Canadian Oil Recovery & Remediation Enterprises Ltd.
TSX VENTURE : CVR

Canadian Oil Recovery & Remediation Enterprises Ltd.

July 15, 2008 17:04 ET

CORRE Announces Agreement to Acquire Mentra

TORONTO, ONTARIO--(Marketwire - July 15, 2008) - CANADIAN OIL RECOVERY & REMEDIATION ENTERPRISES LTD. (the "Corporation" or "CORRE") (TSX VENTURE:CVR) is pleased to announce that it has entered into an agreement to acquire Mentra Life Sciences Inc. ("Mentra"), a private company that provides engineering services in connection with the commercialization of high level, new technologies through the design, fabrication and development of project equipment and facilities on a turnkey basis. Mentra has been a key strategic partner of the Corporation, having provided all necessary engineering services to date. This acquisition will bring these key services (that include project planning and management) in-house for the Corporation and will also provide the Corporation with new and immediate income streams from Mentra's established business operations. The total purchase price for Mentra will be $490,000, $340,000 of which shall (subject to regulatory approval) be paid through the issuance of 523,077 common shares of the Corporation at an ascribed price of $0.65 per share. Mr. Wayne McKinnon, who currently serves as a director of the Corporation and is the President and sole shareholder of Mentra, has agreed to serve as President of the Corporation and has entered into a written employment agreement with the Corporation and Mentra for a term of three (3) years at a combined annual salary of $150,000 per annum. Mr. John Lorenzo, the current President and Chief Executive Officer of the Corporation, will continue to serve as the Chief Executive Officer of the Corporation following completion of this acquisition.

As noted above, the relationship between CORRE and Mentra has been an integral one, with Mentra having provided assistance with the design and fabrication of CORRE's proprietary Oxidation Stripping equipment and having acted as CORRE's key consultant in negotiations, discussions and supervision in connection with the development of CORRE's 20-ton APEX process equipment. This acquisition will result in valuable synergies for both companies. For CORRE, this acquisition provides the Corporation with much needed professional depth and a complete team of multi-disciplinary engineers and allows the Corporation to move forward as an oil service company with in-house ownership of all necessary skills and expertise. For Mentra, this provides access and participation in significant new technologies and new markets, both in terms of industry specialization and geography.

As all of the outstanding shares of Mentra are owned by a director of the Corporation, this transaction will be a "related party transaction", within the meaning of applicable securities laws and regulatory policies. The acquisition will be exempt from the valuation and minority shareholder approval requirements set forth in Multi-Lateral Instrument 61-101 on the basis that neither the fair market value of Mentra, nor the fair market value of the consideration being paid in respect thereof, exceeds twenty-five percent (25%) of the Corporation's total market capitalization. There are no finder's fees being paid in connection with this transaction. The acquisition has been reviewed and approved by the directors of the Corporation and is subject to receipt of approval from the TSX Venture Exchange.

About CORRE

CORRE is a Canadian company that has exclusive licenses to use two innovative technologies and processes for oil recovery, sludge and drill cuttings treatment and remediation of oil-contaminated sites. The first technology, namely, the APEX technology is well established. The APEX process equipment has been treating sludge and drill cuttings in many countries including India, Romania, Mexico, Panama and Norway. The second technology, known as the OS (Oxidation Stripping) technology, separates oil from sand and other solids. The process equipment utilizing the OS technology is proprietary prototype equipment which was exclusively developed by CORRE. The OS technology and process is best suited for unconventional oil production from oil sands.

CORRE plans to deploy its sludge and drill cuttings treatment and oil recovery process equipment in the oil producing countries of the Middle East where there is substantial demand for its oil recovery and remediation services especially in Kuwait. CORRE has already secured strategic local partnership in the Middle East, has built the process equipment and will be shipping the equipment to Kuwait this summer in preparation for its bid for Kuwait Oil Lakes projects anticipated for tendering by the Kuwait Oil Company in the fall of this year. CORRE is now in the process of applying to pre-qualify as a service provider to the Kuwait Oil Company under a pre-qualification for waste management.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. 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. Except as required by applicable securities requirements, the Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canadian Oil Recovery & Remediation Enterprises Ltd.
    John Lorenzo
    Chief Executive Officer
    (416) 309-2521
    (416) 368-5506 (FAX)