DANVILLE, Calif., April 28, 2010 (GLOBE NEWSWIRE) -- S3Investment Company, Inc. (Pink Sheets:SIVC) today announced that the newest client of its wholly owned Redwood Capital subsidiary is Monseka Mining Corporation, which was founded to become a world class multi-mineral provider focused on the production of tungsten, tin, molybdenum and bismuth.
Redwood Capital, which assists private companies in accessing the North American capital markets by achieving reverse merger and financing transactions, is under contract with Monseka Mining to assist the company with investment banking and advisory services on a progressive basis for an anticipated funding and public listing processes.
Monseka Mining, which has a successful track record analyzing mines for major mining companies in Mongolia, Australia, Indonesia, Papua New Guinea, and Vietnam, plans to expand while maintaining a unique earnings growth model by continually acquiring producing properties, which they can improve efficiency, and acquiring late-stage proven reserves that can be quickly brought to production. The company's business model focuses on low cost acquisitions of current production and late stage resources. Monseka Mining has 4 current projects: one in production, one in development and two in feasibility study stage.
Mongolia is seen as a new frontier, with significant investment there by some of the largest mining companies in the world. Recent changes in Mongolian legislation make it the most advantageous country in Asia to develop mines. Mongolia is advantageously located next to China, which declared tungsten a strategic metal and controls 86% of the world's reserves. Low taxes; uncomplicated environmental rules; a conducive investment climate; competitive business costs; and a young, well-educated and "westernized" population are additional factors that make Mongolia an exciting new region for mining and metals development.
Monseka Mining was signed as a client by Redwood Capital during S3 Investment Company Chairman and CEO Jim Bickel's most recent trip to China.
"Redwood Capital is already hard at work on behalf of Monseka Mining, and we expect that the investment community will be compelled by the potential of this Redwood client company," said Mr. Bickel. "We further believe that Mongolia presents significant business opportunities, and we will seek to explore all possible avenues for Redwood Capital to conduct additional business there."
Redwood Capital is invested in the long-term success of its client companies, since it is partially compensated for its services with common stock of the client company. The value of the stock payments received from these transactions is reflected in the company's consolidated financial reports posted at www.otcmarkets.com.
Over the past year, Redwood Capital has participated in successful reverse merger and equity financing transactions for Chinese companies, including Boyuan Construction Group, now traded on the TSX Venture Exchange under the symbol BOY and China listed on the Over-the-Counter Bulletin Board under the symbol CHNC.
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About S3 Investment Company, Inc.
S3 Investment Company, Inc. (http://www.s3investments.com) and its Redwood Group International subsidiary are focused on facilitating the success of two subsidiaries operating in the China market. Redwood Capital, Inc. assists private Chinese companies in accessing the North American capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions. For more information, please visit http://www.redwoodcapinc.com. Redwood Medical, Inc. assists companies seeking to import and distribute Western medical technologies and products into the China market.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.