- Amended agreement increases up-front payments to 22% of $6,000,000
construction costs
VANCOUVER, British Columbia -- (Business Wire)
MicroCoal® Technologies Inc.(CNSX: MTI) (OTC: CFQSF)(Frankfurt:
OFS.F) (the âCompanyâ) is pleased to announce that PT Wijaya Tri
Utama (âPWTUâ) has agreed to advance a total of USD $1.32 million
pursuant to the Master Coal Upgrade Agreement dated 17th
July, 2013 and now amended by agreement of the Parties (see July 29th
2013, News Release #13-20). To date, the Company has received 15%
($900,000) of the contracted price, with the balance of the prepayment
being 7% ($420,000) payable by December 23, 2013. The full contract
price is USD $6,000,000 and the balance of the payment is being secured
by an irrevocable letter of credit arranged by PWTU. In addition to the
contracted price, MicroCoal® will receive an annual royalty fee of
$360,000 (6% of the construction price) for a period of six (6) years
after completion, plus maintenance fees to be negotiated.
The facility, now under construction, is located on-site at the PWTU
coal-fired power plant on the island of Kalimantan, Indonesia and is
designed to upgrade the calorific value of approximately 190,000 tonnes
per year of low-rank coal (approximately 8,000Â Btu/lb.) to a higher
calorific coal (approximately 9,000Â Btu/lb.) by removing up to 10% of
the total moisture. MicroCoal® has concluded that its technology can
substantially increase the calorific content of this specific low-rank
Indonesian coal above 11,000Â Btu/lb. by further reducing the moisture
content.
Slawek Smulewicz, CEO and Director of the Company, states: âThe
construction of this project, now underway in Indonesia, is validation
of the importance of our technology as part of a global energy solution
that improves the thermal output of coal and reduces the pollution it
generates. We are extremely delighted that PT Wijaya Tri Utama has
purchased the MicroCoal® technology to optimize the performance of their
coal plant, as Indonesia is one of the worldâs largest consumers of
low-rank coal. This first commercial installation in Indonesia will
serve to showcase the scalability of our modular microwave coal drying
and upgrading technology, which we plan to apply to coal-fired power
plants worldwide.â
About MicroCoal® Technologies Inc.
The Company is focused on commercializing its unique, clean-coal
upgrading technology known as MicroCoal®; a low-cost, patented microwave
technology that reduces moisture in coal resulting in an upgraded energy
content of coal. This process provides significant financial benefits to
coal-fired electrical generating utilities such as: large cost savings
from switching to low-rank coal, substantial increases in boiler
efficiencies and heat output, improved ash efficiencies and reductions
in scrubber costs. Important environmental benefits including reductions
in most greenhouse gases (SOx up to 70%, NOx up to 50%, CO2 up to 17%)
and mercury are also key primary benefits from implementation of this
technology. The Company is currently constructing the first commercial
facility in Indonesia with other projects to be announced shortly.
We seek safe harbor.
On behalf of the Board of Directors,
âSlawek Smulewiczâ
CEO and Director
For further information please contact:
J. Malcolm Bell
MicroCoal® Technologies Inc.
Telephone:
(604) 676 9792
E-mail: m.bell@microcoal.com
FOWARD-LOOKING STATEMENTS
Certain statements included herein, including those that express
management's expectations or estimates of our future performance
constitute "forward-looking statements" within the meaning of applicable
securities laws, including statements regarding the location,
construction, operation, maintenance and performance of the Facility,
the Construction Fee and other payments by PWTU to MCII, the
capabilities of theMicroCoal⢠technology and the application of
MicroCoal⢠technology to other coal plants. The reader is cautioned that
forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties, assumptions and other
factors which are difficult to predict and that may cause actual results
or events to differ materially from those anticipated in such
forward-looking statements.Forward-looking statements are based
on the then-current expectations, beliefs, assumptions, estimates and
forecasts about the business and the industry in which the Company
operates.Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which are
difficult to predict.Assumptions underlying the Companyâs
expectations regarding forward-looking statements contained in this news
release include, among others: that the Facility will be completed
substantially on time and on budget, the Facility will substantially
achieve the design specifications, PWTU and MCII will enter into
definitive documentation for the supporting agreements for the Facility,
and MCII will receive the Construction Fee and other payments from PWTU.Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including, without limitation, risks that: the
completion of the Facility will not proceed as expected; the Facility
will not perform as designed; MCII and PWTU will not agree to definitive
documentation for the supporting agreements on the terms expected or at
all; MCII will not receive the letter of credit in respect of the
Construction Fee and/or will not receive the annual payments and
maintenance fees on when due or at all; low-rank coal will continue to
be priced meaningfully lower than high-rank coal; off-peak electricity
prices will continue to be priced meaningfully lower than peak
electricity prices; and other risk factors listed from time to time in
the Companyâs public filings. These risks, as well as others, could
cause actual results and events to vary significantly.Accordingly,
readers should not place undue reliance on forward-looking statements,
which are qualified in their entirety by this cautionary statement.Except
as required by applicable securities law, the Company does not intend,
and undertakes no obligation, to update any forward-looking statements
to reflect, in particular, new information or future events. Neither
CNSX nor its Regulation Services Provider (as that term is defined in
the policies of the CNSX) accepts responsibility for the adequacy or
accuracy of the release.
Contacts:
MicroCoal® Technologies Inc.
J. Malcolm Bell, 604-676-9792
m.bell@microcoal.com
Source: MicroCoal® Technologies Inc.
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