TORONTO, ONTARIO--(Marketwire - Nov 7, 2012) - Augusta Industries Inc. ("Augusta" or the "Corporation") (TSX VENTURE:AAO), a developer and manufacturer of patented non-intrusive sensing systems, is pleased to announce that, through its wholly owned subsidiary, Fox-Tek Canada Inc., has just signed its 3rd contract with Inter Pipeline Fund (" IPF") to add to its current sales pipeline totaling $1.53 Million as of November 06, 2012.
The purchase of the two EMF systems by IPF are additions to the number of the Corporation''s systems already being utilized by IPF on its pipeline network. IPF is a publicly traded limited partnership based in Calgary, Alberta that owns and operates a diversified combination of energy infrastructure assets in western Canada, the United Kingdom, Denmark, Germany and Ireland. It operates approximately 6,100 kilometres of petroleum pipelines and 4.8 million barrels of storage in western Canada. These systems transport approximately 950,000 barrels per day of oil sands bitumen and conventional crude oil, representing approximately 15% of total western Canadian conventional volumes and approximately 35% of oil sands volumes.
"We are pleased that Inter Pipeline Fund continues to utilize the Corporation''s monitoring systems for its pipeline assets," stated Allen Lone, the President of the Corporation. "Our clients continued reliance of the Corporation''s systems over the past several years and their continued use of the systems is a testament to the ability of the systems to provide the information necessary for our clients to maintain its assets."
Augusta would also like to announce that it has received approval from the TSX Venture Exchange to amend the maturity date of the $365,000 in secured convertible debentures (the "Debentures") and the expiry date of the 4,055,555 common share purchase warrants (the "Warrants") of the Corporation, which were issued in connection with the Corporation''s non-brokered private placement of the Debentures which were issued on May 7, 2011. The conversion price and maturity date of the Debentures and the expiry date of Warrants were previously amend in May, 2011 (for complete information on the Debentures and Warrants and the previous amendment please refer to the Corporation''s press release of May 7, 2010 and November 6, 2011) and November 4, 2011.
The Debentures, as amended, bear interest at a rate of 12% per annum payable in cash on November 7, 2012 and are convertible into common shares in the capital of the Corporation at a price of $0.10 per common share. Each Warrant, as amended, entitles the holder thereof to purchase one common share of the Corporation at any time until the close of business on November 7, 2012 at an exercise price of $0.10 per common share.
The Debentures and the Warrants will be amended, effective November 7, 2012, to extend the maturity date of the Debentures to November 7, 2013 and to extend the term of the Warrants until November 7, 2013. All other provisions of the Debentures and Warrants will remain the same. Insiders of the Corporation hold less than 7% of the Debentures and outstanding Warrants.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon") and FOX TEK Canada Inc. ("Fox Tek"), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon''s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon''s major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. The Corporation''s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
This press release contains forward-looking statements based on assumptions, uncertainties and management''s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation''s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.