AsiaBaseMetals Inc. (TSX-V:ABZ) has reached an agreement with AXN Group LLC, a privately owned investment company, to buy 90% of a Laotian company.
The Laotian company will hold exclusive mining and exploration rights in the Vientiane potash property.
AsiaBaseMetals has agreed to issue one million common shares to AXN when the transaction is closed.
The other terms of the agreement stipulate that, if and when AsiaBaseMetals completes financings of at least $2 million, another one million common shares will be issued and $500,000 will be paid to AXN.
Raj Chowdhry, president and CEO of AsiaBaseMetals, said the agreement represents a great opportunity for the company, and the location of the property is an advantage.
“This potash project in Laos is located next to China, India and Indonesia, a region of the world already representing almost 50% of the world’s potash demand,” he said.
Potash is one of the key components of fertilizer, and Chowdhry said some of the world’s largest agricultural markets are in Asia.
Chowdhry added that the closing of the transaction is subject to various conditions.
AsiaBaseMetals is a Vancouver-based zinc and base metal exploration company. Its Gnome Zinc Project is located in northern B.C.
At press time, AsiaBaseMetals’s share price was $0.25, an increase of 4.17%.
Emma Crawford