Vanguard Mining Corporation to Increase Sand Supply by 200 Million Cubic Meters
Marketwired Yahoo News 24 Sep 14;
Press Release: Vanguard Mining Corporation
NEW YORK, NY and SINGAPORE--(Marketwired - Sep 24, 2014) - Vanguard Mining Corporation (PINKSHEETS: VNMC) announced today that the Company has signed a Memorandum of Understanding with Golden Card Memong Co., Ltd., a Cambodia-based company, to increase its sand supply for both local and export markets.
According to the Memorandum, VNMC will sign a definitive agreement with Golden Card Memong to set up a joint venture enterprise to excavate and sell the sand from a mine with estimated 200 million cubic meters of sand deposits in Stung Hau District, Kam Pong Saum Province, Cambodia. At the average price of S$ 21.23/m3, this mine could amount up to S$ 4.2 billion in total sale, or equivalent to US$ 3.3 billion. At US$ 2.50/m3 net profit, this mine could potentially produce US$ 500 million in net profits over its lifetime.
VNMC will be responsible for securing long-term overseas buyers for the sand produced from the mine, especially Singapore.
Historically, Singapore's land area has increased from 581.5 square kilometers (224.5 square miles) in the 1960s to more than 700 square kilometers today. The government also plans to grow the country by another 100 square kilometers by 2030. Almost all of this land reclamation has been undertaken using sand imported from nearby countries.
The country also needs vast volumes of sand for its massive construction industry, the result of an ongoing property boom in which any building over 10 years of age is potentially at risk of being demolished and replaced by an even larger one.
Sand traders estimate that Singapore is currently importing sand at a rate of 200,000 tonnes per day. Tenders have been put out for another 21 million tonnes of sand, but this is only a drop in the ocean when taking into account the overall land-reclamation projects planned up until 2030. The upcoming Tuas Finger 1 project alone is expected to require one billion tonnes of the product.
Cambodia has exported sand to Singapore before but has encountered problems involving environmental protection and quality control. VNMC intends to overcome these hurdles by strictly adhering to international environmental protection requirements and implementing a tight quality control system.
Mr. Chhay Veth, Director of Golden Card Memong Co., stated, "We are pleased to cooperate with Vanguard Mining Corporation to produce and market sand product from our mine to meet the growing demand of construction and reclamation in the region and believe that this cooperation will bring substantial economic benefits to shareholders of both company."
Mr. Hoang Dinh Vo, (Jack Vo), a Director of the Company, said, "We are delighted to work with Golden Card Memong Co. on this project, which will enable us to substantially increase our sand supply capacity in the foreseeable future."
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, limestone, manganese and iron sand in Indonesia. 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.
