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HONG KONG and BELLINGHAM, Wash., April 5, 2013 (GLOBE NEWSWIRE) -- Asia Properties, Inc. (API) OTCQB: "ASPZ" today announced the execution of a Memorandum of Understanding "MOU" to acquire a company with mining interests in Peru.
The target company, Wonderland Limited owns a 100% share of Oriental Expansion Limited (OE), which has a management contract to provide coordination services for exploration, mining, transportation and exportation for the Siu Ku Mine in Peru, owned by SK Mining Peru S.A.C. For providing such services, OE will derive US$15 per ton of iron ore exported. OE also has an agreement to provide services for a gold mining operation, in which the service fee is 30% of the net profit of the sales of the gold concentrate from the gold mine. SK Mining Peru S.A.C. has a Sales Agreement with China Railway Material Group Co. Ltd to supply Iron Ore and other metal ores.
In conducting pre-Memorandum of Understanding due diligence, OE has determined that API's assets and mining claims is $1.00 per share. Therefore, the terms for the acquisition of 100% of the shares of the company are for 161,180,000 restricted shares of ASPZ at a deemed price of USD $1.00 per share or US$ 161,180,000. The MOU will have a term of 90 days whereby both sides will conduct due diligence and usual corporate processes before entering into a Sales and Purchase Contract
Daniel McKinney, CEO of API, commented, "The board decided to pursue this deal pursuant to our business plan of strategic mining acquisitions in friendly jurisdictions. API was also gratified by the $1.00 per share valuation of our assets by OE as we believe our market capitalization is undervalued. Our management team and consultants have extensive experience and success in this sector and we plan an aggressive roll up of mining properties."