Asia Base Metals has changed the terms of its indirect 90% acquisition of the Vientiane potash project in the Huaxieng-Xaithany area of Laos. 1

The company agreed to the terms in a letter of intent in September but has now amended the agreement to provide for an alternate, deferred payment structure if the vendor expands the property within one year of the transaction.

Asia Base says an expansion of 39sqkm of contiguous mineral rights will bring the Vientiane project to a total of 55sqkm at no additional cost.

The majority interest will cost Asia Base Can$4 million in cash payments and the issuance of 22 million common shares under either payment structure.

If the property is expanded by the vendor on the agreed terms, the consideration will be payable in stages on completion of specific financings, resource reports, feasibility studies and mine construction milestones. If the property is not expanded by the vendor, the consideration will be payable only if later-stage milestones related to the preparation of a feasibility study and mine construction is achieved.

Asia Base president Raj Chowdhry says, “Having visited the Vientiane Potash Project in Laos earlier this year, I am pleased to state that this project is a great opportunity for Asia Base Metals. Since potash is one of the key components of fertilizer and with China, India and Indonesia representing three of the largest markets for agricultural products in the world, and located on the doorstep of Laos, management believes that Vientiane represents a world class opportunity.”

The transaction remains subject to, among other things, approval of the TSX Venture Exchange, required consents being obtained, the company being satisfied with the results of its due diligence and the parties entering into a definitive agreement. The date by which the definitive agreement must be entered into has been extended by these recent amendments.

Potash salt deposits in the Vientiane sedimentary basin have been estimated to be as high as 50 billion tonnes. In 2006, the width of the deposit in nearby Savannakhet province was confirmed to be 70-85 metres by exploratory drill holes.

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