Vanguard Mining Corporation has signed a Memorandum of Understanding 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 3500-hectare gypsum and limestone concession in Nusa Tenggara Timur province.
Both companies will promptly enter into a definitive agreement for the contemplated sale and purchase and plan to close this transaction within 45 days after the signing of the definitive agreement, subject to further 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 tonnes while the limestone deposits are approximately 400 million tonnes.
Located in the District of East Solor, Solor Island, Regency of East Flores, the proposed mine spot of the concession is only 4km from the new expanded Menanga Sea Port. Vanguard and Yupolo intend to develop this concession in four stages:
Stage 1 - Gypsum and limestone mining to annually produce up to 2 million tonnes of gypsum and limestone by the second year of production for local markets and exports. Yupolo already has committed buyers.
Stage 2 - Clinker plant with annual capacity of 250,000 to 500,000 tonnes of clinker to meet the demand of cement plants in the local region).
Stage 3 - Mini cement plant with annual capacity of 100,000 to 200,000 tonnes. Annual cement consumption in the surrounding areas is more than 3 million tonnes with double digit growth rate.
Stage 4 - Integrated cement plant with annual capacity of 1 to 2 million tonnes.
Yupolo’s chairman and CEO Choky Simanjuntak says, “We are pleased to cooperate 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.”
Vanguard’s executive vice chairman Quang Le says, “We are very excited at the prospects of this development opportunity with Yupolo Resources and glad that we already have ready buyers for this high-quality gypsum product.” www.vnmcglobal.com