Zentric signs LoI to buy 90% stakes in Bangun Laksana

Hong Kong-based Zentric, Inc has signed a letter of intent (LoI) to acquire a 90 percent stake of CV Sembilan Bangun Laksana, a mine management company in Indonesia. The deal also allows Zentric to secure lead ore raw material supply for battery production for next ten years, company President William Tien said.

Sembilan Bangun Laksana controls a lead ore mine in Indonesia as well as a valuable export license for lead ore. Assay results has determined that the mine contains in excess of 1 million tons made up of 27 percent lead ore, 45 percent zinc and 1 percent to 7 percent gold. Lead ore currently sells for a minimum of US$2000 per ton. Currently 1000 tons or $2 million are being mined annually.

"Our overall strategy is to become vertically integrated Zentric (HK) Limited has secured the lead ore that is required for our battery production for at least the next 10 years. Lead ore represents 60 percent of the cost of each lead acid battery so this acquisition provides Zentric with a competitive advantage over the competition,? said Tien.

Jeff Mak, CEO of Zentric, Inc. adds, "Zentric production facilities require only 10 percent of the lead ore production so we will be in a position to sell the excess to other lead acid battery manufactures in China at more than 50% gross margins. We can also increase the volume mined if demand for the lead ore exceeds our current production."

Zentric is in the process of completing the due diligence on this acquisition and has commissioned a third party valuation of the mine. In the interim Zentric has been granted an exclusive license to acquire the entire production of iron ore until such time as Zentric elects to exercise its purchase option. (romel/roffie)