KIRKLAND LAKE, ONTARIO--(Marketwire - Mar 11, 2013) - NORDEX EXPLOSIVES LTD. (TSX VENTURE:NXX) ("Nordex") is pleased to announce a memorandum of understanding agreement has been reached with Wahgoshig Limited Partnership through its general partner Wahgoshig Resources Inc. pursuant to which the parties have agreed to enter into a working relationship which is expected to be structured as a limited partnership.
Through such working relationship, both Nordex and Wahgoshig intend to pursue business opportunities with those customers operating in the mining, quarry and construction industries with which Wahgoshig have a working agreement and which have a need for the use of explosive products, accessories and related services.
Wahgoshig has agreed to work with Nordex in an exclusive manner to pursue the explosive business of those customers which require the supply of explosive products, accessories and related services in the geographic territory where the Wahgoshig First Nation holds "territorial rights".
In addition to this new relationship with Wahgoshig, Nordex previously announced its intention to enter into a working relationship with the Wabun Tribal Council through the formation of a limited partnership expected to be known as "Niimki Explosives".
These agreements/relationships, are subject to the completion of definitive documentation and the requisite corporate, regulatory and TSX Venture Exchange approvals and are intended to develop and create new opportunities for both Wahgoshig and Wabun First Nation businesses and members.
The "territorial rights" of our new First Nation partners covers a large land mass comprising most of Northeastern Ontario including the well known Timmins and Kirkland Lake mining camps which represent the heart of the gold mining industry in Canada.
Jim Taylor, President & CEO, stated, "We are very excited about working with both Wabun and Wahgoshig as we share many of the same objectives and goals with regard to the development of Northern Ontario and the protection of our collective interests and rights. Nordex is committed to the future of Northern Ontario and as a local Company appreciates the importance of our environment and resources and supports the principal that their use should be to the benefit of the people and communities of the North. We are very proud of the fact Nordex is the only truly Canadian explosive company manufacturing products in Canada for the benefit of Canadians."
The above agreements create many new opportunities for Nordex which also recently announced the opening of a new strategic distribution site. The site is located in the Muskoka Region of Ontario. It is estimated the market potential within a 200 kilometer radius from this location could be up to $25,000,000 in annual explosive sales to key quarry, construction and mining companies. There can be no assurances that Nordex will be able to win a significant portion of this business. The site is the first of at least two such locations expected to be added by the end of 2013.
Nordex also recently announced it closed its previously announced non-brokered private placement offering of common shares on November 12, 2012 and December 10, 2012. The offering was oversubscribed with the Company issuing 10,132,976 shares at a price of $0.45 per share to raise gross proceeds of $4,559,840. The net proceeds will be used to fund investment in the Company''s distribution system and for additional working capital.
Any financial information indicated as set out in this news release is presented on a basis consistent with the accounting principles used to prepare Nordex'' most recently filed financial statements. Readers are advised that the Company faces various risk factors with respect to its business and operations: for further information please see the Management Discussion and Analysis of Nordex at www.SEDAR.com.
ABOUT NORDEX EXPLOSIVES: LES EXPLOSIFS NORDEX LTEE./NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world''s largest mining regions near Kirkland Lake, Ontario. Nordex is the exclusive supplier of the Econotrim and Ezicharge Johnex Explosives products in Canada. Nordex trades on the TSX Venture Exchange under the symbol "NXX".
Additional Information relating to the Company is available on SEDAR at www.sedar.com.
Certain information included herein may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company''s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management''s current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company''s actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Company''s Management Discussion and Analysis for the Third Quarter and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management''s assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.