LOS ANGELES and FRANKFURT, Germany, April 26, 2010 (GLOBE NEWSWIRE) -- PHIGroup, Inc. (OTCBB:PHIE) (Frankfurt:PR7) (XETRA:PR7) (WKN A0RNQV), www.phiglobal.com/">www.phiglobal.com, an M&A company with diversified holdings in real estate development, energy, natural resources and special situations, announced today that it has signed an agreement to take Linh Thanh Quang Binh Exploiting and Processing High Calcium Carbonate Powder Joint Stock Company, a Vietnamese mining company, public in the U.S. capital markets.
Linh Thanh Quang Binh is the first company in Vietnam and Southeast Asia using state-of-the-art equipment from Italy to produce high calcium carbonate powder from limestone. The plant is located in Chau Hoa Commune, Tuyen Hoa District, Quang Binh Province, adjacent to its raw material quarry, which has estimated deposits equivalent to 100 million tons with projected economic value of $800 million.
The company's products are used in the production of paper, steel, paint, asphalt plastic and are also used for water filtering and environmental remediation. In addition, the company has rights to $20 million worth of construction stone from a nearby quarry. Linh Thanh also is in the process of acquiring a titanium mine and wolframite mine with an estimated valuation of $2 billion.
Linh Thanh's high calcium carbonate powder project enjoys a number of distinctive advantages. In addition to the plant's proximity to the raw material source, this is the only mining project with both limestone and dolomite deposits at the same location. The company's plant has easy and convenient access to a waterway, a highway and a seaport. As the first company in Vietnam using modern production technology, the company has received favorable incentives from the government of Vietnam.
End users of the company's products include the Formosa Plastics Group, one of Taiwan's largest industrial conglomerates, which plans to build a $3 billion stainless steel plant less than 40 miles from Linh Thanh's plant. Also will eventually be the largest bauxite plant to be built in Vietnam. Both of these operations will require enormous quantities of the company's products for their processing activities.
PHIGroup will advise and assist Linh Thanh in its merger and acquisition efforts, capitalization and growth strategy and will receive compensations in cash and stock.
Nguyen Thi Mai Hoa, Chairperson and CEO of Linh Thanh Group, the parent of Linh Thanh Quang Binh, said, "PHIGroup's assistance in getting Linh Thanh Quang Binh listed in the U.S. capital markets and providing access to international funding is instrumental to our strategy and execution plan. We are proud to be the first company in Vietnam and Southeast Asia using state-of-the-art technology to provide high calcium carbonate products to meet the growing demands of this region."
Tai Vo, Managing Director of PHI Vietnam, Ltd., a wholly-owned subsidiary of PHIGroup, stated, "We delight in assisting Linh Thanh Quang Binh with its capitalization plan and believe as a publicly traded company in the U.S. stock market the company will be better positioned to fund its growth strategy."
About Linh Thanh Quang Binh
Linh Thanh Quang Binh Exploiting and Processing High Calcium Carbonate Powder Joint Stock Company is a Vietnamese mining company currently focused on producing high calcium carbonate from limestone in Quang Binh Province, northern Vietnam. The company also has plans to acquire titanium and wolframite mines to expand the company's scope of business.
About PHIGroup, Inc.
PHIGroup develops real estate and natural resources, provides M&A advisory and consulting services and invests in special situations. PHIGroup, which specializes in raising capital and helping take companies public, is developing Philand Ranch, one of the largest master planned communities in Vietnam through its majority owned subsidiary Philand Ranch Limited (Frankfurt:1P8) (XETRA:1P8). This project includes Pointe91, a luxury resort and premium residential community in Quang Nam province in central Vietnam. PHIGroup is also engaged in mining in Southeast Asia through PHI Mining Group, Inc. (Pink Sheets:PHIG). Website: www.phiglobal.com.
Safe Harbor: This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.