Jimsy, the news on your pick PAR-v:
Pan Asia Mining Corp PAR
Shares issued 48,854,653 Apr 11 close $0.08
Thu 12 Apr 2001 News Release
Mr. James Poe reports
Update -- 701 diamond mine project
Joint venture board meeting
The board of directors of the joint venture partners met in Vancouver
between March 13 and 17, 2001, to discuss and approve, among other things,
the capital contribution schedule pursuant to the 701 joint venture
contract, the necessity to strengthen the management and the establishment
of an escrow system. An agreement has been reached, as follows:
The joint venture board confirmed that the two parties shall continue the
co-operation and that the joint venture contract is in good standing and
operating. It was agreed that the remaining capital contributions to be
made by the company shall be as follows:
$300,000 (U.S.) due by March 31, 2001 (presently held in escrow);
$200,000 (U.S.) due by April 15, 2001;
$350,000 (U.S.) due by June 30, 2001, on a best efforts basis; and
any remaining balance due by Sept. 30, 2001.
James Poe, the president of the company, has agreed to loan the company a
total of five million common shares, at market price, for one year, plus
interest at the rate of prime plus 5 per cent. The shares are currently
held in trust and will be sold privately to further finance the 701 mine
development. In consideration for this loan, the company has agreed to
issue a bonus of 20 per cent, payable in cash or common shares, subject to
regulatory acceptance.
An escrow payment system through D.D. Huang & Associates in Vancouver and
Genesis Law Firm in Beijing (the escrow agent) has been set up whereby the
escrow agent will be responsible for monitoring the use of the funds of the
joint venture company and recommending improvements to the joint venture
company.
In addition, the company's management has decided to consolidate the joint
venture projects known as the 701, 702 and 703 mines into one operation in
order to strengthen the management and financial control.
The company has renewed four of the 703 diamond exploration licences.
To date, the company has the following inventory to report:
A total of 2,111.40 carats of rough stones were obtained from the 701 mine
as follows:
1,697.29 carats of rough industrial stones have been sold for
$7,556.89 (U.S.);
342.61 carats of rough coloured gemstones have been sold for
approximately $31,000 (U.S.)
27.29 carats, being 11 gemstones are to be cut and polished, and
appraised as follows:
Size Clarity
2.47 cts VS2
2.01 cts S12
2.45 cts S11
1.76 cts VS1
2.34 cts VS2
4.02 cts S12
2.65 cts S12
2.25 cts VS2
1.82 cts VS1
1.87 cts S13
3.65 cts S13
----------
27.29 cts
Shareholders will be advised of the results when obtained.
Currently, 44.21 carats of gemstones are being graded and it will be
determined if the stones should be cut and polished.
In addition, a further 387.66 carats were purchased, cut and polished with
the following results:
Size Size Clarity Colour Appraised
rough after cut value
stone and
(ct) polish
(ct)
9.07 2.07 I-1 L/M $11,900
7.50 2.32 I-2 J 21,200
7.48 2.54 VS-2 J 39,000
7.04 2.19 VS-2 L 27,500
2.22 0.94 I-1 I 7,800
2.33 0.82 VVS-2 K 7,250
1.28 0.49 SI-2 F 3,000
1.91 0.71 I-1 K 3,750
1.82 0.65 I-1 H 3,250
1.78 0.63 I-2 G 2,400
---------------------------------------
TOTAL 13.36 $127,050
The cost to the company for the cut, polish and appraised value was
$11,859.18.
Further, a total of 880.95 industrial and coloured rough stones are
currently being graded and sorted.
703 mine
The company is currently waiting for an update from China and shareholders
will be advised as soon as information has been received.
Resignation/appointment of new director
The company announces that Dr. Dong Dong Huang has consented to act as a
director of the company. Dr. Huang is the principal of D.D. Huang &
Associates in Vancouver and a partner in Genesis Law Firm in Beijing. He is
a licensed lawyer in both Canada and China and has been recognized as one
of the authorities on Chinese law in Vancouver and has acted for many
public and private companies in their projects or investments in China. Dr.
Huang was admitted to the British Columbia Bar in 1992 and qualified in the
People's Republic of China in 2000. Having both Chinese and Canadian legal
backgrounds, Dr. Huang will be a great asset to the company. Dr. Huang has
also been appointed chief administrative officer of the joint venture board
and will be responsible for administration in China and monitoring the use
of the funds to the 701 mine. Dr. Huang is currently in China making
progress in changes to administration and management.
The company advises that Donald Nicholson and Zhang Yuling have resigned as
directors and officers of the company, effective March 15, 2001. The
company would like to thank them for their efforts over the past year.
Private placement
The company has arranged a financing, in the form of a private placement,
subject to regulatory approval, and will consist of the issuance of an
aggregate of 2.6 million units at the price of 10 cents per unit. Each unit
will consist of one common share and one warrant exercisable for two years
at the price of 10 cents per share. The proceeds from the financing will be
used for working capital.
Incentive stock options
The company, subject to regulatory approval, will grant to its directors,
officers and employees stock options for the right to purchase up to a
total of 3.9 million common shares at the exercise price of 10 cents per
share, exercisable for five years. The stock options to be granted will be
legended with the required four-month hold as required by the Canadian
Venture Exchange. |
