Message #47 From:
Jason Date: April 15, 2007 02:05:44 PM
WITM: Wits Basin Executes Financing to Proceed With Merger
Wits Basin Precious Minerals Inc. (OTCBB:WITMForum Stocks) is pleased to announce that it has signed definitive documents for a US$25,000,000 credit facility from China Gold, LLC of Kansas City. The Company has received an initial draw of $1,600,000, which is expected to be used towards the costs relating to the merger with Easyknit Enterprises Holdings Ltd. Should additional funds be drawn from this credit facility, the Company could proceed with the proposed purchase of assets, interests and/or options of the previously announced projects of Nickel, Gold and Iron Ore located in the People’s Republic of China.
The terms of the credit facility allows China Gold, LLC to convert any debt into shares of Wits Basin common stock, at $1.00 per share. The Company has 12 million shares of its common stock available for conversion at this time. The additional 13 million will require the Company to seek shareholder approval to increase its capital stock beyond the 150 million shares currently available. This approval is intended to be sought in the same proxy statement as the vote regarding the merger with Easyknit. The Company believes the share exchange ratio of Wits Basin common stock for Easyknit common stock previously announced will not be affected by this financing.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol “WITM.” To find out more about Wits Basin Precious Minerals Inc. (OTCBB:WITM) visit our website at www.witsbasin.com.
