Chilco River Holdings Acquires Major Stake in Mexican Iron Ore Producer and Exporter Leuffer Desarrollos S.A. de C.V.

Rhea-AI Summary

Chilco River Holdings acquires Leuffer Desarrollos, a Mexico-based iron ore exporter

Positive

• Leuffer has exported over 1.3 million metric tons of iron ore to China, Hong Kong, and the USA between 2019 and 2022
• Mexico aims to become a top 5 iron ore producer in the next 2 to 3 years
• Leuffer plans to boost production by 50% each year starting in 2024

Negative

• None.

Leuffer Mining Exported 1,347,438.14 Metric Tons of Iron Ore in the last 3 years

CHATSWORTH, CA / ACCESSWIRE / October 6, 2023 / Chilco River Holdings, Inc. ("Chilco River") (OTC PINK:CRVH), a multi-faceted holding company focused on developing high growth businesses within diverse industries, announced today the acquisition of Leuffer Desarrollos S.A. de C.V, a Mexico-based exporter of iron ore to the United States, China and Hong Kong. Leuffer has been growing its iron ore shipment volumes for 7 years and acquiring more than 10 mining concessions (leases) to be operating in crucial developing Mexican mining plans near to biggest port facilities. To date, Leuffer has shipped over 94% of its aggregate shipments to China. In addition, about 4% of its total shipments arrived in Hong Kong. The remainder of the shipments have been sold to various producers in the United States. Leuffer Desarrollos S.A. de C.V, specializes in producing and exporting high-quality iron ore lumps with a 62% quality, crushed ¾ to fines, in dry basis (basic commodity).

Mexico is the 12th largest producer or iron ore in the world, with potential and growing every year, to become top 5 in the coming 2 to 3 years. Currently, Australia is the largest producer of iron ore followed by Brazil and China. The major producers in the global iron ore mining market are Vale SA, Rio Tinto, BHP, Fortescue Metals Group Ltd (FMG), and Anglo American Plc. Although Mexico produces about 3% of the world's iron ore, its strategic location, weather, economic conditions and skilled workers advantages to increase its total production to service world markets such as China, USA and others. Leuffer has exported over 1.3 million metric tons of iron Ore to China, Hong Kong, and the USA between 2019 and 2022. The company currently possesses federal registration permits, and the required special exportation permit registered with the national tax authority in full force and effect for mining operations, registers, permits and licenses in force since their mining operation is cautiously designed to protect environment and communities. Leuffer remains only one of 3 companies in Mexico to export iron ore out of the country.

The company owns and operates 11 mining leases, with four of them currently in production in the state of Sonora, with the other leases located in Michoacan and Jalisco in Mexico. All of the mines are conveniently located near major maritime ports of cargo, with railroad and highways facilities. Two of the largest iron ore mining operations in Mexico are in Michoacan, in close proximity to the Leuffer´s company mining leases in Michoacan state. Those like, (i)Las Encinas mines is in Michoacan. It is owned by Ternium and produced an estimated 1.93 million metric tons of iron ore in 2022, the mine will operate until 2038. The Las Truchas mine, owned by ArcelorMittal, is a surface mining operation located in Michoacan, and produced an estimated 1.61 million metric tons of iron ore in 2022. That mine will operate until 2040.

The Mexican Geological Service (SGM) and other international geological engineering specialists are currently conducting surveys to determine the SK-1300 assay for the Mineral Resources as proven. The surveys are being conducted on four mines in Sonora, which have probable mineral resources (iron ore reserves) of around 60 million metric tons, guaranteeing more than 30 years production. The survey will also determine the presence of Gold, Silver, Copper, and rare earths (17 elements existent in the Sonora leases), which will project growth exponentially in the coming 2 years. Meanwhile, Leuffer´s mining operation will continue with the exploitation and exploration of iron ore and export without rest, which will allow it to position itself in the markets of large consumers. Their expansion mining plan was meticulously designed by technic geologists and mining operation professionals from around the world.

In 2023, the operating budget for Leuffer Desarrollos S.A. de C.V. aimed to generate roughly 1 million metric tons of Iron Ore. The company has invested significantly in infrastructure and consolidation of their mining concessions, and presently operates four leases in Sonora state. By using advanced machinery, equipment, and expertise, the company is witnessing a monthly rise in production.

Starting in 2024, Leuffer Desarrollos S.A. de C.V. plans to boost production by 50% each year and to add two more open operational pits, and increase their attendance near to the mining operation, and acquire more leases to production annually. The firm primarily exports through the Guaymas (Sonora) maritime port, although it also utilizes alternate port facilities in Lazaro Cárdenas (Michoacan) and Manzanillo (Colima) maritime ports.

Will Lovett, Chairman and Chief Executive Officer of Chilco River Holdings Inc. commented, "The acquisition of Leuffer demonstrates our management team's commitment to acquiring assets that are producing revenue currently. Leuffer has demonstrated an ability to secure mining leases, obtain the necessary permits, all while opening global distribution channels for its iron ore."

Mr. Lovett added, "As we increase production, we are confident that our current sales channels including China can easily purchase triple our current production without any additional channels being added to our downstream".

About Chilco River Holdings

Chilco River is a multifaceted holding company focused on businesses within diverse industries.

Website: http://www.chilcoriver.com

About Leuffer Desarrollos S.A. de C.V https://leuffer.com/

Leuffer Desarrollos S.A. de C.V has nearly a decade of experience exporting millions of metric tons of Iron ore, with the necessary concessions and infrastructure to meet the iron ore demands of industries operating along the Mexico and USA borderline, we are able to provide you an extraordinary opportunity to grow your capital by acquiring low-risk and highly demanded stocks of raw materials such as iron ore for iron-producing and steelmaking companies.

Forward Looking Statements:

This release contains forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended and section 21e of the Securities and Exchange Act of 1934, as amended. Those statements include the intent, belief or current expectations of the company and its management team.

Forward-looking statements are projections of events, revenues, income, future economics, research, development, reformulation, product performance or management's plans and objectives for future operations. Some or all of the events or results anticipated by these forward-looking statements may not occur. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Accomplishing the strategy described herein is significantly dependent upon numerous factors, many that are not in management's control.

Contact:

Will Lovett
Chief Executive Officer
Chilco River Holdings, Inc.
crvholdingsinc@gmail.com

SOURCE: Chilco River Holdings, Inc.

View source version on accesswire.com:
https://www.accesswire.com/790648/chilco-river-holdings-acquires-major-stake-in-mexican-iron-ore-producer-and-exporter-leuffer-desarrollos-sa-de-cv

FAQ

How much iron ore has Leuffer exported?

Leuffer has exported over 1.3 million metric tons of iron ore to China, Hong Kong, and the USA between 2019 and 2022.

What are Mexico's goals in iron ore production?

Mexico aims to become a top 5 iron ore producer in the next 2 to 3 years.

What are Leuffer's plans for production growth?

Leuffer plans to boost production by 50% each year starting in 2024.