This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cavico Signs Joint Venture Contracts To Excavate Construction Materials With Investment And Exploitation Of Natural Resources Joint Stock Company

Cavico Corp. (NASDAQ: CAVO), a leading infrastructure development company based in Vietnam, today announced that its majority owned subsidiary, Cavico Infrastructure Development has signed a joint venture agreement with the Investment and Exploitation of Natural Resources Joint Stock Company (IERC), to invest, exploit and market construction stones from Hang Co Mine.

According to the agreement, Cavico Infrastructure is responsible for exploiting, processing and marketing the stones and IERC will be responsible for administration of the joint venture and obtaining licensing approvals. The parties have agreed to split the revenues. IERC will receive $0.40 for every cubic meter of stone exploited, processed and sold by Cavico Infrastructure. Cavico Infrastructure will retain the remaining revenue, which it anticipates to be approximately $9.5 million.

Cavico Infrastructure also has signed an agreement with IERC to exploit and market construction sand in the Doc Du area, in Vinh Tan village, Binh Thuan province. Cavico will extract sand within 7.63 hectares of land that has 152,600 cubic meters of construction sand reserves at a depth up to 2 meters. Cavico expects to extract approximately 50,000 cubic meters of sand per year for the next three years. The value of this contract is approximately $1.1 million.

In addition, Cavico Infrastructure has signed a contract to sell 360,000 cubic meters of block stones from Hang Co Mine to the Dong Bac Company by the end of 2010. The anticipated value of this contract is $3.0 million. Currently, Cavico Infrastructure is also negotiating a sales contract with ITACO Company to sell construction stones for 2011. Both Dong Bac and ITACO are members of the Vietnam National Coal and Mineral Industries Group, also known as Vinacomin. The current price for block stone and construction stones is about $7.50 and $8.80 per cubic meter respectively.

Hang Co Mine is located at Vinh Tan village, in the province of Binh Thuan, which is in south central Vietnam. The quarry will be the main provider of construction stones to the Vinh Tan thermoelectricity plant. The total land to be quarried is 4.27 hectares which has 640,300 cubic meters of natural stone reserves at a depth up to 15 meters. Cavico expects to excavate approximately 480,000 cubic meters of block stones annually and should complete the excavation by August 2011.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,958.53 -125.27 -0.73%
S&P 500 1,978.37 -9.61 -0.48%
NASDAQ 4,444.4890 -27.6190 -0.62%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs