Trading Symbol: MCV
TORONTO, March 11 /CNW/ - McVicar Resources Inc. ("McVicar") is pleased
to announce that its Chemical subsidiary, Zhejiang Hongbo Chemical Co. Ltd.
("Hongbo") has reached an agreement to acquire 80% of Luyuan Chemical Co. Ltd.
("Luyuan") in Xiangshui city, Northern Jiangsu Province, China. Hongbo agrees
to pay a cash amount of 4,000,000 RMB (~ CDN $600,000) for the equity
interest, and will provide approximately 5,000,000 RMB (~ CDN $750,000) for
facility upgrade and working capital.
Luyuan is a manufacturer and supplier of specialized chemical products
for the industrial market. One of Luyuan's main products is a key raw material
in the intermediate chemicals that Hongbo manufactures and supplies to DuPont
as announced in September, 2007. The acquisition of Luyuan will secure the
supply lines required for the DuPont project and will enable Hongbo to ensure
the quantity and quality of its raw materials. This acquisition also allows
Hongbo to explore for further projects from the company. After the
acquisition, Hongbo will take immediate control of the operation and product
improvement for reaching the quality and quantity requirements. In addition to
the product Hongbo requires, Luyuan also provides intermediate chemicals for
the textile industry with annual capacity of up to 100 million RMB
(~ CDN $15 million). Hongbo will be able to help in realizing this potential
by providing the necessary capital and technical expertise.
"I am pleased with this new acquisition. This is a way to show our
commitment to servicing our key customers, to ensure the quality and quantity
of supplies to DuPont," Dr. Gang Chai, McVicar's CEO, commented. "Furthermore,
through the injection of capital and technology, we will improve the current
operations to our standard and capitalize their market potential for other
products to further our China growth strategy."
Headquartered in Toronto, Canada, McVicar Resources Inc. is focused on
the chemical business through acquisitions in companies operating in China.
McVicar's operating companies include: Zhejiang Hongbo Chemical Co. Ltd.,
Hongzhou Changlong Chemical Co. Ltd., and Sino Lion Nanjing Ltd. McVicar also
holds a 47% interest in Jite Technologies Inc. (TSX Venture Exchange: "JTI"),
a manufacturer of electronic and electrical connection devices.
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Expectations are based on
reasonable assumptions and the company can give no assurance that our
expectations will materialize.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Ms. Exavier Peterson at: 55 University Avenue,
Suite 605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,