ReoStar Energy Corporation Acquires Interest in Emerging Global Iron Ore Producer Leuffer Mining Group

Rhea-AI Summary

ReoStar Energy Corporation (OTC: REOS) has announced its acquisition of a stake in Leuffer Mining Group, a Mexican mining company specializing in iron ore production. Leuffer has a strong export history, having shipped over 1.5 million metric tons of iron ore to major markets including China and the USA from its operational leases in Sonora, Michoacan, and Jalisco. The new partnership aims to enhance ReoStar's position in the global market, targeting a production increase of 50% annually starting in 2024. Additionally, Goldman Sachs has raised its iron ore price forecast by 20% due to anticipated supply shortages, indicating a positive market outlook for iron ore prices.

Positive

• Acquisition of Leuffer Mining Group enhances ReoStar's production capabilities.
• Leuffer plans to increase iron ore production by 50% annually starting in 2024.
• Goldman Sachs raised iron ore price forecast by 20%, now expected to reach $150/mt.

Negative

• None.

Company set to begin fulfilling iron ore orders for customers in Asia Pacific and the Middle East

PASADENA, Calif., March 30, 2023 /PRNewswire/ --  ReoStar Energy Corporation ("ReoStar") (OTC: REOS), an emerging growth Mining and Energy company with interests in the production of iron ore, gold, silver, copper and rare earth metals announces it has acquired an interest in Leuffer Mining Group ("Leuffer"). 

Leuffer Desarrollos S.A. de C.V., a Mexican mining company with over 7 years of experience, specializes in producing and exporting high-quality Iron Ore lumps with a 62% dry basis. The company has exported over 1.5 million metric tons of Iron Ore to China, Hong Kong, and the USA between 2019 and 2022. Leuffer Desarrollos S.A. de C.V., currently possess Federal registration permits, and a special exportation permit registered with the National tax authority in full force and effect for mining operations. 

The company has exported Iron Ore to China, as reported in public information available on https://es.panjiva.com/Leuffer-Desarrollos-S-A-De-C-V/39251506. 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 the mines are conveniently located near principal ports for cargo exportation.

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 two mines in Sonora, which have probable mineral resources (iron ore reserves) of around 50 million metric tons. The survey will also determine the presence of Gold, Silver, Copper, and rare earths (17 elements existent in the Sonora leases).

In 2023, Leuffer Desarrollos S.A. de C.V. aims to generate roughly 1 million metric tons of Iron Ore. The company has invested significantly in infrastructure and presently operates four leases. 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 add two more leases to production annually. This would result in an overall production increase of 50% per year. The firm primarily exports through the Guaymas (Sonora) port, although it also utilizes alternate port facilities in Lazaro Cárdenas (Michoacan) and Manzanillo (Colima) ports.

US-based investment bank company Goldman Sachs has revised up its iron ore forecast by 20% in the second quarter of 2023 due to the predicted iron ore supply shortage. Iron ore prices are expected to rise to $150/mt in the current quarter. 

Chief Executive Officer of Leuffer, Ricard Leuffer, stated, "our team at Leuffer are excited on our new phase of expansion for the company." 

The CEO of ReoStar, Michael Lajtay, concluded, "The acquisition of Leuffer is a monumental moment for ReoStar which puts the company on the global stage for the production of key commodities which are in high demand globally. We look forward to working with Ricardo and his team to fulfill existing orders, expand production and execute our multi-year strategic plan for growth. 

About ReoStar Energy Corp.:

ReoStar Energy Corp. is an emerging growth Mining & Energy company with interests in the production of Iron Ore, Gold, Silver, Copper and other Rare Earth metals. The company recently acquired Leuffer Mining Group which is a large global mining company with Headquarters and operations in Mexico in addition to locations in the U.S. and Spain.  

About Leuffer Mining Group: 

Leuffer Mining Group has nearly a decade of experience exporting millions of tons of Iron, with the necessary concessions and infrastructure to meet the iron 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

Websites: 
www.reostarenergycorp.com
www.leuffer.com

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:
Michael Lajtay
Chief Executive Officer
ReoStar Energy Corporation
info@reostarenergycorp.com

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SOURCE ReoStar Energy Corp

FAQ

What is the significance of ReoStar's acquisition of Leuffer Mining Group?

The acquisition strengthens ReoStar's position in the global iron ore market and boosts its production capabilities.

How much iron ore does Leuffer Mining Group currently produce?

Leuffer aims to generate roughly 1 million metric tons of iron ore in 2023, with plans to increase production by 50% each year starting in 2024.

What are the future production plans for Leuffer Mining Group post-acquisition?

Leuffer plans to add two more leases to production annually, substantially increasing its output.

How has Goldman Sachs adjusted its forecast regarding iron ore prices?

Goldman Sachs has revised its forecast up by 20%, projecting iron ore prices to reach $150 per metric ton due to supply shortages.