Radar Acquisitions Corp.

Radar Acquisitions Corp.

January 29, 2008 13:59 ET

Radar Signs Term Sheet to Buy Producing Mine Operation in Alabama

CALGARY, ALBERTA--(Marketwire - Jan. 29, 2008) - Timothy Bergen, President and CEO of Radar Acquisitions Corp. ("Radar") (TSX VENTURE:RAC), is pleased to announce that Radar has signed a term sheet whereby RPS Fuels, LLC ("RPS"), the company it has formed with joint venture partner New Energy USA, LLC, will purchase the company and assets of D&E Mining, LLC, a producing coal mine in Alabama, USA.

RPS will pay $1.75 million for these assets, with 10 percent ($175,000) payable upon signing of the Purchase Agreement. Based upon the results of a 60-day due diligence period, the purchase price may be adjusted if any undisclosed liabilities are discovered, which, in the sole opinion of RPS, could have a material impact on the value of the properties.

"This is an ideal site to get RPS Fuels into an immediate cash flow situation and our company's Re-Fuel™ process into commercial production," says Linden Swensen, president of RPS Fuels, LLC. "There is an excellent opportunity for RPS Fuels to expand the D&E Mine lands and production in the near future."

The purchase shall include the D&E Mine ("the Mine") and leases on 210 acres of property with two underlying coal seams. There is currently one coal off-take agreement in place for the D&E Mine and a five-month contract with Georgia Power for 3,000 tons per month at $68.00 per ton beginning in February 2008. This contract is renewable upon agreement of the parties. Additionally, the Mine has submitted a bid to the Tennessee Valley Authority ("TVA") for the Scottsboro power plant for 3,000 tons per month beginning in February 2008. TVA has been a very good customer of the D&E Mine and management anticipates a positive decision in the near future. Current production capacity of the D&E Mine is 8,000 tons per month, with the majority of the coal coming from the bottom seam due to this seam's excellent quality. The lower-seam coal can be shipped directly to customers with no additional preparation.

Testing has found the top seam of coal at the D&E Mine to be a perfect candidate for the RPS Re-Fuel™ patent pending technology and the company believes it could double mine production in the very near term. Upon signing the term sheet, RPS began pursuing a revision to the current mine permit that would allow it to place a Re-Fuel™ wash system at the site. The permitting process is estimated to take approximately 70 days, after which installation of a Re-Fuel™ plant will begin.

RPS also anticipates the securing of mineral rights to the 2,000-acre Fabius waste coal impoundments located near the D&E Mine. The US Federal Government has approved the Abandoned Mine Lands designation for this site and it is currently in the public comment stage prior to submission for approval to the Alabama Office of Surface Mines. Once the designation has been granted, activities will commence on the site to bring it into production using the Re-Fuel™ Technology to produce Re-Fuel™ for the steam markets in the surrounding area.

Through this acquisition, RPS Fuels, LLC, will acquire approximately $350,000 of CDs (certificates of deposit) and an estimated depreciated value of $500,000 worth of excavating and reclamation equipment essential to coal recovery. Additionally, it secures an experienced labor force, reserves, licensing, certificates, mineral rights and sales contracts to immediately engage in the recovery and cleaning of waste coal in the Sand Mountain region of northern Alabama. Sand Mountain has a long history of consistently yielding premium low-sulfur coal to the southern United States coal-based power generation markets.

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. Radar 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 Radar's expectations are disclosed in the Radar'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

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