Wits Basin Amends Bates-Hunter Mine Contract and
Plans to Review its Gold Properties Strategy
Wednesday, February 5, 2008 7:06am EST MINNEAPOLIS--(BUSINESS WIRE)--Wits Basin Precious Minerals Inc. (OTCBB: WITM) is pleased to announce it has recently amended its Purchase Agreement relating to the Bates-Hunter Mine in Central City, Colorado. Under the new terms, the closing date for the acquisition is extended to June 30, 2008. The purchase price has also been amended so that a cash payment of CDN$250,000 that was previously due at closing could now be included in a promissory note that will be issued at closing. The promissory note enables the Company to defer all payments of principal and interest until the earlier of January 2010 or the date the mine enters into production. The Company has spent approximately US$2.5M to date on underground drilling, surface drilling, rehabilitation and dewatering at the mine. For more information regarding the amendment, please see the Company’s Form 8K filed with the Securities and Exchange Commission. The Company also announced that it intends to study various strategic methods to maximize value for its gold properties, including both the Bates-Hunter Mine and the FSC gold exploration project in South Africa. About the Bates-Hunter Mine The Bates-Hunter Mine is located in Central City, Colorado, approximately 35 miles west of Denver. The Bates Vein was the second lode discovered in Colorado and helped spark the great Colorado gold rush of the mid-1800s. Famous for production from high-grade gold ore shoots, it has been estimated that more than 4,000,000 ounces of gold were produced in the Central City Mining District between 1859 and 1947, with approximately 95% of production prior to 1904. During the early 1930's, the mine was still in production but was shut down due to litigation between the mine owner and operator. In 1942, a WWII production limitation order (#208) effectively shut down gold mining in the area and throughout Colorado and the United States. The nine principal veins that underlie and are controlled by the Bates-Hunter property have historically produced approximately 750,000 ounces of gold. A 1930’s report from the 745-foot level included an average of 27 samples that assayed 1.37 ounces per ton gold. ____________________________________________________________ About Wits Basin Precious Minerals Inc. We are a minerals exploration and development company holding interests in three 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 The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. 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. These risks and uncertainties include, among others, the Company's and China Global Mining Resources Ltd.’s ability to obtain or maintain regulatory approvals; the Company's ability to obtain necessary financing; the Company's and CGMR's ability to complete the various mining project acquisitions in the People's Republic of China, which are subject to execution of final documentation, completion of due diligence and receipt of necessary financing; and other risks and uncertainties described in the Company's filings from time to time with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements. In addition, 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 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 already discovered and recovered by others in the same region of the planned areas of exploration. Further, 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 we face 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. |