Business
AABB - Asia Metals Inc. Receives $10 Million Third Tranche Of $34 Million Joint Venture Financing
AABB - Asia Metals Inc. Receives $10 Million Third Tranche Of $34 Million Joint Venture Financing.
About this update from Asia Broadband, Inc.
[{"type":"text","content":"\n LAS VEGAS, Oct. 22, 2020 (GLOBE NEWSWIRE) -- Asia Broadband Inc. (OTC : AABB), through its wholly owned subsidiary Asia Metals Inc., announced today that it has received the third installment of $10 Million, per its joint venture agreement with Qiangda Investments & Economics & Co., Ltd., for the continuing expansion of the Company’s gold production and property exploration operations in the state of Guerrero, Mexico. The 2018 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 funding 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 payment received in December 2019 earning an additional 10% interest, a $10 million payment received this week earning a further 12% interest and a $10 million minimum payment in 2021 to earn an added 12% interest. The joint venture capital has been allocated primarily to expand the identified resources within the Guerrero properties and continue the build-out of the Company’s new production processing facilities for greater efficiency and capacity. The funding arrangement also includes general allocation provisions for new exploration expenditures and asset purchases. AABB jointly operates 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 an Asian conglomerate entity. Its operational objective is to secure physical gold supplies for its 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 preciou...