SOURCE: NYMET Holdings Inc.

September 07, 2010 09:27 ET

NYMET Holdings Inc. (NYMH) Executes Letter of Intent for Acquisition and Expansion of Iron Ore Mine Located in Chile, South America

NEW YORK, NY--(Marketwire - September 7, 2010) - NYMET Holdings Inc. (PINKSHEETS: NYMH), a metals recycling and Mining company, with offices now in New York, Chicago, Canada, India, and Chile, South America, is pleased to announce the execution of a letter of intent for the expansion and acquisition of the iron ore mine located in Chile, South America.

NYMET Resources & Mining Corp., a wholly owned subsidiary of NYMET Holdings Inc. (www.nymetholdings.com), has entered into a letter of Intent to joint venture the expansion and acquisition of the mining and mineral rights associated with the Iron ore mine located in Chile, South America. The letter of Intent contemplates a joint venture between NYMET and the current mine owner. The objective of the joint venture is to expand production of the existing mine and to further expand operations with the utilization of the current proven deposits of approximately 40 million metric tons valued at more than 4 billion dollars. The agreement also provides for the acquisition and development of an existing port complex which will provide significant savings with respect to transportation and logistic costs.

The Mine is one of the largest deposits in that region and has export permits currently up to 100,000 metric tons per month. NYMET will seek to expand the export permit so that we can export 300,000 metric tons per month.

NYMET has retained the expertise of both SGS inspections as well as Alex Stewart Assayers who have determined the mine maintains some of the highest-grade iron ore that has the specification and quality which is highly sought after by our clients.

The first contract is valued at over $150 million in revenue through 2011, provides NYMET the potential for a substantial increase in revenues for this year. Once the first 150,000 MT is exported, the mine can apply to increase their current export permit capacity to 300,000 MT. That coupled with additional investment into the facility we anticipate revenues to grow to over $250 million by year end 2011.

Edward R. Gulmi, Executive Senior Vice President, stated, "The letter of intent and the execution of the final definitive agreement will provide both the current owner and NYMET with the financial capabilities to not only expand and increase our asset base, but more importantly secure the sustainability of supply and control over the physical commodity which shall provide to our shareholders long term revenue stream."

NYMET's mission:
To evolve into the best raw material supplier for the steel production sector using logistics, software, and selective, strategically acquired operating assets. www.nymetholdings.com

DISCLAIMER: CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS

The results described herein cannot be guaranteed. The development of any and all of the subject mining claims stated herein is contingent upon multiple high risk factors that must be successfully dealt with in order to achieve the intended results. This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. These expectations and assumptions are subject to risks and uncertainty, which could affect NYMET Holdings future. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of NYMET Holdings to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks. NYMET Holdings undertakes no duty to update any forward-looking statement(s) and/or to conform the statement(s) to actual results or changes in NYMET Holdings expectations.

Contact Information

  • Contact:
    NYMET Holdings Inc.
    Investor Relations
    (631) 923-1400