A definitive agreement has been signed by US-based mining and exploration company, Vanguard Mining to buy 80% equity interest in Indonesian company Yupolo Resources in return for a combination of stock and cash.
It is reported that a 3,500hectare limestone and gypsum concession will also be co-developed by Vanguard Mining in Nusa Tenggara Timur, Indonesia.
Closure of the transaction is expected within 45 days after the agreement signing, subject to review of additional satisfactory due diligence. Development of the concession has been planned in four stages, say reports. In stage one, the limestone and gypsum mining are targeted for production of up to 2 million tonnes of limestone and gypsum/year by the second production year.
The investment for the stage ranges between US$2 million (€1.54 million) and US$5 million (€3.86 million).
In stage two, a clinker plant will be established with capacity of 250,000-500,000 million tonnes of clinker/year and the investment ranges between $10 million and $40 million.
Under stage three, a mini cement plant will be established with a capacity of 100,000-200,000 tonnes cement annually and the investment ranges between $20 million and $50 million.
An integrated cement plant with 1-2 million tonnes of cement/year capacity is included in the fourth stage, which has an investment range of $240 million to $400 million.
