TORONTO, ON--(Marketwired - December 21, 2016) - STT Enviro Corp. ("STT" or the "Company") (TSX VENTURE: STT) is pleased to announce the signing of a Memorandum of Understanding ("MOU") to form a joint venture ("JV") with a leading producer of lime. The MOU establishes that each party would own 50% of the equity in the joint venture and be equally represented on the Board.
The plan of the JV is to launch a Disruptive Business Model. Pursuant to the model, the JV would fund new client systems or upgrades to existing client systems. The JV would also provide advisory services to the clients. Work done by the JV is expected to provide significant operational savings to the clients. STT has already documented proven savings in a North Dakota power plant's flue gas desulfurization system of approximately $1 million per annum. This was achieved through reduced lime consumption, maintenance reduction, reduced carbon footprint, increased through put capacity and increased Sulphur scrubbing. (This case study is available on the STT Enviro Corp website.)
The JV intends to market, develop and operate lime systems and client solutions under the following business models: Build Own Operate, Build Monitor, Upgrade Operate, or Upgrade Monitor. The intent of the JV is to utilize STT Intellectual Property and the JV's mutual technical and systems expertise to provide clients with this new disruptive business model which can provide mining companies, power and environmental companies as well as municipalities and others, a new and effective way to reduce costs and environmental impact with no financial risk.
It is expected STT will provide, among other things: Equipment and engineering, Intellectual Property, industry contacts and technical expertise and that the JV partner will provide, among other things: Capital, supply chain, product and technical expertise. The parties shall cooperate in supplying personnel as required based upon specific project requirements. Cooperation includes the sales, marketing, development and operational aspects of the JV.
The MOU establishes the headings for a detailed JV agreement, which agreement must be executed before the JV is finalized. Finalization of the JV agreement remains subject to certain corporate approvals.
About STT Enviro Corp.
STT Enviro Corp. (TSX VENTURE: STT) supplies cost-effective, incremental, environmental improvements to traditional industrial products. STT Enviro Corp Systems & Solutions engineers and supplies chemical make-down systems to neutralize pollutants (usually acidity in air or water); and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint. STT Enviro Corp Tanks & Industrial engineers and supplies bolted tanks and silos with a smaller environmental footprint for both dry and liquid storage applications.
For more information, please visit our website at www.sttenvirocorp.com.
Caution Regarding Forward-Looking Information and Non-IFRS Measures
This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of the Company. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of the Company considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of STT nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.
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