TORRANCE, Calif.--(BUSINESS WIRE)--E&M Group, Inc. (OTCBB:EMGR) is pleased to report that it has ratified a share exchange agreement with PT. E&M Indonesia, an Indonesian mining company. By acquiring PT.E&M Indonesia, E&M Group will take the major step forward to become a major player in producing iron sand and zircon. We are looking forward to expanding our operations in Indonesia to grow our business and, furthermore, increasing our shareholder value.
Both companies and their shareholders are expected to benefit from increased scale and enhanced capital markets profile. Discussing the acquisition, Jooin Kim, E&M Group’s Chief Executive Officer said,
“The mining project E&M to proceed in the south offshore of Sukabumi in Indonesia is a very attractive and promising project along with current booming mining industry. Difficulties we had on developing untapped mining reserves due to hard work environment, lack of funds and technology can now be resolved with accumulation of our unique technology which enables to develop buried ironsand at minimal cost and great profit will be generated for not only for our company but also for mine owners. Our unique networks and relations with private business sectors in China will also take a big part in distribution of the ironsand.”
"There is still a huge gap between the supply and demand for zircon and the price growing as a result. In fact, the price of zircon exited 2010 above $1,000 per ton and has gone up to $2,400 per ton in the third quarter of this year. Credit Suisse, in their 3QT 2012 Commodities Quarterly, has predicted that the price of zircon will increase up to $3,500 per ton by the end of year 2013. Zircon mine, which will be our main projects, will become a major driver the company’s future growths as zircon price is expected to grow.”
Forward Looking Statements:
Information contained herein regarding optimism related to the business, expanding exploration, development activities and other such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the safe harbors created thereby. While E&M Group, Inc. believes such statements are reasonable, they are based on current expectations, estimates and projections about the Company’s business and are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market prices for the Company’s mineral products, domestic and international business and economic conditions, and other risk factors listed in the Company’s Securities and Exchange Commission (SEC) filings under “risk factors” and elsewhere.