NEW YORK and Jakarta, Indonesia / ACCESSWIRE / June 13, 2014 / Vanguard Mining Corporation (Pinksheets: VNMC), http://www.vnmcglobal.com/, today announced that the Company has signed an agreement with PT Mega Kencana Persada, an Indonesian company, to acquire a 75% equity interest in a 330-hecatare limestone concession in Panyabungan Sub-district, Mandailing Natal District, North Sumatra Province, Indonesia,
According to the agreement, VNMC agrees to pay $4,750,000 in a combination of cash and stock of the company for a 75% equity interest in the limestone concession, subject to further satisfactory due diligence. VNMC and PHI Capital Holdings, Inc., a subsidiary of PHI Group, Inc. (PHIL), will be responsible for raising the required capital to develop and operate the limestone mine and PT Cendrawasih will pay its portion of capital contribution from its share of profits from the limestone mine operation. It is estimated that the CaCO3 deposits of the concession amount to approximately 150 million metric tons, subject to an independent technical verification. This contemplated acquisition is part of the Company’s strategic plan to realign and expand its portfolio of mineral asset holdings for long-term growth.
VNMC expects to produce a variety of limestone products from this mine, including quicklime for use especially in metallurgical industry and environmental remediation, hydrated lime for paper technology, construction, agriculture soil and water treatment, precipitated calcium carbonate (PCC) for petrochemical industry, paint, rubber, seafood, among others, nano-precipitated calcium carbonate (NPCC) to process high quality chemical cosmetics and foodstuffs, and coated and uncoated PCC and NPCC for use as additives in industries of asphalt plastic, paper, rubber, paint, cosmetics, foodstuffs and medicines.
Jay Muhd, a principal of PT Mega Kencana Persada, said "We are excited to develop this mine on the back of the Global Industry Analysts, Inc. (GIA) announcing in their comprehensive global report on the limestone market that limestone production in major markets projected to exceed 604.6 billion metric tons by the year 2015 mostly because of its consumption in the cement industry, and exterior and interior decorations due to its ruggedness and widespread utility in households."
Quang Le, VNMC’s Senior Geologist and Executive Vice Chairman, said. "We expect VNMC’s growth in economic terms as a benefit of this cooperation will be reflected in our Company’s valuation and share price."
About Vanguard Mining Corporation
Vanguard Mining Corporation, a Nevada corporation established in 1987, is currently building a portfolio of mineral assets in Southeast Asia, including limestone in Vietnam and gold, copper, limestone, and manganese in Indonesia. The company has also investigated a number of mineral assets in other geographical areas that may potentially create significant value for our shareholders and investors in the near future.
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.
Vanguard Mining Corporation Corp.
SOURCE: Vanguard Mining Corporation