Buyer Group International Inc. (BYRG.PK) Lands Massive Opportunity to Assist in Developing Billions in Rare Earth, Executes Letter of Intent on 40% Joint Venture in Greenland 360,000 Acres with Titanium and Other Strategic Minerals
AUSTIN, Texas, Sept. 26, 2012 /PRNewswire/ -- Buyer Group International, Inc. (BYRG.PK) ("BYRG" or the "Company"), is pleased to announce that it has entered into a Letter of Intent dated August 1st, 2012, for a joint venture with certain equity partners and assigns of Caribou Greenland, Corp., whereby BYRG has the option to acquire up to a 40% interest in 360,000 acres near Isortoq, Greenland.
"We are tremendously excited about the potential of Greenland. Not only do we feel that the asset value of the property exceeds our initial investment, we obtain valuable land with large deposits of strategic minerals sought by many other nations such as China, which is currently plowing all corners of the world in search for rare earth resources. We will strive to maintain a competitive presence," said David A. Bryant, BYRG's President.
Preliminary reports prepared by geologist researching the property indicate a large surface strike zone carries roughly 800 million to over a 1 billion tons of ore which in concentrations from sample extractions ranging 20-49% Iron, 6-11% Titanium and 0.10-0.19% Vanadium, amongst other elements subject to a 2.5% smelter royalty.
Under terms of the Joint Venture Agreement, BYRG will arrange to guarantee, contribute or loan $2 million to participate subject to an option to purchase the land for a deposit of $1 million and a final payment of $1 million is due in ten months at 15% per annum. Assets include a profitable reindeer meat processing station and herd valued at $4.7 million, all agriculture and farming rights, full rights to the reindeer herds, and surface access rights to approximately 360,000 acres of land. As proposed, any equity party offering reduced contributions may be settled by the participating interest may be diluted a pro rata basis according to the contributions of all parties. A final 20% of the Joint Venture has been reserved for future parties to be determined or used in adjustment of the equity in the partnership.
Completion of the transaction is dependent upon important contingencies, including BYRG obtaining financing or pending guarantees, of which there is no assurance.
The property is situated roughly at approximately 70 kilometers west of the port town of Narsaq, Greenland, near Isortoq, South Greenland a Territory of Denmark. The area has access to water and port facilities which makes the area attractive to future development of rare earth mining.
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SOURCE Buyer Group International, Inc.