ULAANBAATAR, MONGOLIA--(Marketwired - Nov. 7, 2013) -Undur Tolgoi Minerals Inc. ("UTM" or the "Company")(CNSX:UTM) is pleased to announce that it has entered into an agreement to acquire, through its wholly owned British Virgin Island-registered subsidiary, Jucca Holdings Ltd., a 100% interest in Great Hoard Holdings SARL, a Luxembourg entity that holds a 75% of the share capital of Ashid Munkhiin Zam LLC ("AMZ"), a Mongolian company, in an exchange for 5,363,636 newly issued shares of UTM. AMZ holds road construction, repair and maintenance permits. AMZ intends to seek road construction contracts and tenders in Mongolia.
Road construction is one of the fastest growing industries in Mongolia. The government intends to build over 10,000 kilometers of paved road in the next 10 years. As part of its goal, the government passed a law in 2012 mandating paved roads between Ulaanbaatar and each of the country's 21 province centers by 2016.
Last year Mongolia raised USD$1.8 billion in its first ever bond offering. Shortly afterward the government announced that most of the bond money would be spend on development of infrastructure and allocated USD$335 million to the road budget.
Mongolia's roads officially total 49,294 km, but only about 25% of the roads are currently paved. Most roads are little more than dirt tracks, which are usually dusty and occasionally muddy. By undertaking straightforward grading work, the roads would be quite similar to those servicing many of the mining and outback communities in Australia.
UTM's CEO, Donald Padgett, stated, "UTM is grateful for the support of its largest shareholder, Firebird Management, and its affiliated team in Mongolia, in assisting the company in the identification and incubation of new venture opportunities in Mongolia."
Following completion of the acquisition, UTM will have 64,351,484 shares outstanding.
James Passin, UTM's Chairman, commented, "We are excited to enter the road construction industry in Mongolia. For the benefit of its shareholders, we are committed to building UTM into a significant and successful Mongolian-focused public company. Following a strategic review of the company, the Board of Directors is refocusing the company away from mineral exploration in order to participate in Mongolia's massive infrastructure growth potential."
Disclaimer for Forward-Looking Information
Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
Forward-looking statements and information are based on assumptions that financing and personnel will be available when required and on reasonable terms, and all necessary regulatory approvals and shareholder approval will be obtained, none of which are assured and are subject to a number of other risks and uncertainties.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
Undur Tolgoi Minerals Inc.
Don Padgett
President and CEO
1 760 485 9330
info@undurtolgoi.com
Undur Tolgoi Minerals Inc.
Sabino Di Paola
Chief Financial Officer
1 613 834 6513
sabino@undurtolgoi.com
Don Padgett
President and CEO
1 760 485 9330
info@undurtolgoi.com
Undur Tolgoi Minerals Inc.
Sabino Di Paola
Chief Financial Officer
1 613 834 6513
sabino@undurtolgoi.com
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