Advanced Explorations Inc. (TSX-V: AXI and OTC: ADEXF) released more blockbuster news this morning with the announcement of a second strategic partner to develop its portfolio of proven iron ore projects. Today’s release outlines Shandong Fulun Steel Companys’ investment of $2.8 million into Advanced at a price of $0.40 per share, as well as the framework for mutual cooperation in the potential development of AEI’s other iron ore projects not pursued by its recently announced strategic partner, XinXing Pipes Group Ltd. (“XXP”).
Shandong Fulun Steel Company Limited is a private company based in China with annual revenue of approximately $1.85 billion, fixed assets of around 15.8 billion yuan ($2.2 billion US) and employs roughly 7,000 workers.
Commenting on the news, Mr. John Gingerich, CEO of Advanced Explorations stated: “We are extremely pleased that we have successfully expanded our network of support in the Chinese steel industry. Building a relationship with Shandong Fulun Steel provides a broader range of development opportunities for our projects and iron ore assets. Our recently announced strategic agreement with XinXing Pipes Group provides a solid foundation to build the Company and a clear framework for mutually beneficial project development. We expect the relationship with Fulun Steel to compliment the lead efforts of our strategic partner, XXP. AEI has established supportive partnerships and a valuable team from which to grow the company and move our assets forward to development. In concluding this deal, the Company believes it now has the networks and development commitments in place to pursue an aggressive growth agenda without the need of additional near term financings. Management will now focus on implementing its strategic agreements and growing value (share price) for our shareholders.”
