VANCOUVER, BC – BioteQ Environmental Technologies Inc. (TSX:BQE) is pleased to report that it has signed an option agreement to purchase 100% of the shares of Dennerik Engineering and Fabricating Company Limited (“Dennerik”) for consideration of cash and shares. This agreement will increase the skills and capacity of BioteQ to meet the increasing demand for water treatment technology.
The option agreement provides BioteQ the option to purchase the shares of Dennerik for three years, with provisions for extension for two additional years. Consideration agreed for the purchase of Dennerik includes C$ 500,000 in cash and one million shares of BioteQ. Dennerik has been a supplier of engineering and specialty fabrication services to BioteQ in the past, providing process modules for the Blackwell project in Oklahoma, and is currently providing engineering, fabrication and construction management services to BioteQ for the Mt. Gordon project in Australia and the Lluvia de Oro project in Mexico.
Potential Benefits for BioteQ
The potential benefits to BioteQ of the purchase of Dennerik include:
- An increase in the number of plants BioteQ can build each year,
- A reduction in the cost and risk in plant construction,
- Acquisition of key engineering, fabrication and construction management skill sets within the current employee and contractor base of Dennerik,
- Access to specialty fabrication facilities for the production of proprietary process equipment.
- Vancouver based engineering and fabrication to simplify project coordination.
BioteQ has worked closely with Dennerik in the past and is currently working with Dennerik on two critical construction projects in 2007. The Company is confident in the skills and track record of Dennerik to increase the project capacity of BioteQ to meet our growing commercial project demands in water treatment.
Dennerik – Company Description
Dennerik is a private company which owns office and specialty fabrication facilities in Burnaby, BC, a suburb of Vancouver, and has been providing engineering and fabrication services to the mining, metallurgical, water treatment and processing industries since 1981. The company has 21 full time employees and 6 contract employees, specializing in the engineering, fabrication and construction management of specialty process equipment, tankage, material handling equipment, and bulk process plants.
The option agreement signed with Dennerik provides BioteQ with an ongoing option for three years, at the discretion of BioteQ, to purchase all of the outstanding shares of Dennerik for $500,000 plus one million shares of BioteQ, subject to the shares trading on the Toronto Stock Exchange at a price of $C 3.00 or greater at the time of the exercise of the option. The option agreement also includes a provision to extend the option period for up to two years by increasing the option payment by 500,000 shares of BioteQ for each year of extension. The option agreement provides for an employment contract for the current General Manager and sole owner of Dennerik, for up to five years after the exercise of the option.
The purchase is subject to regulatory approval and environmental due diligence.
BioteQ Corporate Profile
BioteQ is establishing itself as a leader in the treatment of acid contaminated water through the use of its patented BioSulphide® Process and the ChemSulphide™ Process. Focused on the mining industry, BioteQ has partnered with leading metal producers including Phelps Dodge (Freeport), Breakwater, CVRD-INCO, Jiangxi Copper, Aditya Birla, Molymet and Xstrata as well as utilities operator EPCOR Water Services, to finance, design, build and operate mine site water treatment plants which recover saleable metals in addition to meeting ever stricter environmental regulations.
On behalf of the Board of Directors