-indicated iron ore resource, and a processing plant located near Maanshan, Anhui Province in the People’s Republic of China.
The producing mine and the drill-indicated resource total more than 94 million tonnes of magnetite iron ore. The processing plant is now producing up to 1,700 tonnes per day of iron ore concentrate that averages 62% Total Iron (TFe). All concentrate now being produced is sold directly to nearby steel mills at negotiated spot prices. Wits Basin is planning a staged increase in production.
The purchase price and terms materially conform to previously announced terms and conditions. The payments are subject to confirmation of permits and ore rights and other such ordinary and customary required due diligence rights.
In related news, the Company has engaged Loong Keat Tan, a former Rio Tinto mining executive on an exclusive, full-time basis. Mr. Tan served Rio Tinto for 21 years, serving as General Manager of world class projects including Hamersley Iron’s Mount Tom Price Operations in Western Australia and Bougainville Copper Ltd.’s mine in Papua New Guinea. He also served as head of Rio Tinto Asia’s Hong Kong office and Rio Tinto’s Beijing Representative Office.
“Wits Basin continues to make significant progress in securing a project that is revenue producing and cash flow positive,” remarked Wits Basin CEO Stephen D. King. “We are excited to be moving to the next step in acquiring this China-based iron ore business.”
Wits Basin is a minerals exploration and development company holding interests in three exploration projects and contracts in the PRC. It currently does not claim to have any mineral reserves on any project. Its common stock trades on the Over-the-Counter Bulletin Board under the symbol “WITM.” Website at: www.witsbasin.com.