Advanced Explorations Inc announced that in furtherance to its press release of February 18th 2012 and following recent discussions with its Board and XinXing Ductile Iron Pipes Group Company Ltd that it plans to transfer its Roche Bay iron ore assets into a holding company that will be 100% held by Advanced Explorations Inc.
The Company has reserved the name Savik Iron Mines Limited as the name for the holding company which will act as the operating and funding vehicle for Roche Bay. Savik is the Inuktitut word for knife derived from savirajak, the word for metal. The Company anticipates utilizing Savik and/or similar structures for the management of its other iron ore assets and further believes this restructuring will provide added corporate flexibility in the management and direct funding of its various iron ore projects.
The intent is to form an independent management team with the appropriate skills sets and experience related to the go forward requirements of the Roche Bay Project. The Company awaits final direction from its partner XDIP as to how its potential interest in Savik is to be structured.
Mr John Gingerich President & CEO of Advanced Explorations Inc said that "We have had ongoing discussions with XDIP and a leading Chinese Bank as to the development and structural requirements for the Roche Bay Project. We have determined that the most effective and flexible structure for the future financing and management of the Project is the transfer of AEI's interest into a wholly-owned holding company. In line with our continued commitment to the Roche Bay Framework Agreement with XDIP, the formation of Savik is an important first step towards the progression and essential financing of the Roche Bay Project."
