Fortis Mining to fast track due diligence on acquisition of...

Fortis Mining to fast track due diligence on acquisition of Kazakhstan potash assets

Thursday, February 24, 2011

Fortis Mining (ASX: FMJ) is being very proactive in speeding up the due diligence process on the Kazakhstan potash assets, with some senior personnel soon to depart for the country.
Fortis has already engaged local and international advisers to assist in the due diligence process.

In addition to an onsite inspection of assets as well as a detailed legal review, Fortis will be meeting key parties to the transactions, and most importantly, government officials from the Republic of Kazakhstan.
The assets are strategically well placed, positioned to serve the largest Asian potash markets, with one mine sited just 14 kilometres from the national rail link to China.
Owing to historical exploration and mining in the region, some infrastructure already exists.
The acquisition involves proprietary and legal rights to two Kazakhstan potash assets through a 75% shareholding in Hong Kong based company, Ji�an Resources Investments Limited.
Ji�an Resources has the right to purchase 100% of the shares in Wiyot SA, a Panamanian company which owns 95% of the shares in Bates Potash Co. Limited, who in turn holds 100% of rights to the potash assets.
The purchase price for the acquisition of Ji�an Resources will be paid for via a $1 million deposit and the issue of 40 million shares on completion of the transaction.
The purchase price to complete the Wiyot SA contract is still to be finalised as it is subject to a number of condition precedents and variable contractual terms.
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