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.
Safe Harbor Statement
Information in this news release may contain statements about future expectations, plans, prospects or performance of Buyer Group International, Inc. that constitute forward-looking statements for purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be", "expects", "may affect", "believed", "estimate", "project" and similar words and phrases are intended to identify such forward-looking statements. Buyer Group International, Inc. cautions you that any forward-looking information provided by or on behalf of Buyer Group International, Inc. is not a guarantee of future performance. Completion of the transaction is dependent upon important contingencies, including completion of financing, of which there is no assurance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. Buyer Group International, Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Buyer Group International, Inc. 's control. In addition to those discussed in Buyer Group International, Inc.'s press releases, public filings, and statements by Buyer Group International, Inc.'s management, including, but not limited to, Buyer Group International, Inc.'s estimate of the sufficiency of its existing capital resources, Buyer Group International, Inc.'s ability to raise additional capital to fund future operations, Buyer Group International, Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities, and in identifying contracts which match Buyer Group International, Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. Buyer Group International, Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
SOURCE Buyer Group International, Inc.