BOGOTA, Colombia, May 31, 2012 (GLOBE NEWSWIRE) -- VSUS Technologies Inc. (OTCQB:VSUT) ("VSUS" or the "Company") President, John Campo, commented, "As a relatively unknown company, we understand the need to keep shareholders updated. 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 Technologies Inc. is focused on the acquisition and development of high-quality metallurgical coal properties in the Republic of Colombia. We own 100% of La Tabaquera mine in Colombia with an estimated 17 MM tonnes of reserves, 70% metallurgical and 30% thermal coal. These reserves were appraised by a licensed mining engineer in Colombia for an estimated gross value of US$ 70 MM "in situ" in the ground.
The Company has signed an LOI to purchase the neighboring property with expected reserves of over 100 MM tonnes. We anticipate closing this acquisition in the very near future.
There has been significant interest in the Colombian coal sector by international mining companies and investment bankers. South Africa's Continental Coal acquired a 50% joint venture interest in a metallurgical coal mine. According to their press release, "Sales of hard coking coal are made at the mine's gate with current margins of about 75%."
Brazilian miner Vale said on Monday it agreed to sell its thermal coal assets in Colombia for $ 407 MM to a unit of Colombian Natural Resources, a mining company controlled by U.S. investment bank Goldman Sachs. Goldman Sachs already owns a stake in a railway and mines in the same area. Goldman Sachs has been quietly accumulating coal properties in Colombia for the past few years. 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.
Due to the high quality of our metallurgical coal reserves, the Company 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 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 that our current market price. 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.
The Company has increased its authorized shares in preparedness for these near term acquisitions. We have no plans to enter into any financing that could have a negative impact on our shareholders. The increase was done with the long term view of executing our business plan to take advantage of the huge roll up opportunities both in Colombia and the U.S.
As you are aware, we have begun our environmental impact studies for La Tabaquera. We anticipate completing these studies and applying for our mining permit within three months of receiving the necessary financing. We have been in extensive talks this week with financiers that are willing to provide favorable financing.
The Company would like to thank our shareholders for their continued support as we move into the next phase of our development.
Sincerely,
John Campo, President
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
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.