LOS ANGELES, and JAKARTA, Indonesia, April 21, 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 coal mine assets from PT Dian Anugrah
Pratama (DAP), an Indonesian corporation with headquarters in
Jakarta.
According to the agreement, PHI Energy Corporation will acquire
an estimated mineable coal reserve of 10,000,000 metric tons
located in an area of approximately 423 hectares, at Kecamatan
Kapur IX, Kabupaten Lima Puluh Kota, Propinsi Sumatera Barat,
Indonesia, from DAP in exchange
for 20,000,000 shares of common stock of PHI Energy Corporation
valued at $1.00 per share.
The closing of this transaction is scheduled to take place on
May 7, 2011. As part of the
agreement, PHI Energy Corporation is irrevocably committed to
filing a registration statement with the United States Securities
and Exchange Commission to become a fully reporting publicly traded
company and will do so within 90 days following the closing.
PHI Energy Corporation also agrees that, during the first 60
days immediately following the initial effective trading of its
common stock, if the average closing price of the Company's stock
falls below $1.00 per share, the
Company agrees to issue additional shares of its authorized but
unissued common stock to DAP such that the total value of all the
shares of common stock received by DAP will be equal to a minimum
of $20,000,000.
Sample analysis data of the coal assets acquired show ash
content of 10.66%, total sulfur 0.97%, total moisture 4.78%,
volatile matter 46.36%, fixed carbon 41.43% and caloric value of
7,338 Kcal/kg.
Herman Koswara, Director of DAP, said, "We are pleased to
participate in PHI Energy Corp's growth strategy through this
relationship and look forward to creating substantial value for all
parties involved."
Allen Wu, Chairman of PHI Energy
Corp, said, "The acquisition of the DAP coal assets is the first
step of our plan to engage sizable sources of coal supply to meet
the demand of potential long-term off-take contracts. We are
confident that this transaction will bring significant economic
benefits to our shareholders."
About PHI Energy Corporation
Founded originally in 2005 as Providential Oil & Gas, Inc.,
PHI Energy Corporation has been engaged in oil and gas joint
ventures with various U.S. companies in Texas and California. The Company is a majority owned
subsidiary of AXN Group, LLC, a global investor in natural
resources sector, encompassing oil & gas, forestry/timber, and
mining. Website: www.phienergycorp.com
About PT. Dian Anugrah
Pratama
PT. Dian Anugrah Pratama is an
Indonesian company focused on coal mining and coal trading.
Currently the Company's mines are in West
Sumatra, Indonesia with estimated reserve about 40 million
metric tons. For further inquiry, please call +62215220953 or
+6283186230188, or email bizibadi@yahoo.com.
About PHI Group Inc.
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 is engaged in mining activities through its
majority-owned subsidiary 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.
SOURCE PHI Group, Inc.