Message #38 From:
NewsBot Date: January 22, 2007 06:11:00 AM
WITM News Wits Basin Announces Business Development Update
MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB:WITM) provides the following
information regarding the development of its business.
Quarterly Milestone Achievements
First Quarter:
Dr. Clyde Smith becomes an outside consultant to the Company
The Bates-Hunter Gold Project, Colorado, assay results help to confirm
data from historical records
Second Quarter:
Wits Basin has warrants exercised, resulting in gross proceeds of
approximately $3.9M
The Company began its due diligence, required to be completed by June
30, 2006, for the Vianey Silver-Lead-Zinc Project, Mexico
Vianey due diligence completed and option to earn up to 50% of project
acquired on June 28, 2006
Third Quarter:
Purchase agreement for the Bates-Hunter Gold Project using a “cash-flow”
mortgage announced
Bates-Hunter surface drill program underway
Dr. Clyde Smith is appointed the President of the Company
Fourth Quarter
“New Order”
five-year permit issued by government for the Wits Basin-AfriOre
International Ltd. joint venture on the FSC Gold Project, South Africa
Wits Basin earns initial 25% of Vianey Project
Vianey assay results released
Wits Basin announces Memorandum of Understanding (MOU) for merger
discussions with EasyKnit (EK) Enterprises, Hong Kong
As we continue to move forward in 2007 our operating focus will be on
three projects and the MOU discussions with EK will be fully explored.
The important work to be accomplished by the commencement of the surface
drilling at the Bates-Hunter Gold Project is underway. We see the value
creation at this project being developed as follows:
1. The search for a significant gold ore body is the purpose of the
surface deep drilling program now in progress. Over 2,000 feet of an
8,000 foot drill program have been completed. The drillers returned to
the site the second week of January after a three-week holiday break.
2. De-watering and rehabilitation of the mine will allow for an
underground drilling program that will test additional veins adjacent to
the Bates Vein.
3. If gold ore reserves are located in adjacent veins, early production
could follow.
4. Discovery of significant gold ore bodies could attract a major
company partner or buyer of this asset.
5. Other local area property opportunities will be explored as they
develop.
6. Mutually agreed closing date extension till May 31, 2007 to allow
increased water treatment benefits for our property and the surrounding
area.
On the Vianey Silver-Lead-Zinc Project, drilling for phase one has
recently been completed and mine re-habilitation work is underway to
create conditions needed for additional exploration, development and
potential production. The phase one core drilling assay reports are
being finalized by Rodney Blakestad, the project Consulting Geologist,
and will then be reviewed by Dr. Smith. These reports are expected to be
released in the near term. The Phase two underground drilling is planned
to be underway with a target date of completion prior to September 2007.
Wits Basin intends to exercise its option to acquire the next 25% of its
joint venture with Journey Resources Corp. of Vancouver, B.C., bringing
its ownership to 50%.
The FSC Gold Project in South Africa is now preparing for drilling. With
the announced sale of our joint venture partner, AfriOre, we are in
discussions with the planned new partner to determine timing and next
steps to earn our additional 15% through the next phase of exploration
drilling.
MOU with EasyKnit
Three company directors are currently en route to Hong Kong to meet with
the board of EasyKnit Enterprises to discuss the terms of the potential
merger. Wits Basin has engaged the services of Troutman Sanders, an
Atlanta-based law firm with Hong Kong offices, to be special counsel for
the purpose of reviewing any and all needed steps to completing a
merger. We expect to complete this trip on or about February 5, 2007.
Liquidity Sources and Capital Needs
From the end of the 3rd Quarter until now, the
company has collected proceeds from warrant exercises of approximately
$1,000,000 and has commitments for approximately $600,000 more. There
have been expressions of intent to exercise an additional $1,200,000 of
warrants (not yet registered) in the first half of 2007. Unused project
related standby financing remains at $1,000,000.
Our current immediate project payments planned during the 1st
and 2nd quarter will include $500,000 for FSC,
$400,000 for Vianey and an estimated $575,000 for Bates-Hunter.
Corporate expenses for the 1st and 2nd
quarter are estimated to be $400,000.
The Company believes the above described sources of liquidity will be
sufficient to fund operations through the end of the 2nd
quarter 2007 without raising capital.
We are a minerals exploration and development company holding interests
in five 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 ability to obtain or maintain regulatory approvals; the
Company's ability to obtain necessary financing; the Company's ability
to enter into and meet all the conditions to consummate the proposed
merger agreement, 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 and mineral resources 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 and mineral resources 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 on Form 10-KSB, quarterly reports on Form 10-QSB
and reports on Form 8-K.
