RESOURCE ASSET MANAGEMENT, CORP. (OTCBB: RAMG)

Editors Note: 

With a shortage of domestic timber combined with a 10-to-1 labor advantage in Mexico, the company that Stockupticks brings you today uncovers an opportunity with a strategic advantage in a huge industry. Resource Asset Management (RAMG) is a natural resource business that operates in an asset class dealing with a renewable resource in forestry and sand. This is different from oil and gold in that new finds of metals and petroleum can drive down the price, but everyone knows where the forests are. 

As a result of strategic alliances with AmeraMex International, Baja Timber and other companies and operations in Mexico, RAMG is filling a critical need for capitalizing timber and lumber operations on the Baja peninsula in Mexico near the U.S. border in California. RAMG as a supplier of equipment and facilities under revenue sharing leases, has already made a significant contribution toward expanding timber harvesting and the production of lumber by AmeraMex.

After acquiring rights to purchase an existing full scale sawmill at a bargain price for stock through its subsidiary Southwick Management, RAMG's joint venture AMFS Limited has in escrow the right to acquire control of AmeraMex subject to audits, anticipated to close by June. AmeraMex acquired timber rights through its Mexican subsidiary from Baja Timber, the first to negotiate timber deeds, permits and work agreements in Baja.  The company also has the benefit of utilizing established truck, rail and shipping transportation corridors. RAMG has provided and will provide all future capital required for AmeraMex to implement harvesting timber and cutting lumber in Baja. RAMG will substantially participate in those revenues on a per unit of production basis under RAMG's exclusive equipment and facility leasing arrangements.

Existing agreements with a potential approaching $50,000,000 over the next ten years have been obtained by AmeraMex in Baja, Mexico and new contracts RAMG is presently securing for importing and exporting on behalf of AmeraMex represents a significant market penetration and a key consideration in an industry with combined institutional and individual investments totaling more than $11 billion per year. 

The strong housing market that U.S. consumers enjoyed in spite of last year's recession has made timber a valuable, demand-side commodity once again. The big names in timber like International Paper Weyerhaeuser, Georgia-Pacific and Boise Cascade have focused their foreign operations in Canada and that same approach in Mexico is the key to success for RAMG. 

RAMG has an exciting story to tell: First In Baja, Tangible Assets, Experienced Management, Signed Contracts and the Opportunity For Growth. We think you'll find this environmentally-conscious company worth your consideration ...

Resource Asset Management Corp. (RAMG) offers experience in the development and management of the rich, untouched natural resources of Baja, Mexico. The long peninsula of Baja is divided by its Juarrez mountain range. On one side is the Pacific Ocean, on the other side is the western Gulf of California, also known as the Sea of Cortez, and there is where the forests grow abundantly. RAMG's business is located about 45 miles northeast of Ensenada, Mexico, at Ojos Negros.

RAMG is an enterprise dedicated to capitalizing on emerging opportunities in natural resources markets both domestic and foreign. As a natural resource company supplying equipment and facilities for the production of building materials, the company is the primary driving force for AmeraMex to establish itself as the major timber supplier from the allocated forests of Baja. The excellent grade of timber found in this region is in constant demand worldwide. 
Capitalizing on an initial concession for 10 million board feet, with additional permits readily available as production capacity increases, AmeraMex shipped its first railcar of timber on Nov. 18, 2001 from Baja to Klamath Falls, Oregon. Acquiring rights to participate in the development of natural resources in the emerging economic climate of Mexico is a venue that RAMG and its strategic alliance partners know well. First into the area, AmeraMex personnel have a deep-background in forestry and is a hands-on, on-site leader overseeing daily operations. 

Through the company's strategic alliances, RAMG is securing leases, deeds and contracts for prime timber and high-grade sand deposits throughout the Juarrez range. RAMG currently has control of hard assets appraised at over $1.5 million and is emerging as one of the most significant employers in Baja. In the last month alone RAMG has invested over $300,000 in equipment, trucks, and facilities improvements at the Ojos Negros saw mill site.

RAMG changed its name from VPN Communications Corporation, (OTCBB: VPNN) on April 16th, 2002 and moved into new corporate offices (the address is listed below) this month to meet operational and administrative needs. The company has under construction and will soon unveil a new corporate web site dedicated to Investor Relations, SEC compliance, and the new company business model. With much of its corporate infrastructure in place, this new direction for the company is a fresh, focused start on building the business of developing natural resources. 

RAMG's alliance partner AmeraMex has underway a well-established program of land conservancy (replanting trees at a 5-to-1 ratio, fighting diseases in trees, forest floor preservation and removing burnt timber from forest fires). This has established local good will and by keeping the terms of its agreements and delivering to market, AmeraMex and consequently RAMG have developed a valuable and exceptional relationship with the government and people of Baja, Mexico. 

RAMG deals in Mexico through Amerimex, S.A., A Mexican corporation owned by AmeraMex International.

RAMG is investing in the operations in Mexico and participating significantly in the resulting revenues through its loans and equipment leases, protected by UCC-9 filings establishing its legal security interests recognized by the Mexican government.

AmeraMex Has Received Orders For All Of Its Total Production Of Timber To Date and is back ordered for the remaining production derived from its existing concessions. 

