JAKARTA (Yosefardi) – Vanguard Mining Corporation (VNMC) has on Wednesday (September 10) 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 tons while the limestone deposits are approximately 400 million metric tons.
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 also intend to 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. They will 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.
Then, VNMC and Yupolo will set up an 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.