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Pala Completes Investment in Asian Mineral Resources

Mar 28 2013 12:00AM

Marketwire

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TORONTO, ONTARIO -- (Marketwire) -- 03/28/13 -- Pala Investments Limited ("Pala") is pleased to announce that it has completed the purchase of an aggregate of 247,607,313 common shares of Asian Mineral Resources Limited ("AMR") in connection with AMR's recently completed rights offering (the "Rights Offering").

On March 28, 2013, Pala purchased 158,845,081 common shares (the "Rights Offering Shares") of AMR pursuant to the exercise of its basic subscription privilege in full under the Rights Offering. In addition, Pala purchased an additional 88,762,232 common shares (the "Standby Shares") of AMR pursuant to the standby commitment provided by Pala in connection with the Rights Offering. Under the terms of its standby commitment, Pala had agreed to, among other things: (i) exercise its basic subscription privilege in full under the terms of the Rights Offering; (ii) not exercise any additional subscription privilege under the terms of the Rights Offering; and (iii) purchase all of the common shares of AMR not otherwise purchased pursuant to the exercise of rights under the Rights Offering at the expiration date. The Rights Offering Shares and the Standby Shares, together representing approximately 31.9% of the issued and outstanding common shares of AMR (following completion of the Rights Offering), as known by Pala, were purchased at a price of CDN$0.05 per share for total consideration of CDN$12,380,365.65.

The Rights Offering Shares and the Standby Shares were issued to Pala from treasury by AMR.

Following completion of Pala's purchase of the Rights Offering Shares and the Standby Shares, Pala owns and controls, directly or indirectly, a total of 617,086,554 common shares of AMR and 54,166,667 common share purchase warrants of AMR, representing approximately 79.6% of the issued and outstanding common shares of AMR on an undiluted basis, or 80.9% on a partially diluted basis, as known by Pala.

The purpose of Pala acquiring the securities of AMR is for investment purposes. Under the terms of the investor rights agreement previously entered into by Pala and AMR dated May 25, 2012, Pala has the right nominate two directors to the board of directors of AMR, which it has done. Pala intends to use its majority stake in AMR and its seats on AMR's board of directors to guide and engage the management of AMR in advancing its development of the Ban Phuc Nickel Project and enhancing shareholder value. Pala has no present intention to acquire additional securities of AMR. Depending on its evaluation of the business, prospects and financial condition of AMR, the market for AMR's securities, general economic and tax conditions and other factors, Pala may acquire additional securities of AMR, or sell some or all of the securities of AMR it currently holds, in the open market, by private agreement or otherwise.

Pala's address is 12 Castle Street, St. Helier, Jersey JE2 3RT. For further information please refer to the Early Warning Report posted on SEDAR or contact Gregory Radke at +41 41 560 9070.

About Pala

Pala is a multi-strategy investment company dedicated to investing in, and creating value across the mining sector in both developed and emerging markets. Pala seeks to assist companies in which it has long-term shareholdings by providing strategic advice and innovative financing solutions.

Certain statements in the press release are forward-looking statements and are prospective in nature, including statements with respect to Pala's future intentions regarding the securities of AMR that it owns. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Such forward-looking statements should therefore be construed in light of such factors, and Pala is not under any obligation, 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 applicable law.



Contacts:
Pala Investments Limited
Gregory Radke
+41 41 560 9070





Source: Marketwire