BioteQ Receives Payment for SART Plant Equipment

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Source: BioteQ Environmental Technologies

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/27/12 -- BioteQ Environmental Technologies, Inc. (TSX: BQE), a leader in the treatment of industrial wastewater, has received payment of US$650,000 plus applicable taxes from NWM Mining, for the recently announced sale of SART plant equipment located in Lluvia, Mexico. A cash payment has been received by BioteQ, and ownership of the equipment has been transferred to NWM Mining on an 'as is' basis.

Jonathan Wilkinson, BioteQ's CEO stated, 'BioteQ evaluated all available options associated with the equipment located at the Lluvia, Mexico site, to determine the best value for our shareholders. By avoiding demobilization costs that were quoted to be approximately $450,000, and receiving a $650,000 cash payment for the equipment, the sale to NWM generates a net positive cash impact of $1.1 million. This figure is in addition to the $1.3 million legal settlement achieved in April. The overall net positive cash impact to the company from these combined transactions is $2.4 million, approximately equivalent to the original cost of the equipment, excluding labour.'

Prior to entering into negotiations with NWM regarding sale of the equipment, BioteQ evaluated all other relevant options. These options included repurposing the equipment for use in another plant, and demobilisation of the plant and the subsequent sale of all components that are in useable condition.

In evaluating the potential to repurpose the equipment, BioteQ concluded that the condition of the equipment, which has not been maintained by BioteQ for more than 3 years since the company leased the plant to the site owner, was not well suited for a sale to a new customer. Furthermore, the company presently has no near term projects that could utilize equipment with the capacity and grade of steel that comprise the Mexican plant.

BioteQ's review of demobilisation and resale of the equipment as components included a rigorous request-for-proposal process to develop a clear sense of potential value. Based on the quotations received, demobilization and the subsequent sale of the equipment components that remain useable to third parties was estimated to generate revenues approximately equal to demobilization costs.

In addition to the issues noted above, both alternative options would have required that BioteQ invest significant time and key resources into the demobilization and resale related activities. BioteQ will not need to make such investments with the sale arrangement.

The plant in Mexico was built in 2008. It has been idle since NWM ceased making payments to BioteQ under the lease to own arrangement. The equipment sale follows the settlement of legal claims by BioteQ against NWM in April for unpaid lease payments. Under the terms of the settlement, BioteQ was obligated to remove the SART plant by September 30, 2012. The $650,000 payment received by BioteQ for the equipment sale is in addition to the $1.3 million NWM has agreed to pay BioteQ over the next two years.

BioteQ Corporate Profile

BioteQ is an innovative clean technology leader in global industrial water treatment, serving the mining and energy markets. The company's proven technologies have been applied at sites around the world to recover dissolved metals and remove sulphate, producing clean water and eliminating residual waste. BioteQ is headquartered in Vancouver, Canada and trades on the TSX under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain information contained herein may not be based on historical fact and therefore constitutes 'forward-looking information' under applicable Canadian securities legislation. This includes without limitation statements containing the words 'plan', 'expect', 'project', 'estimate', 'intend', 'believe', 'anticipate', 'may', 'will' and other similar words or expressions. 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, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at www.sedar.com (including without limitation the factors described in the section entitled 'Risks and Uncertainties' in the Company's Annual Report for the year ended December 31, 2011 and the section entitled 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2011). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

 

Contacts:
BioteQ Environmental Technologies Inc.
Tanja McQueen
VP Corporate Development
604-685-1243 or 1-800-537-3073
604-685-7778 (FAX)
investor@bioteq.ca
www.bioteq.ca

 

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