LAS VEGAS, Sept. 19, 2018 /PRNewswire/ -- Asia Broadband Inc. (AABB), through its wholly owned subsidiary Asia Metals Inc., has initiated the finalization of a definitive joint venture agreement for the large scale expansion of the Company's mining operations in the state of Guerrero, Mexico. Subsequent to the signing of a Letter of Intent (LOI) for the joint venture with a Chinese holding company and an evaluation due diligence period, there is agreement from both parties to move forward with the joint venture agreement. The key terms of the agreement are a $34 million capital commitment allocated over a 3 year period, a $5 million initial payment within 30 days of signing the final agreement and a $12 million minimum capital outlay in 2019. The final binding and operating terms of the agreement are expected to be defined and consented to within a 45 day period. The joint venture capital will be allocated to significantly expand the identified resources within the Asia Broadband properties and build out a new production processing facility with greater efficiency and capacity.
"The completion of the joint venture agreement in the coming weeks will be a powerful synergy for us at this time with the availability of significant expansion capital in combination with our resource delineating drill program. We are thrilled with the progress we made through the summer months to bring everything together to this point," affirmed James Gilbert, the Company President and CEO.
Asia Broadband Inc. (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.
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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.