Xuan Wu Signs Letter of Intent with Guo Fa Jiangsu Venture Capital Group Initial Funding of $3.7M
01 October 2009 - 11:30PM
Business Wire
Xuan Wu Group International Holding Company, Inc., (XNWU.PK), a
processor of ballast and limestone, is pleased to announce that it
has signed a letter of intent with the National Development Venture
Capital Co., Ltd. of Jiangsu Province, People’s Republic of China,
to provide equity financing of 25.08 million Rmb or approximately
$3.7 million.
The use of proceeds will be for the purchase of additional
ballast mine that is estimated to possess over 300 million tons of
ballast. The mine’s ballast will be used in either road
construction in Hebei Province or railway construction for the new
Beijing/Shanghai Express train.
Current spot rate on ballast is approximately $8.00 per ton,
equating the mine to be valued at $24 million over its 10-year
lifespan.
The Venture Capital group also has an option to increase its
funding in Xuan Wu’s two other projects, the Quartz Diorite Mine
and its hotel property.
The deal is expected to close after the Harvest Moon Chinese
Holiday (Zhong Qiu Jie).
About Xuan Wu Group International Holding Company,
Inc.
The Company’s subsidiary is engaged in the exploration,
processing, and selling of basalt slip-resistant stones, railway
ballasts, and limestone within the People’s Republic of China.
The Company has 20 year rights to two mines located near
Wulizhuang Village in Hubei, Province. The annual output of each
mine is approximately 300,000 tons.
For further information, please visit their website
www.xuanwu.cn.
Legal Disclaimer
The statements contained in this press release contain certain
forward looking statements, including statements regarding the
company’s expectations, intentions, strategies and beliefs
regarding the future. All statements contained herein are based
upon information available to the company’s management as of the
date hereof, and actual results may vary based upon future events,
both within and without the control of the company’s
management.