TORONTO, ONTARIO--(Marketwired - July 29, 2013) - MagIndustries Corp. (MAA.TO) (the "Company" or "MagIndustries"). Further to its press release of July 10, 2013 indicating that a conditional General Contract had been signed with East China Engineering Science and Technology Co., Ltd. ("ECEC") MagIndustries, is pleased to report that the General Construction Contract (the "General Contract") has been finalized and is now unconditional. The General Contract remained conditional until the General Contractor provided to the Company a performance guarantee registered with a bank which could be demanded by the Company in the event of non-performance of certain obligations specified in the General Contract. The Company informed the General Contractor yesterday that it was satisfied with the guarantee provided.
As more fully described in the July 10, 2013 Press Release, under the General Contract ECEC will provide a range of services related to the planning, construction and performance of the Company's proposed 1.2 million tonnes per annum Mengo Potash Project in the Republic of Congo. The General Contract has a fixed price of approximately USD$497 million plus a non-fixed component of approximately USD$24.5 million, as an incentive to the General Contractor for timely completion and quality of work. Progress payments will be made quarterly. The Contract Price will be adjusted if changes are made to the scope of work.
The finalization of the General Contract is an important milestone for the Company toward achieving its ambitions to be a major potash producer for worldwide markets
About East China Engineering Science and Technology Co., Ltd.
Based in Beijing, Peoples Republic of China, ECEC is a modern scientific and technological engineering company with the former Third Design Institute of the Ministry of Chemical Industry as its principal initiator. It was the first joint-equity enterprise in the prospecting and engineering industries approved by the former State Economic and Trade Commission. It was listed on Shenzhen Stock Exchange in July, 2007.
ECEC specializes in technology research and development, consultation, engineering design, procurement, construction management, start-up training, supervision, project management contracting and general contracting, etc. in the domain of project construction. ECEC has a dozen state Class-A qualifications in the field of chemical industry, petrochemical industry, municipal works, architecture, environmental protection and other fields, as well as Class A qualification for general contracting of projects. It has qualifications for overseas contracting projects with import-export operation rights as well as QHSE management system certification of conformity. Over the past 50 years, ECEC (including its principal initiator) has completed more than 1,000 projects covering various large and medium-sized engineering design and turnkey project contracts, and has earned more than 200 ministerial/provincial and higher level awards such as the National Prize for Progress in Science and Technology, the Silver Key Prize for Turnkey Project Contracting, the Prize for Excellent Engineering Design, Outstanding Project Supervision Company, etc. In the meantime, ECEC has successively completed a number of overseas project construction mandates and accumulated rich experience in overseas project construction.
About MagIndustries Corp.
MagIndustries is a Canadian company whose common shares are listed on the TSX and trade in Canadian currency under the symbol "MAA". The Company has 755,942,674 common shares outstanding. MagIndustries is focused on the development of its potash assets in the Republic of Congo. More information on the Company is available on its website, www.magindustries.com.
Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, country policy and political risks, currency exchange risk, changing market conditions, force majeure events, and other risks detailed from time-to-time in the Company's ongoing filings. Specifically, with respect to this press release there is a risk that either party may fail to meet its obligations under the General Contract, or additionally that the project finance loans necessary for the Project to proceed may not be approved or may not be approved in a timeframe that allows the Project to proceed on the expected schedule. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.
Cusip: 55917T 102
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Mr. Rich Morrow
Director, Investor Relations and Corporate Development