Information from AmeraMex discloses that it has taken unique and timely action ahead of the major lumber companies to:

 

1) Obtain permits to harvest timber in Baja, Mexico.  2) Establishing long-lasting relationship with local Mexicans, the Ejidos' in securing deeds, permits and rights.  3) Has built and developed over 40 miles of roads.  4) Over 15,000 acres of fire-damaged timber are being harvested by RAMG.  5) Established a proven relationship with the local Mexican government.  6) Responsible for the first rail shipment of lumber ever exported from Baja, Mexico under NAFTA. 7) The first to establish procedures and ship lumber via Burlington Northern Railroad, from Mexico to the United States.  8) Obtained exclusive shipping rights to ship raw materials from El Sauzal Port, (50 miles south of San Diego, California).

 

REVENUES & PRODUCTS

* From the first small sawmill, cutting 10,000 board feet a day in the form of cants to be sold for railroad ties.

* From the second sawmill, cutting up to 20,000 board feet per day for pallet lumber.

* Utilizing burned timber for pallet construction.

* RAMG also is participating in revenues from leases for equipment and facilities to capitalize on permits to extract and ship   quality sand and gravel (with a first permit for 10,000,000 tons already issued).

RAMG buys and sells cants produced by AmeraMex:

* Cants or 'heart wood' is the core of the tree that has very fine, straight grain without knots. 

* The typical product mix is 70 percent cants and 30 percent remaining lumber. 

* The cants are sold to brokers in the U.S., who in turn sell them to mills, and the remaining lumber is sold in Baja.

RAMG buys and sells pallets produced by AmeraMex:

* Current orders underway are for 150,000 pallets per month in Mexico.

* New orders are being taken for pallet sales in the U.S. as production increases.

RAMG returns partial revenues back into property improvement and reforestation efforts for future timber growth.
 
 

AmeraMex acquired land for its new mill site in Ojos Negros, located approximately 35 miles east of Ensenada, Baja Mexico. The site will cover 100 acres, employ up to 100 people, and will provide two or more separate sawmill operations for efficiency, as well as a pallet production plant. This site with concrete pads, shelters, and drying sheds already being put in is planned to produce up to 1,200,000 board feet of lumber per month in the very near future. Initially the plant is being powered by diesel generators sets. RAMG has planned to invest in a cogeneration electrical plant burning waste material that will supply the sawmills electrical power while providing additional electrical power to the community surrounding the new site. 

With Lower production costs than available in the U.S., RAMG is able to buy and sell high quality timber produced by AmeraMex at a very competitive price and has a very respectable margin. Typically, supply agreements to customers run a very conservative risk at terms of 3, 5, and 10 years. A 2-to-5 year harvesting cycle also allows for market timing to ensure the best price and the RAG business model calls for the AmeraMex to process 6,000,000 board feet per month with the new site in full operation. 

The North American Free Trade Agreement (NAFTA), together with RAMG's strategic alliance partner's three years of development and project investment at a cost of over 2 million dollars, have launched the opportunity for RAMG to step in at this time as a major participant in the tremendous growth now occurring between the United States and Mexico. After the completion of the escrow to acquire AmeraMex,  RAMG will hold its primary natural resource assets in leases and contracts with an estimate of over 200 million dollars of prime timber and high-grade sand deposits. Tremendous growth is now underway between the United States and Mexico and the company's excellent proximity to shipping along with its ease of trade through NAFTA, gives it an advantage in long-term growth potential. 

Is Mexico Safe? 
Mexico has surpassed Canada's trade volume as America's largest trading partner.  Today over 400 major corporations have moved many of their operations "south of the border".  Ford, General Motors, IBM, and many foreign corporations have manufacturing plants in Mexico.  Since the enactment of the NAFTA, free trade has flourished.  The reason is simple; countries now have trade agreements that spell out and protect the parties' trade and assets, while giving them the legal recourse they need. Mexico is closer, more stable, and cost effective; advantages that make it one of America's fastest growing trading partners.  Mexico has very recently adopted certain American style business practices (title insurance, filing security interests), that provide for a lower risk and far more secure business investment in facilities and equipment there than in the past. The recent real estate development and financing and building boom in Ensenada by major American businesses is evidence of this.
 

Year/State of Incorporation: 9/29/86, Nevada 
Shares Authorized: 40,000,000 common, 10 million preferred. 
Shares issued Common: 9,555,944 
Shares issued Preferred: 1,600,000 
Par Value:  .001 Per Share 
Filings: Current 
Market Makers: 14 Market Makers: NATC,  NITE, GVRC, HILL, PGON, LTCO, WIEN, FRAN, EQUI, OGRU, FLTT, SCHB, PHGS, MLNJ 
Transfer Agent:  Atlas Stock Transfer, Salt Lake City, Utah 
Accountants: Kabani & Company, Fountain Valley, CA 
Last Audited Financial Report: 10K- FYE 9/30/2001 
Last Year 10K  filed:  9/30/01 
 

*** HOW TO CONTACT RAMG FOR MORE INFORMATION***

Safe Harbor Statement: Statements contained in this document, including those pertaining to estimates and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. 

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