BOGOTA, Colombia, June 20, 2012 (GLOBE NEWSWIRE) -- VSUS Technologies Inc. (OTCQB:VSUT) ("VSUS" or the "Company"), a metallurgical coal company in the Republic of Colombia, announced today they are in the final steps of acquiring their neighboring property. The Company also announces projections for their first year of production.
The Company has been in negotiations with one of its shareholders for ownership of the adjacent mining title believed to have over 115 MM tonne of mostly metallurgical coal reserves. Company president, John Campo, traveled to Colombia this week to take the necessary steps to close the transaction. This acquisition will bring reserves to an estimated total of over 130 MM tonnes.
"This new acquisition will make us more attractive to international investment bankers looking to enter Colombia's growing coal industry. Goldman Sachs $500 MM investment and India's Birla Groups expected $1 Billion investment in the Colombian coal sector is proof that Colombia has the most economically feasible coal projects in the world," commented company president John Campo.
VSUS Technologies expects to produce 30,000 tonnes of coal per month at their wholly owned La Tabaquera coal mine the first year of production; however, they may increase this projection considering the new acquisition.
Assuming a worst case scenario of selling mostly thermal coal at the mine's gate to local buyers, the Company projects $17 MM in revenue with a $4-5 MM profit the first year of production. Adding work units will increase this projection. Original production was projected to be 1000 tonnes per day using one work unit consisting of one excavator with a 2 ton bucket, one loader, and five 32 tonne dump trucks. Each work unit costs an estimated $1,000,000 and could produce $3,000,000 per month assuming metallurgical coal sales at the mine's gate for $100/tonne.
"This new acquisition will make us more attractive to international investment bankers looking to enter Colombia's growing coal industry. Goldman Sachs $500 MM investment and India's Birla Groups expected $1 Billion investment in the Colombian coal sector is proof that Colombia has the most economically feasible coal projects in the world," commented company president John Campo.
The Company will consult with its auditor on its ability to book this new asset for the value of the reserves in the ground. La Tabaquera reserves have an estimated appraisal of $70 MM; the new acquisition is expected to have 6 times as much.
About VSUS Technologies Inc.
VSUS Technologies is a growing company that is acquiring coal concessions in Colombia in order to satisfy the world market demand for coal. Once a concession is acquired and the necessary financing is obtained, the Company will begin all the required environmental and geological studies to get them into production as efficiently as possible. The Company plans to have three revenue producing business units in Colombia: coal mining, coking oven facilities, and docks and river transportation along the Magdalena River. The Company is also exploring allegiances with U.S. universities to study capturing Coal Bed Methane (CBM) in Colombia. For more information on our company visit our new website at www.vsustechnologies.com
Transportation, Logistics and Other Information
With proper financing VSUS Technologies plans to build or acquire wholly owned river loading facilities on the Magdalena River close to our mines. The coal will be trucked to these river ports, and then barged via the Magdalena River to terminals in Barranquilla, Santa Marta, or Cartagena for export. Initially we will use existing service providers while our transportation projects are being developed. The Colombian and Chinese Governments are jointly improving railroads that will facilitate local coal producers' ability to export. After the rail projects and the "Road to the Sun" project are completed, VSUS Technologies will have one of the only coal mines in the World with river, rail, and road access to coal export terminals on both the Atlantic and Pacific Oceans.
Forward Looking Statements
Forward Looking Statements; This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as "anticipate," "seek," intend," "believe," "plan," "estimate," "expect," "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include financing, the future U.S. and global economies, the impact of competition, and the Company's reliance on existing regulations. VSUS Technologies, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.