Wits Basin Executes $45 Million Letter of Intent

MINNEAPOLIS - Wits Basin Precious Minerals Inc. reported today that London Mining Plc, a international mining and development company for the steel industry, has agreed in principle, subject to due diligence and finalization of definitive documentation, to become a 50/50 joint venture partner for the Company's iron ore project located near Maanshan, Anhui Province in the People's Republic of China.
Under the terms of the agreement, London Mining would provide US$45,000,000 in exchange for a 50 per cent equity interest in the project. London Mining would have appropriate board representation as well as customary and expected ownership rights in the joint venture. Following completion of acceptable due diligence the parties believe they can close the transaction within six weeks.
"We are thrilled to be able to finance this revenue-producing and cash flow-positive project with London Mining," commented Wits Basin CEO Stephen D. King. "London Mining has focus on and expertise in the iron ore industry and we are excited to be uniquely positioned in acquiring this proven China-based iron ore business. Based on current iron ore spot pricing and the drill-indicated resources, we believe this project will be cash-flow positive in excess of US$30 million in the first twelve months of operation."
The company's address is 900 IDS Center, 80 South 8th Street, Minneapolis, MN 55402, 612-349-5277, fax: 612-395-5276. www.witsbasin.com.