VANCOUVER, British Columbia, June 16 /PRNewswire-FirstCall/ -- AGA Resources, Inc. (BULLETIN BOARD: AGAO) , a publicly traded mineral exploration company, is pleased to announce that it has signed an Acquisition Agreement with a B.V.I. company to become involved in a Media and Entertainment Joint Venture in China.
On June 14, 2006, the Company signed an Agreement with Triumph Research Limited ("Triumph"), a B.V.I. company, and Beijing Tangde International Film and Culture Co., Ltd ("Tangde"), a Chinese company. According to the Agreement, the Company will issue 3,209,000 shares of common stock in exchange for all of the issued and outstanding shares of common stock of Triumph, by which Triumph will become a wholly owned subsidiary. Triumph has signed a Joint Venture Agreement with Tangde pursuant to which Triumph will invest RMB 5.1Million (about US$600,000) into the Joint Venture and control 51% ownership of the JV. Triumph will also hold three seats out of five on the board of the JV, including Chairman of the Board of Directors. Tangde will invest RMB 4.9 Million into the Joint Venture and control 49% of the ownership. The Joint Venture will mainly invest in the media and entertainment industry in China.
As part of the transaction, the Company will conduct a due diligence investigation of Triumph prior to the Closing. In addition, the Company can elect not to deliver the 3,209,000 new investment shares if Triumph has not funded the RMB 5.1 Million to the JV. After the Closing, the Company intends to participate in the JV through its wholly owned subsidiary, Triumph, and also to continue its exploration of mineral properties in British Columbia, Canada.
About AGA Resources, Inc.
AGA Resources, Inc. is an Exploration Stage Company. The Company has acquired a mineral property located in the Province of British Columbia, Canada and has not yet determined whether this property contains reserves that are economically recoverable. The Company has started exploration. The rock exposure samples have undergone analyses for the detection of precious metals in a certified laboratory and the Company will do further exploration to verify the results.
The Company recently spent C$10,000 for diamond core drilling equipment in order to better pursue its business plan. This equipment will enable the Company to drill for core samples to a depth of 1,400 feet, which will then be analyzed for mineral content.
If we find mineralized material and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans. If we need additional cash and can't raise it, we will either have to suspend activities until we do raise the cash, or cease activities entirely. If we can't find any mineralized material or it is not economically feasible to remove the mineralized material, we will have to cease activities and focus on the new deal which we signed today.
Forward-looking statements
This report contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this report are forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, economic and political factors; developments of the Chinese and North American markets and changes in regulatory matters; our business strategies and future plans of operations; the market acceptance and amount of sales of our products and services; our historical losses; the competitive environment within the industries in which we compete; and our ability to raise additional capital, currently needed for expansion. The Company cautions that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to several important factors.
Zhang, JianPing
Phone: 1-778-322-4332
© 2006 PR Newswire
