GREY:ADEXF - Post by User
Post by
justsayingon Jan 04, 2013 12:28pm
249 Views
Post# 20798132
New news - Advanced Explorations Inc. Moves Forwar
New news - Advanced Explorations Inc. Moves Forwar https://finance.yahoo.com/news/advanced-explorations-inc-moves-forward-154530003.html
Advanced Explorations Inc. Moves Forward With Restructuring of Its Iron Ore Holdings
Press Release: Advanced Explorations Inc. – Fri, Dec 21, 2012 10:45 AM EST TORONTO, ONTARIO--(Marketwire - Dec 21, 2012) - Advanced Explorations Inc. (the "Company" or "AEI") (TSX VENTURE:AXI)(AE6.F) today announced that in furtherance to its press release of February 18, 2012 and following recent discussions with its Board and XinXing Ductile Iron Pipes Group Co. Ltd. ("XDIP") that it plans to transfer its Roche Bay iron ore assets into a holding company that will be 100% held by Advanced Explorations Inc. The Company has reserved the name "Savik Iron Mines Limited" ("Savik") as the name for the holding company which will act as the operating and funding vehicle for Roche Bay. "Savik" is the Inuktitut word for "knife" derived from "savirajak", the word for metal. The Company anticipates utilizing Savik and/or similar structures for the management of its other iron ore assets, and further believes this restructuring will provide added corporate flexibility in the management and direct funding of its various iron ore projects. The intent is to form an independent management team with the appropriate skills sets and experience related to the go forward requirements (construction/operation) of the Roche Bay Project. The Company awaits final direction from its partner XDIP as to how its potential interest in Savik is to be structured.
John Gingerich, President & CEO, commented:
"We have had ongoing discussions with XDIP and a leading Chinese Bank as to the development and structural requirements for the Roche Bay Project. We have determined that the most effective and flexible structure for the future financing and management of the Project is the transfer of AEI''s interest into a wholly-owned holding company. In line with our continued commitment to the Roche Bay Framework Agreement with XDIP, the formation of Savik is an important first step towards the progression and essential financing of the Roche Bay Project".
The Company wishes to also announce that it has been assessing new partnering opportunities that were not reviewed as part of the Feasibility Study related to high quality concentrate supply to advanced iron processing facilities (pellet and/or iron reduction plants) located within short shipping distance of Roche Bay. The Company has focused on the mutual benefits that can be derived with a strategic partner willing to establish advanced processing facilities located at sites with access to low cost energy, year-round ice-free shipping and within short haul shipping from Roche Bay. Preliminary review has identified important operational advantages to Roche Bay should a strategic arrangement be completed. Increasing the amount of iron concentrate delivered on short haul routes will result in a corresponding increase of the average netback to the project. In addition, short haul routes provide an opportunity for an optimized shipping solution from Roche Bay. Both these potential factors would positively affect project economics.