Printer Friendly

Asia Pacific Resources Ltd. Announces New Strategy.

Business Editors


Asia Pacific Resources Ltd. ("the Company") (OTCBB:APQCF) (TSE:APQ.) (Frankfurt:APQ.) is pleased to announce its subsidiary, Asia Pacific Potash Corp. ("APPC"), last month acquired Special Atchayabats (exploration licenses) for the 192 sq. kms. covering the Somboon and Udon potash resources.

The Company also in June completed a $3 million private placement of treasury shares. These funds will be used for on-going development programs in Thailand and general working capital.

A new strategy has been developed having as its single objective the optimization of long-term shareholder value. There are three main components of the revised strategy:
-- Recognize that project optimization and preliminary design engineering,
contract evaluation and negotiation, corporate structuring and other work must
be completed before construction can begin. The remaining Development Program
has an estimated cost of U.S.$ 19 million (including a U.S. $5 million payment
to the Government of Thailand upon receipt of the Mining Licenses). Although it
is difficult to forecast, a reasonable estimate to complete this work would be
12 to 18 months.

-- Consider the total potash resource (Somboon and Udon) as one asset. This
will allow us to focus on the development of a single, unified and highly
competitive Thai potash producer.

-- Actively encourage the participation of partners with the interest and
strength to finance, build and operate the Somboon Project. Acknowledge that
such companies may require management control and be prepared to negotiate this
in return for a stronger implementation plan with an enhanced probability of
optimum success.

The specific objectives for the remainder of the year are:

-- To strengthen the Company by restructuring the existing

convertible debentures and raising additional funds for the

Development Program.

-- To complete the acquisition of the Mining Licenses.

-- To secure arrangements with a partner to ensure the

development of the Somboon Project on terms which meet the

expectations of our shareholders.

-- To continue to strengthen the management team as necessary.

During the past year world potash production and international trade increased by 2% and 3% respectively. Much of the growth occurred in the Asian markets of most interest to the Company. Annual potash consumption in these markets is currently estimated by the International Fertilizer Association at about 13.9 million tonnes and is forecast to increase to 16.1 million tonnes by 2005. Selling prices remained relatively firm and are expected to increase modestly over the next few years. These projections confirm our belief that there will be a ready market for Somboon products. There are no other competitive green-field projects being developed in the region and we anticipate that the proposed Somboon Mine will be a very cost competitive supplier to the Asian potash markets.

Robert G. Connochie, Chairman, President and Chief Executive Officer

The information provided in this news release may contain forward-looking statements within the meaning of the Safe Harbour provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on Asia Pacific Resources Ltd.'s current expectations and beliefs and are subject to a number of risks and uncertainty that can cause actual results to differ materially from those described in the forward looking statements.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Geographic Code:1CANA
Date:Jul 10, 2001
Previous Article:Fitch Places Comcast's Ratings on Rating Watch Negative.
Next Article:Fitch Assigns `AA-' Rating To PMI Debt Issue.

Related Articles
Feeding the tigers: the push for Canadian military aid sales in Asia.
Asia Pacific Resources: Interim Mandate Signed With International Finance Corporation - IFC.
Asia Pacific Resources Ltd.: Corporate Update.
Asia Pacific Resources Ltd.: Completion of Funding by Olympus Capital and Crew.
Asia Pacific Resources Project Update.
Asia Pacific Resources Announces Private Placement of $2.2 million.
Asia Pacific Resources Ltd. Announcement.
Asia Pacific Resources Conference Call-June 16.
Asia Pacific Resources Conference Call-March 10, 2005.
NAI China team tours US.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters