Saint Jean Carbon to acquire Minmet Carbons 2014-01-15 10:09 ET - News Release Mr. Paul Ogilvie reports SAINT JEAN CARBON STARTS 2014 WITH $1.4 MILLION REVENUE GENERATING ACQUISITION Saint Jean Carbon Inc. has entered into a non-binding agreement with an arm's-length party to acquire Minmet Carbons Inc., a private company, a supplier of raw materials to the steel, foundry and mining industries since 1993. Saint Jean views this as an initial step to becoming a long-term supplier of industrial minerals. The company believes that having real revenues and profit will make Saint Jean an attractive junior mining company for investors as it moves forward with graphite production on its global properties. The company intends to sign a definitive agreement with respect to the Minmet acquisition shortly. The chief executive officer of Saint Jean Carbon, Paul Ogilvie, stated: "We are extremely pleased to have the opportunity to bring the Minmet operations and its president, Mr. Chris Wood, together with Saint Jean Carbon. Chris brings a wealth of carbon industry and product knowledge to the table as well as an extremely valuable network of industry supply and customer contacts. Our business goal is to acquire more business in 2014 and with Minmet's historical year-over-year revenues of about $1.4-million and a sales forecast for of about $2-million for 2014, we would have an excellent head start on that objective. As noted, Mr. Wood's 20 plus years of experience in the industrial mineral sales is very important to us as we continue to acquire other business, and broaden our mineral offerings." Mr. Wood also expressed his enthusiasm for the merger of the two companies: "This agreement represents an outstanding opportunity for both companies to leverage their respective strengths and build out new sources of revenue and growth. From my perspective the appeal has been the chance to combine the obvious synergies in terms of skills, access to capital and infrastructure. I think the benefits of this combined horsepower will become an important factor in further distinguishing Saint Jean in the graphite and minerals markets." The acquisition of Minmet will provide Saint Jean Carbon with significant access to multiple new global sources of and markets for both natural and synthetic graphite, as well as a wide range of other industrial materials. It also provides the company with opportunities to generate near-term cash flow and increased exposure to the carbon market supply chain. The company plans on acquiring a few other carbon businesses this year, with the goal of generating new and profitable raw material sales both directly and through a blend of material processing. Mr. Ogilvie further stated: "We are very hopeful, with a broadened offering of industrial minerals, as an example; synthetic graphite or lithium, we will be offering our client's more than just graphite as our existing properties come into production. Being able to expand these offerings will allow us to continue developing an increasingly strong relationship with our customers and identify a growing list of opportunities." Terms The Minmet acquisition terms contemplate an issuance of 500,000 (issued at five cents per share) shares upon signing of the term sheet, an issuance of two million (to be issued at market) shares on closing (expected to be 60 days) and an additional one million to be issued at market) shares on the anniversary of the closing provided certain conditions are met. The Minmet acquisition is subject to the approval of the TSX Venture Exchange. All securities issued shall be subject to a four-month-and-one-day hold period pursuant to applicable securities laws. We seek Safe Harbor. © 2014 Canjex Publishing Ltd. All rights reserved. |