AsiaBaseMetals Inc. Announces Signing of Cooperation Agreement with City within the European Union to Obtain Legal Cannabis Sector License
VANCOUVER, British Columbia, June 19, 2019 (GLOBE NEWSWIRE) -- AsiaBaseMetals Inc. (the "Company") (TSX-V: "ABZ”) is pleased to announce, subject to the Company’s confidentiality obligations, the entering into of a cooperation agreement (the “Agreement”) with a city (the “City”) within a member country (the “Country”) of the European Union (“EU”) under conditions set forth by the law of the Country, to obtain relevant licences for growing and selling cannabis for medical purposes (“Medical-Cannabis-Permit”), as well as to obtain a licence for growing, processing and sale of cannabis for commercial purposes including recreational purposes (“Recreational-Cannabis-Permit”) when and if this becomes permitted by law in the Country. The Country has legalized Cannabis for limited medical use and decriminalized it for personal use.
The Agreement provides that the City, as a unit of local self-government, will provide support to AsiaBaseMetals Inc. by submitting the licence application for the Medical-Cannabis Permit through a limited company to be initially held 100% by the City (“City-New-Sub-Co-Ltd.”). Once City-New-Sub-Co-Ltd. obtains a Medical-Cannabis-Permit the City will transfer shares of City-New-Sub-Co-Ltd. to AsiaBaseMetals Inc., whereby AsiaBaseMetals Inc. shall become 100% owner or majority owner of City-New-Sub-Co-Ltd., allowing the City to retain a minority interest. The Company intends to incorporate a wholly-owned subsidiary to acquire City-New-Sub-Co-Ltd. to facilitate a potential spin-out transaction on a planned one (1) new spin-out company share for each existing Company share basis, to create a new company focused on the cannabis sector as further outlined below under the heading “About AsiaBaseMetals Inc”. The transaction contemplated by the Agreement and any spin-out transaction is subject to the approval of the TSX Venture Exchange.
“It is interesting to note that in the cannabis sector, the largest market within western cultures is represented by Europe, having an approximate population of 740 million people (with EU representing approximately 512 million), when compared to North America having an approximate population of 579 million (with USA representing approximately 327 million). The Country has already passed legislation for growing and selling cannabis for medical consumption and is awaiting the required regulations for full implementation. The Country, especially within the City region, has one of the best climates and agricultural conditions within the EU. The region has advanced experience in both outdoor and greenhouse cultivation of products including tomatoes, carrots, asparagus, other vegetables and vegetation. Further, City is a coastal city that has access to freeways/highways, international airports, ports, marinas, power, and all other essential required infrastructure to service agriculture, industry and tourism. The Country hosted approximately 20 million tourist/business visitors in 2018, who came to the Country to enjoy its rich history, culture, people, cuisines & wines, extensive coastline (mainland having over 1,700 km of coastline and islands having over 4,000 km of coastline), beaches, leisure activities and recreation. If fully implemented, this opportunity is expected to provide AsiaBaseMetals Inc. a true first mover advantage in the EU. The Company is continuing to consider additional opportunities and acquisitions in the cannabis sector only in fully legal jurisdictions," stated Raj Chowdhry, CEO.
In consideration for Raj Chowdhry’s services in locating, arranging and consummating the Agreement, the Company has agreed to cause City-New-Sub-Co-Ltd. to pay to Mr. Chowdhry a royalty equal to 2.5% of gross sales generated by the business to be conducted by City-New-Sub-Co-Ltd., subject to any required regulatory approvals including approval of the TSX Venture Exchange.
The Cannabis Sector
The Agreement is a result of the Company’s recent review of the cannabis sector and markets and subsequent efforts to identify, pursue and implement opportunities in Europe which is the largest up and coming cannabis market in the world. The Company intends to retain business and commodity focus for this sector by plan of arrangement spin-out transaction(s), subject to regulatory approvals including the approval of the TSX Venture Exchange.
Mining Sector
Gnome Project (Zinc/Cobalt) (100% owned): The Company has commenced the mobilization of the crew and equipment to execute its planned 2019 exploration and drill program on the Gnome Project. The Gnome Project is located 35 km SE along trend from Cirque and 15 km SE of the Akie Property in the province of British Columbia, Canada, and encompasses approximately 5,868 hectares (12 mineral claims including the 613.91 hectares recently staked). The Gnome Project is in the heart of the area that is home to ZincX Resources Inc.’s flagship 100% owned Akie Project hosting the Cardiac Creek SEDEX Zn-Pb-Ag deposit, and Teck Resources Limited (“Teck”) & Korea Zinc ’s (“KZ”) joint ventured (“T-KZ JV”- 50% each) Cirque deposit and the Pie, Cirque East and Yuen properties. The program is expected to complete by September 30, 2019. Mineralization hosted on the Cirque and Cardiac Creek (Akie Project) Properties is not indicative of the mineralization hosted on the Company’s Gnome Zinc Project at its current stage of exploration.
