LOS ANGELES, and JAKARTA, Indonesia, May
12, 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 additional coal mine assets from PT Dian Anugrah Pratama
(DAP), an Indonesian corporation with headquarters in Jakarta.
According to the agreement, PHI Energy will acquire total
estimated mineable coal reserves of 33,000,000 metric tons located
in West Sumatra, Kampar, and
South Kalimantan, Indonesia, from
DAP in exchange for $US 3,000,000 in
cash and 47 million shares of common stock of PHI Energy
Corporation. This new purchase agreement includes the
previously announced 10,000,000 metric tons located at Kecamatan
Kapur IX, Kabupaten Lima Puluh Kota, Propinsi Sumatera Barat,
Indonesia. For reference purposes,
the pre-production estimated value of the reserves is approximately
$US 85,000,000 whereas current market
price of steam coal GCV6300-6100 FOB Indonesia is approximately
$US 80 per metric ton.
This transaction is to close on May 31,
2011, at which time PHI Energy will deliver 47 million
shares of its common stock and give two promissory notes in the
amounts of $2,000,000 and
$1,000,000 due and payable to DAP 45
to 150 days after closing. As part of the agreement, PHI
Energy will register 12% of its then issued and outstanding common
stock with the Securities and Exchange Commission for the benefits
of DAP, AXNG, PHI Group and their shareholders.
Herman Koswara, Director of DAP, said, "We are pleased to
contribute additional coal assets towards PHI Energy's growth
strategy and believe by working together we will be better
positioned to create substantial value for all parties."
Allen Wu, Chairman of PHI Energy
Corp, said, "The addition of the DAP coal assets to PHI Energy's
portfolio is part of our plan to secure sizable sources of coal
supply to meet the demand of potential long-term off-take
contracts. We are confident that this transaction will bode well
for all our shareholders."
About PHI Energy
Founded originally in 2005 as Providential Oil & Gas, Inc.,
PHI Energy Corporation has previously been engaged in oil and gas
activities in North America. A
subsidiary of AXN Group, LLC and PHI Group, PHI Energy is currently
focused on coal mining and trading. Website:
www.phienergycorp.com.
About DAP
Established in May 2009 by a group
of mining experts and geologists who have long working experience
in various Indonesian national mining companies, PT. Dian Anugrah Pratama is an Indonesian company
focused on coal mining and coal trading. Website:
www.dapcoal.com.
About PHI Group
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 engages in gold mining through 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.
Contact:
Timmy Phan
+1-714-843-5457
info@phiglobal.com
SOURCE PHI Group, Inc.