MINNEAPOLIS, Nov. 30, 2006 (PRIME NEWSWIRE) -- Wits Basin Precious Minerals Inc., (OTCBB:WITM) is pleased to announce it has entered into a non-binding memorandum of understanding discussion agreement with Easyknit Enterprises Holdings Limited, a Bermuda incorporated company and listed on the Stock Exchange of Hong Kong ("SEHK"); having their principal offices in Hong Kong; whereby Wits Basin and Easy Knit will merge. The memorandum of understanding provides for definitive documents to be completed within 120 days. The transaction will be subject to, amongst other things, various regulatory approvals, negotiation and execution of definitive merger documentation, agreements as to materials terms, mutual due diligence review, and a vote by Wits Basin Shareholders.
"We believe this presents a great opportunity for the shareholders of both companies," explained Vance White, Chairman. "We have to thank our Director Norman Lowenthal for his hard work and dedication for this opportunity." Mr. Lowenthal is the former Chairman of the Johannesburg Stock Exchange and currently vice chairman of SSC Sino Gold Consulting Company Limited, a joint venture between SSC Mandarin Financial Services, Hong Kong and the wholly owned subsidiary of the state-owned China Gold Association in China. China Gold Association is the only Central Government administrative and regulatory body for the gold mining industry in China.
Detailing the proposed transaction, CEO Stephen King explains, "We have in Easyknit Enterprises a great partner with cash resources. If the transaction proceeds, Easyknit Enterprises will gain access to the potential of the Wits Basin portfolio of properties while Wits Basin will gain access to the mining opportunities in China. This transaction will accomplish in one step what could have otherwise taken years."
About Easyknit Enterprises
Easyknit Enterprises Holdings Limited is a garment industrial group in Hong Kong. The Company is incorporated in Bermuda and its shares are listed on the Stock Exchange of Hong Kong Limited under the stock code (616). Easyknit Enterprises Holdings Limited has also entered into a discussion with SSC Mandarin Financial Services Limited for a potential investment in SSC-Sino Gold Consulting Company Limited for a strategic equity joint venture to strengthen its gold mining management and possible acquisition of mining opportunities in China.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in five exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (OTCBB:WITM) visit our website at www.witsbasin.com.
Forward-Looking Statements and Risk Factors
Certain statements contained in this press release are forward-looking in nature and are based on the current beliefs and assumptions of our management. Words like "may," "could," "should," "anticipate," "believe," "estimate," "expect," "intend," "plan," "predict," and similar expressions and their variants may be used to identify forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes.
The exploration for and development of mineral deposits involves significant financial risks, which even experience and knowledge may not eliminate, regardless of the amount of careful evaluation applied to a process. While the discovery of a mineral deposit may result in substantial rewards, few properties are ultimately developed into producing mines. Moreover, we cannot make any estimates regarding probable reserves and mineral resources in connection with any of our projects and any estimates relating to possible reserves are subject to significant risks. Therefore, no assurance can be given that any size of reserves or grades of reserves will be realized. If a discovery is made, the mineral deposit discovered, assuming recoverable, may differ from the reserves and mineral resources already discovered and recovered by others in the same region of the planned areas of exploration.
The cost of exploration and exploitation can be extensive and there is no assurance that we will have the resources necessary or the financing available to pursue projects we currently hold interests in or to acquire interests in other mineral exploration projects that may become available. The risks are numerous and detailed information regarding these risks may be found in filings made by us with the Securities and Exchange Commission, including our most recent annual report on Form 10-KSB, quarterly reports on Form 10-QSB and reports on Form 8-K.