Thazi Project: The Company is awaiting the grant of exploration permits for lithium pursuant to a submitted application in Myanmar. The Company intends to design its initial work program to explore for both hard-rock and salar-type (continental salts and brines) deposit potential, using modern field techniques with International Organization for Standardization-approved mineralogical studies and analytical methods. The Thazi Mineral Claims are located in the Hlaing Det area in the Meiktila District which is known as the main Feldspar-producing area of Myanmar. The Thazi Mineral Claims are accessible by road via the Meiktila-Thazi-Taunggyi highway, the main highway from central Myanmar to Shan State in the east, which eventually leads to the border of Thailand, and by train which runs through the central portion of the Thazi Mineral Claims. Power also runs along the highway and is available in the Hlaing Det area.
Raj Chowdhry, CEO stated, “The opportunity to advance the Gnome Project, a project adjacent to the Cardiac Creek Deposit (hosted within the Akie Project) where ZincX announced (June 20, 2018) robust results of a Preliminary Economic Assessment ("PEA"), finally to drilling is very exciting.”
Afzaal Pirzada, P.Geo., a Consultant to the Company, is an Independent Qualified Person for the purposes of NI 43-101 and has reviewed and approved the information of a scientific or technical nature contained in this news release.
About AsiaBaseMetals Inc.
AsiaBaseMetals Inc., a company focused on advancing its projects in the mining sector and developing and evaluating additional opportunities in the cannabis sector, is led by an experienced and successful business and mining team. The Company is advancing current opportunities and exploring additional opportunities in the cannabis sector, with emphasis in Europe, and advancing its 100% owned Gnome Zinc Project and its 100% owned Jean Iron Ore Project in world-class mining districts in Canada, one of the safest and mining friendly jurisdictions in the world. In addition, the Company is seeking to further diversify its portfolio, with special attention directed to advanced acquisition targets in the Americas, Asia and Africa for base metals [Copper (Cu)], alkali metals [Cobalt (Co) / Lithium (Li)] and precious metals [Gold (Au) / Silver (Ag)]. The Company is awaiting the grant of exploration permits for lithium pursuant to a submitted application in Myanmar and is in an advanced stage of reviewing mining projects for acquisition in Africa.
The Company, subject to required approvals, intends to retain business and commodity focus for both the cannabis and mining sector by plan of arrangement spin-out transaction(s) (“Spin-Co’s”) as projects are identified and acquired, in the same manner as when AsiaBaseMetals Inc. was originally formed. Spin-Co's result in the Company retaining commodity/business focus and the shareholders of the Company, as of the record date for the Spin-Co creation, automatically receiving additional shares in a new company while retaining their shares in AsiaBaseMetals Inc..
For more information please email info@asiabasemetals.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The PEA is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. Mineralization hosted on the Cirque and Cardiac Creek (Akie Project) Properties is not indicative of the mineralization hosted on the Company’s Gnome Zinc Project at its current stage of exploration.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Agreement, the transactions contemplated thereby and the Company’s pursuit of opportunities in the cannabis sector, the grant of the Thazi Mineral Claims, the Company’s plans for future exploration programs in Myanmar, the Gnome Project and planned exploration of the Gnome project, including timing, possible acquisitions and spin-out transactions and expected outcomes, may constitute "forward-looking information" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will obtain the necessary regulatory approvals for the transactions contemplated by the Agreement, the grant of the Thazi Mineral Claims, exploration in Myanmar and the proposed exploration on the Gnome Project, the Medical-Cannabis-Permit will be obtained, the acquisition of City-New-Sub-Co-Ltd. by the Company will be completed and will have the benefits expected by management, the Company will obtain the necessary approvals for possible acquisitions and spin-out transactions, the Company will obtain the necessary personnel, supplies and equipment and be able to carry out future exploration or work programs as planned, the Company’s planned exploration will achieve the results expected by management and that the Company will obtain any required financing. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, delays in obtaining or inability to obtain required regulatory approvals, personnel, equipment or supplies, the Medical-Cannabis-Permit will not be obtained, the acquisition of City-New-Sub-Co-Ltd. by the Company will not be completed or will not have the benefits expected by management, the Company will be unable to secure possible acquisitions and spin-out transactions, the Company’s planned exploration will not achieve the results expected by management and changes in the Company’s plans. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. There can be no assurance that the transaction contemplated by the Agreement will complete on the anticipated terms or at all.
Contact Information AsiaBaseMetals Inc. Raj Chowdhry, Chief Executive Officer Email: info@asiabasemetals.com
