MERRITT ISLAND, FLORIDA--(Marketwire - Oct. 25, 2012) - Alternative Energy Partners, Inc. (OTCBB:AEGY) announced today that it has entered into an agreement to acquire Safford Acquisition I Corp., which has contracted to acquire a mineral lease on 160 acres of land in Safford, AZ., which it intends to develop, mine and extract gold and other precious metals identified on the site, and then refine and sell the resulting metals. An existing independent appraisal of the ore in place on the site is in excess of $600 million. Closing is subject, among other items, to full due diligence by AEGY, verification of the ore in place by independent assay and verification of the costs of extraction. Closing also is subject to completion of a 1:100 reverse split by AEGY and the amendment of its Articles to increase the authorized common stock.
As consideration for the acquisition, AEGY will issue 100 million shares of post-split common stock, valued at $5 million based on the closing price of AEGY on October 22; will provide all of the working capital to develop the site; will retain the original seller of the mineral interest to develop and mine the site in exchange for 1/3 of the net profit; and will pay a royalty of 10 percent of net profits to the seller. The acquisition is expected to close no later than November 30.
About Alternative Energy Partners
Alternative Energy Partners is focused on sourcing, marketing and distributing renewable alternative energy solutions on a national and international basis as well as developing and marketing other commodities. Alternative Energy Partners is publically traded on the NASDAQ OTC (OTCBB:AEGY). For more information please visit www.aenergypartners.com.
Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21 E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that these forward-looking statements involve uncertainties and risk that could cause actual performance and results of operations to differ materially from those anticipated. These risks are set forth in the Company's most recently filed form 10-K and Form 10-Q reports. The Company assumes no obligation to update the statements contained in this release except as required by applicable securities disclosure rules. The Company's SEC filings are available at http://www.sec.gov.