TORONTO, ONTARIO--(Marketwired - July 11, 2013) - MagIndustries Corp. (MAA.TO) (the "Company" or "MagIndustries"). MagIndustries, is pleased to report that a Construction Engineering Supervision Contract (the " Contract") has been signed with Changsha Huaxing Construction Supervision Co., Ltd. ("CHCS" or the 'Supervisor") to supervise engineering work related to the Company's proposed 1.2 million tonne per year Mengo Potash Project (the "Project") in the Republic of Congo.
Key Terms of the Supervision Contract
CHCS will supervise engineering work on the seven major work modules and thirty-eight installations/systems of the Project. The seven major modules are: brine extraction and transportation, processing plant, compaction plant, thermal power plant, office/living quarter, off-plant works and loading jetty. The Supervisor may be assigned other work related to the Project subject to agreement between the parties.
The Contract comes into effect immediately and terminates at the later of September 30, 2015 or the date of mechanical completion of the Project. The Contract provides remuneration to CHCS of US$5.7 million plus a potential performance bonus of US$815,000 related to timeliness and quality of work.
About Changsha Huaxing Construction Supervision Cc., Ltd
Changsha Huaxing Construction Supervision Co., Ltd was established in 1995 and was one of first state-owned companies approved in China as a Class A supervision enterprise. CHCS is part of the China National BlueStar (Group) Co, itself a subsidiary of ChemChina. CHCS holds Class A supervision certificates for chemical engineering, petro engineering, quarry engineering, building engineering and municipal engineering, and also provides project management and technical consulting related to construction engineering and the non-destructive testing of special equipment.
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 Supervision 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
Mr. Rich Morrow
Director, Investor Relations and Corporate Development