Vanguard Mining Corporation Signs Definitive Agreement to Acquire Gypsum and Limestone Mine in Indonesia
NEW YORK, NY and JAKARTA, INDONESIA--(Marketwired - Sep 10, 2014) - Vanguard Mining Corporation (PINKSHEETS: VNMC) today announced that the Company has signed a definitive agreement to acquire an 80% equity interest in Yupolo Resources, an Indonesian company, in exchange for a combination of cash and stock, and co-develop a 3,500-hectare gypsum and limestone concession in Nusa Tenggara Timur, Indonesia. VNMC expects to close this transaction within 45 days after the signing of this definitive agreement, subject to additional satisfactory due diligence review.
The gypsum deposits at this concession are of high quality (purity of 85 - 95% CaSO4.2H2O) and estimated to be in excess of 30 million metric tonnes while the limestone deposits are approximately 400 million metric tonnes.
Located in the District of East Solor, Solor Island, Regency of East Flores, Province of Nusa Tenggara Timur, Indonesia, the proposed mine spot of the concession is only four kilometers from the new expanded Menanga Sea Port.
VNMC and Yupolo Resources intend to develop this concession in four stages:
Stage 1:
Gypsum and limestone mining are targeted to produce up to 2 million MT of gypsum and limestone per year by the second year of production. Yupolo Resources already has committed domestic buyers. It also plans to export the gypsum product to neighboring Southeast Asian countries. Indonesia currently imports gypsum to East Java at US$ 38/MT CIF and to South Sulawesi at US$ 42-45/MT CIF. Investment range: US$ 2 - US$ 5 million.
Stage 2:
Set up a clinker plant with a capacity 250,000 to 500,000 MT of clinker per year to meet the demand of cement plants in the local region. Investment range: US$ 10 - US$40 million. This stage is a development step and preparation prior to stage 3.
Stage 3:
Set up a mini cement plant with a capacity of 100,000 to 200,000 MT cement per year. Cement consumption in the surrounding areas is over 3,000,000 MT per year with a double-digit growth rate. Investment range: US$ 20 - US$ 50 million. This stage is a development step and preparation prior to stage 4.
Stage 4:
Integrated cement plant with capacity of 1 to 2 million MT of cement per year, mostly to serve East Indonesia market and export to the Northern part of Australia. Currently, cement price in East Indonesia is the highest in the region due to cement scarcity and high transportation cost. This stage will put VNMC and Yupolo Resources to be the first integrated cement plant in East Indonesia. Investment range: US$ 240 - US$ 400 million.
Choky Simanjuntak, Chairman and CEO of Yupolo Resources, said, "We are pleased to have reached this milestone in officially signing the definitive agreement with Vanguard Mining Corporation to develop this concession and are confident that our products will be able to meet part of the growing demand of gypsum, limestone, clinker and cement for the domestic as well as the export markets."
Quang Le, Executive Vice Chairman of VNMC, said, "We are delighted to partner with Yupolo Resources to develop this mine and believe that the mineral quality and favorable logistics at this location will make our products very competitive in the regional Southeast Asian markets."
About Vanguard Mining Corporation
Vanguard Mining Corporation, a Nevada corporation established in 1987, is currently building and developing a portfolio of mineral assets in Southeast Asia, including gold, copper, gypsum, limestone, and manganese in Indonesia as well as sand in Vietnam. The company has also investigated mineral asset opportunities in other geographical areas. http://www.vnmcglobal.com
Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
