The wholly owned subsidiary Asia Metals Inc. of Asia Broadband Inc. ($AABB) announced today that it has received the third $10 million tranche to expand gold production and exploration activities in Guerrero, Mexico. This is the result of a previous agreement with Qiangda Investments & Economics & Co.
Asia Broadband received the third tranche
The 2018 venture agreement guarantees a capital commitment of $34 million. To earn a maximum stake of 40% in the company, Qiangda must adhere to a time-bound payment schedule over a period of 3 years. In the meantime three payments have been made with a total value of $24 million, which equates to an equity interest of 28%. The final payment will be in 2021, securing the final $10 million and 12% interest.
The joint venture capital is intended to increase the number of identified resources in Mexico. To achieve greater efficiency and capacity, construction of the new production processing facilities will continue. Furthermore, it is also included in the agreement that the general allocation provisions should provide for new exploration expenditure and asset purchases.
Asia Broadband wants to closely monitor budgeting, capital expenditures and decision-making regarding operational processes and expenditures. For this reason the company has cooperatively appointed a management committee with representatives from the joint venture partner to approve and direct the mentioned activities.
Asia Metals breaks records in the third quarter
Earlier this week, Asia Broadband reported that its wholly owned subsidiary Asia Metals has achieved a new record in gold production and gross profit quarter, while the gold outlook remains strong and the market confidence is increasing. After announcing its third quarter results, Asia Broadband has updated its annual gross profit budget to more than $14 million in 2020.
About Qiangda Investments & Economics & Co.
Qiangda Investments & Economics & Co. is a holding company and facilitating subsidiary of an Asian conglomerate entity. Its operational goal is to provide physical gold supplies for the production demand of its subsidiaries and to build an investment hedge that mitigates the risk of instability due to fluctuations in markets and global economic conditions. Source: GlobeNewswire
Neither PSN nor its owners, members, officers, directors, partners, consultants, nor anyone involved in the publication of this website, is a registered investment adviser or broker-dealer or associated person with a registered investment adviser or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of any company profiled in the PSN website is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. The information contained in the PSN website is not intended to be, and shall not constitute, an offer to sell nor the solicitation of any offer to buy any security. The information presented in the PSN website is provided for informational purposes only and is not to be treated as advice or a recommendation to make any specific investment. Please consult with an independent investment adviser and qualified investment professional before making an investment decision.