Raptor Resources Holdings Inc. Signs Memorandum of Understanding With Major Oilfield Service Provider for API Grade Barite Utilized in the Oil & Gas Well Drilling Sector
FREEHOLD, N.J., May 8, 2012 /PRNewswire/ — Raptor Resources Holdings Inc. (symbol: RRHI) (OTCQB-News), is pleased to announce today the signing of a Memorandum of Understanding (MOU) with one of the world’s oilfield service giants. The MOU lays the groundwork for a long-term purchase agreement between both companies. Once in full production, the company estimates it will ship 220,000 tons/year against the 2M tons listed in the MOU. The MOU provides exclusive rights to the customer for all API (American Petroleum Institute) barite applications.
The Gulf of Mexico, home to the largest concentration of active rigs world-wide consumed up to 5M tons of bulk barite during CY2010 with the major contributors being China (3.6M tons) and India (1M tons). Barite is used as a weighting agent during drilling to reduce the formation pressures preventing well blowouts. API Grade bulk barite prices referenced in Industrial Minerals’ March 2012 commodity price list averaged $144/ton based on FOB China and FOB India conditions representing a 48% price increase since August 2011.
The company is also in early stage discussions with non-API customers to provide a combined total of 110,000 tons/year of the company’s premium barite for applications in the Paint, Automotive, Medical and Plastic/Rubber sectors. Pure Barium Sulfate (BaSO4) has a specific gravity of 4.5. Dodge Mine samples tested by the University of Zimbabwe in late 2011 documented the company’s white barite at 97.25% and the pink barite at 95.5% pure Barium Sulfate (BaSO4). With bright white barite during the 1st Qtr. commanding a price premium in the order of $225/ton, the company’s business model, at full capacity, represents 330,000 tons/year taking optimum advantage of the high percentage of superior grade barite deposits at Dodge Mine to support non-API applications.
Dodge Mine is a world class, hydrothermal mountain range covering 305 acres. The barite deposits are 100% recoverable compared to certain barite mines in Nevada that are rated 45% recoverable. The company was proactive to recently acquire an additional 1235 acres along the mountain range bringing the total property size to 1540 acres. The company recently started a gravity mapping program to identify all mineral/metal types on the Dodge Mine property with first priority being barite anticipating a mineral/metal composite of probable/proven reserves. The gravity mapping program is targeting completion this June.
Al Pietrangelo, President & CEO of Raptor Resources Holdings Inc., stated, “The short term delay in alluvial surface gold mining was a bold move to aggressively secure Dodge Mine and surrounding property that should benefit the shareholders for years to come. As we move into production to generate revenue from the mineral/metal assets of Dodge Mine along with our intent to start alluvial gold production the second half of this year, we anticipate the combined revenue from both business units will create sustaining shareholder value on both fronts over the next 18 months.”
The company is in early stage discussions with industry experts to vertically integrate certain stand alone minerals and blended minerals for value added revenue opportunities as well as continuing to target new mineral assets to compliment the company’s portfolio of mineral/metal assets.
Mr. Pietrangelo further stated, “This is a very exciting time for Raptor Resources Holdings Inc. Since the change of control of the parent company was effectuated last May, 2011, management has tirelessly sought out many opportunities for and on behalf of our shareholders.” He added, “This is just the beginning of the many events that are expected to unfold, which we firmly believe will lead us to a strong profitable future.”
Raptor Resources Holdings Inc. (parent/holding Company)
Raptor Resources Holdings Inc. is the parent/holding Company with three independently operating subsidiaries: TAG Minerals Inc., Mabwe Minerals Inc. and Lantis Laser, Inc.
About TAG Minerals Inc.
TAG Minerals Inc. is a U.S. based (incorporated in Wyoming) mineral resource acquisition, exploration and development company, with operations conducted through its operating affiliate, TAG Minerals Zimbabwe (Private) Limited. The company’s business is managed by its directors and officers who have mineral extraction and commercial experience. TAG’s strategy is to identify, acquire and exploit mineral properties that have potential. TAG Minerals is augmented by independent financial, geological, and mining professionals who advise the company on its mining and exploration projects throughout Zimbabwe, Africa.
To find out more about the mining equipment utilized by TAG; visit (www.extrac-tec.com)
About Mabwe Minerals Inc.
Mabwe Minerals Inc. is a U.S. based natural resources and hard asset OTCQB publicly traded, fully reporting company engaged in the mining and commercial sales of industrial minerals and metals.
About Lantis Laser, Inc.
Lantis Laser, Inc. is developing under license, synergistic, high resolution, light-based imaging modalities which can detect decay and microstructural defects at an early stage, and unlike x-ray, do not emit potentially harmful ionizing radiation. Its products are in development and cannot be sold until FDA clearance for marketing is obtained.
For more news on OCT in Dentistry; visit: (www.octnews.org)
Statements regarding financial matters in this press release other than historical facts are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the company’s future expectations, including future revenues and earnings, technology efficacy and all other forward-looking statements be subject to the safe harbors created thereby. The company is a development stage company who continues to be dependent upon outside capital to sustain its existence. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the company’s actual results may differ materially from expected results.
SOURCE Raptor Resources Holdings Inc.