AsiaBaseMetals Inc. Provides Update on 100% owned Gnome Zinc Project; Flow-Through and Non-Flow-Through Financing

VANCOUVER, British Columbia, Aug. 01, 2018 (GLOBE NEWSWIRE) -- AsiaBaseMetals Inc. (the "Company") (TSX-V:ABZ) announces preparations for additional exploration work on its 100% owned Gnome Zinc Project located in Northwest British Columbia.  The over 5,000 hectare Gnome Zinc Project is located 35 km SE from the Cirque Deposit (Teck & Korea Zinc - Joint Venture) and 15 km SE of the Cardiac Creek Deposit – Akie Project (ZincX) on a NNW-SSE oriented geological trend, in the southernmost part (Kechika Trough) of the regionally extensive Paleozoic Selwyn Basin, one of the most prolific sedimentary basins in the world for the occurrence of SEDEX zinc-lead silver and stratiform barite deposits. Recent results from the district highlight the potential of the Gnome Zinc Project.

The additional work is anticipated to include compilation of historical exploration data to generate and select drilling targets, based in part on the extensive previous work performed on the Gnome Zinc Project as outlined in the Company’s previously released NI 43-101 Technical Report dated August 21, 2009 (Qualified Person: Darwin Green B.Sc., M.Sc., P.Geo.), which was filed on SEDAR on October 8, 2009, and a geological report dated December 4, 2012 (Qualified Person: John F. Childs, Ph.D of Childs Geoscience Inc. from Bozeman, MT., USA).

The Cirque Deposit is held 100% between Teck Resources Limited ("Teck") and Korea Zinc ("KZ") through a joint venture ("T-KZ JV" – 50% each), together with a 51% interest in the Pie, Cirque East and Yuen properties that were originally optioned by Teck from ZincX Resources Inc. (formerly Canada Zinc Metals Corp.) ("ZincX") and now held as part of the T-KZ JV.

On June 20, 2018, ZincX announced robust results of a Preliminary Economic Assessment ("PEA") of the Cardiac Creek Deposit hosted within the Akie Project.

Flow-Through and Non-Flow-Through Financing

The Company is also pleased to announce a fully subscribed non-brokered flow-through and non-flow-through private placement (the "Private Placement"). Under the Private Placement, 185,000 flow-through common shares (each, a "Flow-Through Share") of the Company at a price of $0.285 per Flow-Through Share have been subscribed for, for gross proceeds of $52,725.

In addition, 87,000 non-flow-through common shares (each, a "Non-Flow-Through Share") of the Company at a price of $0.285 per Non-Flow-Through Share have been subscribed for, for gross proceeds of $24,795.

The proceeds from the sale of the Flow-Through Shares and Non-Flow-Through Shares (collectively, the "Shares") will be used for the exploration work on the Gnome Zinc Project and for general corporate and working capital purposes. The Private Placement is subject to acceptance by the TSX Venture Exchange and the Shares issued pursuant to the Private Placement will be subject to a four month hold period from the date of issue.

Certain directors and officers of the Company are expected to acquire securities under the Private Placement.  Such participation would be considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

Qualified Person

Afzaal Pirzada, P.Geo., a consultant to the Company, is a 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 mining company led by an experienced and successful business and mining team, is prudently 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 intends to retain commodity focus as projects are identified and acquired by plan of arrangement spin-out transaction(s) in the same manner as when AsiaBaseMetals Inc. was originally formed.

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 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 Gnome Zinc Project, possible acquisitions and spin-out transactions and the Company’s exploration and other plans, and the proposed financing and use of proceeds therefrom, 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 planned exploration, the proposed financing and possible acquisitions and spin-out transactions, and that the proposed financing will be completed. 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, inability to complete the financing 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.

AsiaBaseMetals Inc.
Raj Chowdhry, Chief Executive Officer   
Email: info@asiabasemetals.com