Radar Acquisitions Corp.
OTC Bulletin Board : RDAQF

Radar Acquisitions Corp.

August 27, 2007 08:30 ET

Radar Enters into Joint Venture with New Energy USA, LLC, for Engineered Solid Fuel Technology and Coal Slurry Pond Projects

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2007) - Further to a press release dated June 5, 2007, Timothy Bergen, President and CEO of Radar Acquisitions Corp. ("Radar") (TSX VENTURE:RAC)(OTCBB:RDAQF) is pleased to announce that Radar has signed an arm's length Joint Venture Agreement (the "Joint Venture Agreement") with New Energy USA, LLC ("New Energy"), to establish a Joint Venture to utilize New Energy's Re-Fuel technology process (the "Re-Fuel Technology") to develop engineered solid fuel products using a combination of reclaimed coal slurry pond waste and biomass. The Re-Fuel Technology is a patent pending process that combines a coal waste product with bio-mass to produce an engineered solid fuel product called Re-Fuel. The Re-Fuel Technology has been licensed for use on three project sites in the United States to date.

The Joint Venture Agreement sets out terms whereby Radar, through the ownership of 50 percent of a legal entity created for each of the Projects (each, a "JV Entity"), will acquire a 50 percent interest in each of four coal slurry pond briquette projects (collectively, the "Projects"), as well as the option to participate in additional projects, for consideration of US$1.0 million in common shares of Radar (at a deemed price of US$0.25/share for an aggregate of four million Radar common shares). Three quarters (75 percent) of the shares will have performance escrow restrictions such that one quarter (25 percent) of the shares will be released upon the commencement of production of engineered solid fuel from each of Projects 1, 2 and 3. New Energy will have no voting rights to Radar shares while they are held in escrow. Any shares remaining in escrow after three years will be cancelled.

In addition, the Joint Venture Agreement contemplates payments by Radar of US$150,000 to secure and maintain ownership of the Projects and begin a budgeted work program for the Projects. Such payment will be made to RPS Fuels, LLC, a company created to develop, market and pursue the business of developing Project 1. A sum of US$2,250,000 will be paid to RPS Fuels upon Project 1 reaching the feasibility stage and provided the payment is used for the total project financing needed for Project 1 and to maintain property ownership for the Projects. US$2,250,000 will be paid to RPS Fuels or a second JV Entity, provided that such payment is used to complete the total project financing for Project 1, and provided that the payment is used to maintain ownership of the Projects, and to develop the Projects or any additional projects. With regards, to the option to acquire additional projects (the "Additional Projects"), a JV Entity will have a right of first refusal to purchase up to 100 percent of any Additional Project staked, acquired or otherwise obtained by New Energy and/or Radar. The establishment of the Joint Venture is subject to final TSX Venture Exchange approval and the consideration is being held in trust, accordingly.

Radar will continue to update shareholders on the progress of future corporate news, financings, and project developments. Management welcomes the opportunity to present detailed project information to shareholders or other interested parties.

About Radar Acquisitions Corp.

Radar is a diversified natural resource development company focused on growth through the acquisition, exploration and development of resources and resource related technologies. The company is focused on a joint venture agreement it has with New Energy USA, LLC, to develop engineered solid fuel products (Re-Fuel) using a combination of coal slurry pond waste and biomass.

Re-Fuel will benefit the environment through the reclamation of coal slurry and other bio-refuse in the production phase and cleaner stack and ash emissions in the power generation phase. Production of Re-Fuel can qualify the producing joint venture company for a variety of tax credits while providing coal waste owners/suppliers with a significant benefit by decreasing site reclamation costs. Users of Re-Fuel will benefit from a competitively priced, cleaner, more efficient product that may also make them eligible for substantial carbon credits.

All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX-Venture Exchange, the Alberta Securities Commission, and the British Columbia Securities Commission.

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

Contact Information

  • Corporate Head Office:
    Radar Acquisitions Corp.
    Timothy J. Bergen
    (403) 262-3797 or Toll Free: 1-877-262-5888
    Email: tbergen@radar.ab.ca
    Investor Relations:
    Ascenta Capital Partners Inc.
    Bryson Goodwin
    (604) 684-4743 ext 239 or Toll Free: 1-866-684-4209
    Email: bryson@ascentacapital.com