AABB - Asia Metals Inc. Receives $9 Million Second Tranche of $34 Million Joint Venture Funding
LAS VEGAS, Dec. 10, 2019 /PRNewswire/ -- Asia Broadband Inc. (OTC : AABB), through its wholly owned subsidiary Asia Metals Inc., announced today that it has received the second installment of $9 Million, per its joint venture agreement with Qiangda Investments & Economics & Co., Ltd., for the large scale expansion of the Company's mining operations in the state of Guerrero, Mexico. The agreement guarantees a $34 million capital commitment allocated over a 3 year period on a time-lined payment schedule to earn-in a maximum 40% equity interest in the Company. The schedule consists of a $5 million initial payment that was received in October 2018 earning a 6% equity interest in the Company, a $9 million minimum payment in 2019 to earn a further 10% interest, a $10 million minimum payment in 2020 to earn a further 12% interest and a $10 million minimum payment in 2021 to earn a further 12% interest. The joint venture capital has been allocated specifically to expand the identified resources within the Asia Broadband properties and build out a new production processing facility with greater efficiency and capacity, but also includes provisions for new exploration expenditures. Asia Metals Inc. has formed a management committee with representatives of the joint venture partner to oversee, approve and direct budgeting, capital expenditures and decision-making regarding operational processes and expenditures.
Qiangda Investments & Economics & Co., Ltd., is a holding company and facilitating subsidiary of a Chinese owned conglomerate entity. Its operational objective is to secure physical gold supplies for it affiliates' manufacturing demand and to build an investment hedge that mitigates the risk of instabilities caused by fluctuations in markets and world economic conditions.
Asia Broadband Inc. (OTC : AABB), through its wholly owned subsidiary Asia Metals Inc., is a resource company focused on the production, supply and sale of precious and base metals, primarily to Asian markets. The Company utilizes its specific geographic expertise, experience and extensive industry contacts to facilitate its innovative distribution process from the production and supply of precious and base metals in Guerrero, Mexico, to our client sales networks in Asia. This vertical integration approach to sales transactions is the unique strength of Asia Broadband and differentiates the Company to its shareholders.
Forward-Looking Statements are contained in this press release within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the Asia Broadband Inc.'s (the "Company") expected current beliefs about the Company's business, which are subject to uncertainty and change. The operations and results of the Company could materially differ from what is expressed or implied by the statements made above when industry, regulatory, market and competitive circumstances change. Further information about these risks can be found in the annual and quarterly disclosures the Company has published on the OTC Markets website. The Company is under no obligation to update or alter its forward-looking statements as future circumstances, events and information may change.
Contact the Company at:
Email: ir@asiabroadbandinc.com
Website: www.asiametalsinc.com
Phone: +1-702-866-9054
Cervitude Intelligent Relations
Nicholas Coriano
SOURCE Asia Broadband Inc.