ASFR Secures Cornerstone Investor
The directors of ASF Group Limited (the "Company") are pleased to announce that ASF Resources Pty Ltd ("ASFR"), a wholly-owned subsidiary of the Company, has entered into a conditional Share Subscription Agreement (the "Subscription Agreement") with Yongbin International Holdings Limited ("YIH") for the acquisition by YIH of a 20% interest in ASFR by subscribing A$6 million as new equity.
The Company has received from YIH a non-refundable deposit of A$1 million under the Subscription Agreement. The balance of the subscription monies is required to be paid within three months from the date of the Subscription Agreement.
The Subscription Agreement is conditional upon approvals from the relevant regulatory authorities and any other approvals that may be required.
Mr Yongbin Lin ("Mr Lin"), the beneficial owner of YIH, has been appointed a director of ASFR on 25 November 2010 pursuant to the Subscription Agreement.
Mr Lin, a successful entrepreneur who has extensive business experience and relationships in China, is engaged in a variety of businesses including mineral resources, real estates and finance. The directors welcome Mr Lin to the board of ASFR and believe that he will make a valuable contribution to the affairs of ASFR, and in particular to its future development.
Funds received will be used as working capital by ASFR. Following receipt of these new funds, ASFR intends to further investigate its mineral interests in WA and to consider potential investments in other mineral resource projects.
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