LOS ANGELES, and JAKARTA, Indonesia, April 21, 2011 /PRNewswire/ -- PHI Energy Corporation, a minority owned subsidiary of PHI Group, Inc., (OTCQB:PHIE), a company engaged in M&A advisory services, real estate development, mining, energy, and in partnership with AXN Group LLC, (AXNG) announced today that it has signed an asset purchase agreement to acquire coal mine assets from PT Dian Anugrah Pratama (DAP), an Indonesian corporation with headquarters in Jakarta.
According to the agreement, PHI Energy Corporation will acquire an estimated mineable coal reserve of 10,000,000 metric tons located in an area of approximately 423 hectares, at Kecamatan Kapur IX, Kabupaten Lima Puluh Kota, Propinsi Sumatera Barat, Indonesia, from DAP in exchange for 20,000,000 shares of common stock of PHI Energy Corporation valued at $1.00 per share.
The closing of this transaction is scheduled to take place on May 7, 2011. As part of the agreement, PHI Energy Corporation is irrevocably committed to filing a registration statement with the United States Securities and Exchange Commission to become a fully reporting publicly traded company and will do so within 90 days following the closing.
PHI Energy Corporation also agrees that, during the first 60 days immediately following the initial effective trading of its common stock, if the average closing price of the Company's stock falls below $1.00 per share, the Company agrees to issue additional shares of its authorized but unissued common stock to DAP such that the total value of all the shares of common stock received by DAP will be equal to a minimum of $20,000,000.
Sample analysis data of the coal assets acquired show ash content of 10.66%, total sulfur 0.97%, total moisture 4.78%, volatile matter 46.36%, fixed carbon 41.43% and caloric value of 7,338 Kcal/kg.
Herman Koswara, Director of DAP, said, "We are pleased to participate in PHI Energy Corp's growth strategy through this relationship and look forward to creating substantial value for all parties involved."
Allen Wu, Chairman of PHI Energy Corp, said, "The acquisition of the DAP coal assets is the first step of our plan to engage sizable sources of coal supply to meet the demand of potential long-term off-take contracts. We are confident that this transaction will bring significant economic benefits to our shareholders."
About PHI Energy Corporation
Founded originally in 2005 as Providential Oil & Gas, Inc., PHI Energy Corporation has been engaged in oil and gas joint ventures with various U.S. companies in Texas and California. The Company is a majority owned subsidiary of AXN Group, LLC, a global investor in natural resources sector, encompassing oil & gas, forestry/timber, and mining. Website: www.phienergycorp.com
About PT. Dian Anugrah Pratama
PT. Dian Anugrah Pratama is an Indonesian company focused on coal mining and coal trading. Currently the Company's mines are in West Sumatra, Indonesia with estimated reserve about 40 million metric tons. For further inquiry, please call +62215220953 or +6283186230188, or email [email protected].
About PHI Group Inc.
PHIGroup (OTCQB:PHIE) provides M&A advisory and consulting services, develops real estate and natural resources and invests in special situations. PHIGroup takes companies public in the U.S. and Europe through its subsidiaries PHI Capital Holdings Inc. and PHI Vietnam Holdings Ltd, develops Pointe91, a luxury resort and premium residential community in Quang Nam province, and other real estate projects in Vietnam through PHILand Ranch Ltd. (www.PHILandranch.com). (Frankfurt Stock Exchange:1P8), and is engaged in mining activities through its majority-owned subsidiary PHI Gold Corporation (Pinksheets: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.
SOURCE PHI Group, Inc.