VSUS Technologies Inc. (OTCQB: VSUT) said May 31 that recent Goldman Sachs interest in the Colombian coal industry has brought some new attention as it tries to develop coal mining operations in that country.
“As a relatively unknown company, we understand the need to keep shareholders updated,” said VSUS President John Campo. “Due to the large interest from international investors in the Colombian coal sector, we wanted to provide an overview of our company for both retail and institutional investors taking a closer look at VSUS Technologies Inc.”
VSUS is focused on the acquisition and development of high-quality metallurgical coal properties in Colombia. It owns 100% of the La Tabaquera mine with an estimated 17 million tonnes of reserves, 70% of which are met and 30% are thermal coal. The company said it has also signed a letter of intent to purchase a neighboring property with expected reserves of over 100 million tonnes. It anticipates closing this acquisition in the very near future.
VSUS noted that South Africa’s Continental Coal is acquiring a 50% joint venture interest in a metallurgical coal mine in Colombia. Also, Brazilian miner Vale said recently that it agreed to sell its thermal coal assets in Colombia to a unit of Colombian Natural Resources, a mining company controlled by Goldman Sachs. Goldman Sachs already owns a stake in a railway and mines in the same area, VSUS said.
“Goldman Sachs has been quietly accumulating coal properties in Colombia for the past few years,” said VSUS. “It is important to note that Vale, the largest iron ore producer in the world, is selling the mines because thermal coal, used to generate electricity, is not part of the company’s core business. They are keeping their more valuable metallurgical coal assets.”
VSUS said it has received an informal offer, through one of its shareholders, from a subsidiary of a “major international energy conglomerate” for the purchase of La Tabaquera. The company said it will weigh all options including being acquired.
“We are in talks with a company that owns producing oil wells in Wyoming that would like to be acquired by VSUS Technologies at a valuation far greater than our current market price,” the company added. “The oil company believes mutually we can raise funds to increase their production from 40-50 barrels of oil per day to 400 barrels. This cash flow, along with our assets, will make us more attractive to institutional investors and will allow us to acquire additional coal properties in Colombia as well as producing oil wells in the U.S.”