Union Asia Enterprise Holdings Limited (the “Company”) over the course of 2008 and leading up to the present has diligently worked to refocus its principal business activity. The Company, through its’ wholly owned subsidiary, Black Sand Enterprises Limited (“Black Sand”) and its subsidiaries are now integrally engaged in the exploration, exploitation, and trading of the mineral resource, magnetite, as well as the trading of other commodities. Magnetite is a type of iron ore and the basic raw material used for the production of steel.
Black Sand, established in early 2008, on 18 December 2008, acquired a direct and indirect 64% major stake in Mt. Mogan Development and Resources Corporation (“Mogan”). Mogan, a Philippine national company, is the holder of 24,042 hectares of offshore magnetite mining claims along the municipalities of Tacloban, Tanauan, Tolosa, Dulag, Mayorga, MacArthur and Abuyog in Leyte Province and Basey and Marabut in Samar Province of The Philippines.
The physical location of the Company’s mining assets in The Philippines has its competitive niche over other iron ore producers given its’ proximity to China, the country with the greatest demand for iron ore, and hence, the largest steel producer in the world. The strategic location will also represent significant cost savings to most of the major steel mills in Asia in the form of lower freight cost and shorter delivery time, and lower carrying cost related to inventory built up in the very capital intensive steel industry.