CALGARY, ALBERTA--(Marketwire - Feb. 21, 2013) - West Mountain Capital Corp. (TSX VENTURE:WMT) ("the Company") announces that it has entered into a Joint Venture Framework Agreement (the "Framework Agreement") with Liaoning Huafu Environmental Engineering Co. Ltd. ("Huafu"). The Framework Agreement builds on the subcontract agreement in principal to supply Thermal Phase Separation ("TPS") technology for the treatment of hazardous industrial sludge in Changqing, China that the Company entered into with Huafu in September 2012.
Pursuant to the Framework Agreement the Company and Huafu have agreed to combine their respective strengths, resources, technologies and expertise to collaborate in China for mutual benefit through a joint venture company (the "JV Company") focused on hazardous industrial sludge treatment. The Framework Agreement sets forth the terms of cooperation and will govern the strategic relationship between the Company and Huafu until the incorporation of the JV Company. The definitive agreement providing for the new JV Company is expected to be finalized by March 31, 2013.
Huafu has been contracted by a major client to design, build and operate a hazardous industrial sludge treatment facility to service one of its processing plants located in Changqing, China. This contract is be carried out by the JV Company partially using the Company's TPS technology. The TPS technology will be integrated into Huafu's sludge treatment facility and will render the hazardous sludge produced by Huafu's pre-treatment equipment inert while extracting hazardous organic compounds and water for reuse and recycling. The Company will have equity in the entire business through its interest in the JV Company rather than a subcontractor role. The Changqing contract has a 10-year term and, if successful at the first processing plant, will be expanded to include at least another 4 locations.
"This is yet again another major step forward for the Company in the Chinese environmental remediation market", said Paul Antle, President and CEO. "Huafu is a highly respected and profitable private company based in China with a long track record of success. We both recognize the value of being full equity partners in a business rather than in a contractor-subcontractor arrangement and the enormous potential for our combined resources. Huafu brings the start-up capital, complimentary technology, contracts and contacts while PS2 brings its TPS technology, engineering know-how and global experience".
Construction of a small TPS unit for the Changqing project will commence immediately. Huafa has agreed to bridge finance the Company's portion of the construction costs. It is anticipated that this TPS unit will be in service by the fourth quarter of 2013.
"This application of TPS technology in a fully integrated waste treatment facility is new for our Company and we are excited by the prospects of how this can be expanded throughout China" said Antle.
About West Mountain:
The Company is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. It employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil, industrial sludge and waste converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. The Company's management team maintains expertise in hazardous waste management and contaminated site remediation with experience spanning North America and internationally throughout 14 countries.
Huafu Environmental Engineering Company is a division of the Liaoning Huafu Group. The Company was established in 1992 specializing in R &D, consulting, procurement, manufacturing, engineering and cooperative investment in the areas of heavy oil recovery, wastewater treatment and energy conservation from different industries. In addition to Huafu Environmental Engineering the group includes Liaoning Huafu Petroleum Hi-tech Corp. Ltd, Liaoning Huafu-Andmir Environment Equipment, Shandong Huafu Petroleum & Environmental, and the Panjin Huafu LengJia Wastewater Treatment Plant. The Huafu Group has innovated and developed some 300 different advanced products and technologies and hold over 51 registered patents in China for environmental equipment.
Cautionary Statement: Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements with respect to potential operations in China and future deployments of the TPS technology. The forward-looking statements and information are based on certain key expectations and assumptions made by West Mountain, including expectations and assumptions concerning the plan to be awarded contracts to treat such material. Although West Mountain believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because West Mountain can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the treatment of hazardous industrial sludge in general, attempting to secure work, the uncertainty of estimates and projections relating to the value of the contract, health, safety and environmental risks, transportation costs, environmental risks, failure to realize the anticipated benefits of the contract, failure to obtain required regulatory and other approvals, and changes in legislation, including but not limited to environmental regulations, and risks associated with doing business in China. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company's most recent annual management's discussion and analysis that is available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements included in this news release are expressly qualified by this cautionary statement. The forward-looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.