LAS VEGAS, July 10, 2018 /PRNewswire/ -- Asia Broadband Inc. (AABB), through its wholly owned subsidiary Asia Metals Inc., has signed a Letter of Intent (LOI) with a Chinese holding company pursuant to finalizing the terms of a joint venture agreement for the large scale expansion of the Company's mining operations in the state of Guerrero, Mexico. The LOI specifies an exclusivity clause and a timeline of up to 90 days to conduct sufficient verifications, evaluations and other due diligence activities prior to agreeing to the terms of a joint venture. Most significantly, the prospective partnership will require a minimum commitment of $30 million over the next 3 years, in phased expenditures, allocated to significantly expand the identified resources within the Asia Broadband properties and build out a new production processing facility that has much greater efficiency and capacity.
During the recent negotiations with multiple Asian investment groups, the LOI company aligned best with Asia Broadband by possessing synergistic corporate goals. Under further terms of the prospective partnership agreement, expanded metals production would be guaranteed future sales for Asia Broadband and a long-term secured supply to the joint venture partner. More specifically associated to gold, the joint venture company has been seeking avenues to satisfy a consumer and industrial gold fabrication demand, as well as an institutional or investment gold demand. In general, the benefits of physical gold holdings and future guaranteed supplies of gold are an investment hedge that mitigates the risk of instabilities caused by fluctuations in world economic conditions.
About Asia Broadband Inc. (AABB) - 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.