VANCOUVER, B.C.– BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in the treatment of industrial waste water, has filed legal action against Birla Mt. Gordon (“Birla”), owner of the Mt. Gordon copper mine in Queensland, Australia for breach of contract related to water treatment operations with BioteQ’s water treatment plant at the Mt. Gordon site. BioteQ has filed a legal action with the Supreme Court of Western Australia seeking damages in respect of BioteQ’s capital costs, damages for expected operating profit, damages for wasted expenditure plus interest and related costs.
Brad Marchant, BioteQ’s CEO stated, “We are very disappointed that, despite almost two years of discussions, we have not been able to reach agreement with Birla to re-establish our water treatment operations on a long term basis at the Mt. Gordon site and address the need for change in the overall approach to water treatment and management of mine impacted waters that have accumulated at the site from severe rain events in 2009 and 2010. Unfortunately, the courts seem to be our only remedy at this time.”
Birla Mt. Gordon, a subsidiary of India-based Aditya Birla Minerals, has filed a statement of claim with the Australian courts, claiming that BioteQ is in breach of the operating contract. Birla is seeking unspecified financial damages, interest and costs. BioteQ believes that Birla’s claim is without merit. Potential costs associated with the claim are not known at this time. BioteQ has retained legal counsel in Perth to respond to the claim and has filed a defense and counterclaim action against Birla Mt. Gordon for breach and wrongful repudiation of the contract.
BioteQ has recorded an impairment charge, net of expected insurance proceeds, of $7.5 million in its 2010 financial results, to reflect the book value of the plant asset.
BioteQ has contracted an independent engineering firm to assess the current plant condition and the Company is reviewing its insurance claim.
BioteQ Corporate Profile
BioteQ creates custom water treatment solutions to recover dissolved metals and remove sulphate from water impacted by mining, energy and industrial activities. The company’s clean technologies convert wastewater into a useful resource while delivering lower life cycle costs for water treatment. BioteQ has designed and commissioned 14 plants at sites in Canada, the US, Mexico, Australia and China, with additional projects in development.
BioteQ’s sustainable water treatment solutions have been recognized with national and international awards for innovation and sustainability. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bqewater.com.
On behalf of the Board of Directors
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain information contained herein constitutes “forward-looking statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “might” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled “Risks” in the Company’s Annual Report for the Year Ended December 31, 2010. Circumstances or management’s estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.