October 14, 1997 For Immediate Release VSE: PAR
CLOSING OF THE ACQUISITION OF JOINT VENTURE DIAMOND INTERESTS IN CHINA AND
VSE ACCEPTANCE OF CDN $3,500,000 MILLION PRIVATE PLACEMENT
Pan Asia Mining Corp. is pleased to announce it has closed a deal with
China Diamond Corp. (CDC) to acquire the latter's all issued and
outstanding shares. CDC has the rights to earn a 50% interest in three
diamond properties in China, including the producing Changma diamond mine.
The company has also received final acceptance for the acquisition from the
Vancouver Stock Exchange on October 9, 1997. Description of the three
properties which Pan Asia Mining has the right to earn a 50% interest are
as follows:
701 Changma Diamond Mine Joint Venture
- Historically the largest producer of diamonds in China.
- Since 1975, produced over 800,000 carats of diamonds from two adjacent
diamondiferous kimberlite pipes, 40 metres apart.
- Average annual production for the past seven years was approximately
45,000 carats.
- Is currently an open-pit operation about 100 metres deep. Mining can
proceed for another five metres before conversion of the mine to an
underground operation.
- Has historically yielded some exceptionally large stones -119 carats
in 1983, 67 and 66 carats in 1991.
Based on a recent technical review by Fluor Daniel Wright, the shafts,
tunnels, dense media separation equipment and other improvements are
expected to enable the new underground mine to process 500 tonnes of ore a
day for 330 days a year, yielding 168,000 carats per year in each of the
first four years and 146,000 carats per year thereafter.
PAR is required to make total capital contributions of US $3.0 million to
earn a 50% interest in the joint venture. Capital contributions to date
have been US $500,000. Subsequently, depending on the additional
investment contributed by the Company, the interest in the joint venture
could be increased.
702 Xiyu Project Joint Venture
- Consists of the Xiyu kimberlite occurrences, a cluster of seven
diamondiferous kimberlite pipes, the best being Pipe 28;
- Access to the whole Mengyin County of 1,500 square kilometre for diamond
exploration.
- Drilling results indicate the Xiyu pipes will join at approximately 330
meters of depth, forming one large diamond bearing kimberlite pipe.
PAR is required to make total capital contributions of US five million
dollars to earn a 50% interest in the joint venture. To date capital
contributions have been US $250,000.
703 Pingyi-Feixian Diamond Joint Venture
- Consists of 1,620 sq km of exploration area.
- Alluvial diamonds and kimberlite minerals have been discovered throughout
much of this area.
- A total of 2,732 diamonds, of which 56 diamonds are +2 mm size, have been
collected from rocks and unconsolidated alluvial material during previous
exploration work. Previous airborne geophysical surveys identified 496
magnetic anomalies which need to be followed up by detailed exploration work.
For the chart of the Corporate Structure following the acquisition refer to
our website: pansiagroup.com
PAR will conduct ground and airborne magnetic surveys, geochemistry,
mapping and delineation of diamond resources. Currently geologists from
No. 7 Geological Brigade continue with geological exploration work. PAR is
planning to engage a diamond exploration expert to direct the diamond
exploration program in both 702 and 703 joint venture areas. The company is
required to make total capital contributions of US 1.5 million to earn a
50% interest in the joint venture. Capital contributions to date have been
US $95,000.
As previously reported, Pan Asia also has the right to earn a 50% interest
in the Huixian copper/gold mine and the surrounding exploration area in
Zouping County, Shandong Province.
For more information contact Malinda at Tel: (604) 608-6686, Fax: (604)
608-6687 or
e-mail at info@panasiagroup.com.
Toll Free: 1-888-328-8833.
Refer to our website: panasiagroup.com for a more detailed news
release on the closing of the acquisition and the Cdn $3,500,000 private
placement. |
