FORT LAUDERDALE, FL, July 9, 2013 – (eTeligis via Accesswire) – BioPower Operations Corporation (BOPO), wholly-owned subsidiary, BioPower Corporation (BioPower" or the "Company"), has entered into agreements for the first stage of a project to develop a castor plantation and milling operation in the Republic of Paraguay with offshore entities (aka "Ambrosia and "Developer") for the testing and development of a project with up to $10,000,000 in financing upon certification of the castor yield effective July 2, 2013.
Under the terms of the Testing Services Agreement, the Developer will provide the land, pay costs for the testing and pay BioPower a monthly $45,000 project management fee and reimbursement of expenses during the test period for subcontractors on the ground in Paraguay. BioPower will provide project management testing services through the testing phase for up to 12 months until the successful certification of the yield from growing castor is proven, subject to material and adverse events. Once Ambrosia approves the project, then under the Castor Master Farm Management Services Agreement, the $10,000,000 to be invested from Ambrosia will go towards the development and operations of the first stage of the castor plantation and the building of the mill and its operations. BioPower will earn 6% of the net income for ten years or (not and) have an option to become a 20% owner of the project.
BioPower began the initial test phase in Paraguay, and has earned over $150,000 in project management fees to date. BioPower is confident that this initial test phase will be completed in the next 6-9 months and that the first stage of the project, encompassing approximately 1681 hectares or 4,154 acres of land, will begin thereafter.
Robert Kohn, CEO of BioPower, stated, "We are pleased to have the rare opportunity to work with an organization that can not only bring considerable equity, project funding, regional expertise, land and other opportunities to BioPower and a sizeable castor project, but also supports our long-term vision of developing profitable sustainable solutions converting biomass into useful and valuable products. It is our intention now and moving forward to complete the certification of the yield requirement and to prove the business model warrants a significant investment in the Paraguay project beyond the first stage."
ABOUT BIOPOWER OPERATIONS CORPORATION
BioPower Operations Corporation (BOPO) is a pre-revenue, developmental stage company focused on developing profitable sustainable solutions focused on the environmentally-friendly bio-conversion of biomass and organic wastes into useful and valuable products. The Company's subsidiary, Global Energy Crops Corporation (GECC), is focused on sub-licensing patented waste conversion technology capable of converting organic wastes from humans, poultry and hogs into Class A fertilizer, ethanol, animal feed and other products, to municipalities, poultry and hog producing corporations. BioPower and Agribopo, two wholly-owned subsidiaries are focused on the production, distribution and conversion of biomass crops. Their immediate focus is on the establishment of castor oil growing & milling operations in the Americas. The company was founded in 2010 and is headquartered in Fort Lauderdale, Florida.
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. There is no assurance that a definitive agreement will be completed.