Asia Broadband Inc. (OTC:AABB) Stock Trends Lower: Here is Why
The mining sector has always been one of the sectors that has been on the radar of investors, and the focus has been more concentrated in the past year owing to volatility in commodity prices. On Thursday, quite a number of companies in the sector were in the news for one reason or another.
One of the companies that could be worth tracking at this point is Asia Broadband Inc. (OTC:AABB), owing to the developments from yesterday. The company announced yesterday that it had inked a letter of intent to acquire a property with high potential in the prolific mining zone located in Hostotipaquillo, Jalisco, Mexico. The acquisition target is spread across an area of as much as 4081 hectares and is named Piccachos IV. It is situated in an area that is being developed at a rapid pace and is adjacent to the Los Ricos South property, owned by GoGold Resources Inc.
In the news release yesterday, the company noted that the Piccachos gold property was another potential high-yield asset that could be added to Asia Broadband’s portfolio. It ought to be noted that it would also be part of the company’s strategy to get into expansion mode through the acquisition of gold-producing assets. The ultimate aim of the move by the company is to boost its holdings of physical gold.
The company also announced that in the upcoming weeks it would also conduct due diligence pertaining to the transaction. It would also carry on negotiations to take over new mining concessions. Perhaps more importantly, the company revealed that in the coming weeks, Asia Broadband expects to report high-grade assay results from the due diligence process conducted at the property. The President and Chief Executive Officer of Asia Broadband, Chris Torres, spoke about the latest acquisition as well. He noted that the acquisition would constitute a major strategic acquisition for the company’s portfolio of mining properties. Torres went on to note that that acquisition would also help in the growth of its operations and potentially lead to profitability.
On August 22, Asia Broadband announced that it had received a second substantial delivery of mining equipment for use at its facility located in Etzaltan, Mexico. The company also revealed at the time that the installation preparations had also been going on after it received the initial processing plant deliveries as well as laboratory analysis equipment for mineral analysis.
Those initial deliveries had been received by the company in recent months. The progress that the company managed to make towards the completion of the plant followed the facility tours and meetings that it had embarked on with mining processing manufacturing companies in China.
During the course of those visits, Asia Broadband verified and secured the deliveries of the equipment for the Etzaltan plant. Additionally, the trip to China also helped the company establish vital contacts within the global mining industry. It could be a good time to keep an eye on the Asia broadband stock.
