Wits Basin Amends Bates-Hunter Mine Contract and Plans to Review Its Gold Properties Strategy
Wits Basin Precious Minerals Inc. (OTCBB:WITM Stock message boards forums) is pleased to announce it
has recently amended its Purchase Agreement relating to the Bates-Hunter
Mine in Central City, Colorado. Under the new terms, the closing date
for the acquisition is extended to June 30, 2008. The purchase price has
also been amended so that a cash payment of CDN$250,000 that was
previously due at closing could now be included in a promissory note
that will be issued at closing. The promissory note enables the Company
to defer all payments of principal and interest until the earlier of
January 2010 or the date the mine enters into production. The Company
has spent approximately US$2.5M to date on underground drilling, surface
drilling, rehabilitation and dewatering at the mine. For more
information regarding the amendment, please see the Company’s
Form 8K filed with the Securities and Exchange Commission.
The Company also announced that it intends to study various strategic
methods to maximize value for its gold properties, including both the
Bates-Hunter Mine and the FSC gold exploration project in South Africa.
About the Bates-Hunter Mine
The Bates-Hunter Mine is located in Central City, Colorado,
approximately 35 miles west of Denver. The Bates Vein was the second
lode discovered in Colorado and helped spark the great Colorado gold
rush of the mid-1800s. Famous for production from high-grade gold ore
shoots, it has been estimated that more than 4,000,000 ounces of gold
were produced in the Central City Mining District between 1859 and 1947,
with approximately 95% of production prior to 1904. During the early
1930's, the mine was still in production but was shut down due to
litigation between the mine owner and operator. In 1942, a WWII
production limitation order (#208) effectively shut down gold mining in
the area and throughout Colorado and the United States. The nine
principal veins that underlie and are controlled by the Bates-Hunter
property have historically produced approximately 750,000 ounces of
gold. A 1930’s report from the 745-foot level
included an average of 27 samples that assayed 1.37 ounces per ton gold.
About Wits Basin Precious Minerals Inc.: 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.
Forward-Looking Statements and Risk Factors: The statements
included in this press release concerning predictions of economic
performance and management's plans and objectives constitute
forward-looking statements made pursuant to the safe harbor provisions
of Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended. This press
release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially. Such
statements are valid only as of today, and we disclaim any obligation to
update this information. These statements are subject to known and
unknown risks and uncertainties that may cause actual future experience
and results to differ materially from the statements made. These
statements are based on our current beliefs and expectations as to such
future outcomes. These risks and uncertainties include, among others,
the Company's and China Global Mining Resources Ltd.’s
ability to obtain or maintain regulatory approvals; the Company's
ability to obtain necessary financing; the Company's and CGMR's ability
to complete the various mining project acquisitions in the People's
Republic of China, which are subject to execution of final
documentation, completion of due diligence and receipt of necessary
financing; and other risks and uncertainties described in the Company's
filings from time to time with the Securities and Exchange Commission.
The Company disclaims any obligation to update its forward-looking
statements.
In addition, the exploration for and development of mineral deposits
involves significant financial risks, which even experience and
knowledge may not eliminate, regardless of the amount of careful
evaluation applied to a process. While the discovery of a mineral
deposit may result in substantial rewards, few properties are ultimately
developed into producing mines. Moreover, we cannot make any estimates
regarding probable reserves in connection with any of our projects and
any estimates relating to possible reserves are subject to significant
risks. Therefore, no assurance can be given that any size of reserves or
grades of reserves will be realized. If a discovery is made, the mineral
deposit discovered, assuming recoverable, may differ from the reserves
already discovered and recovered by others in the same region of the
planned areas of exploration. Further, the cost of exploration and
exploitation can be extensive and there is no assurance that we will
have the resources necessary or the financing available to pursue
projects we currently hold interests in or to acquire interests in other
mineral exploration projects that may become available. The risks we
face are numerous and detailed information regarding these risks may be
found in filings made by us with the Securities and Exchange Commission,
including our most recent annual report.
