ADA-ES Signs Letter of Intent with NexGen to Form Refined Coal JV.LITTLETON, Colo. -- ADA-ES, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADES (language) ADES - An early system on the IBM 704. Version: ADES II. [Listed in CACM 2(5):16 (May 1959)]. ) today announced that it has signed a Letter of Intent with NexGen Resources Corporation to form a 50/50 Joint Venture to pursue opportunities based upon ADA-ES' Refined Coal technology. The LOI LOI Letter of Indemnity (international trade and carriage business) LOI Letter Of Intent LOI Loss On Ignition LOI Letter of Inquiry LOI Lack Of Information LOI Lack of Interest LOI Letter of Invitation LOI List Of Items calls for NexGen to pay ADA-ES a nonrefundable fee of $100,000 upon signing, $900,000 upon signing of definitive agreements and completion of certain test results and two additional payments of $2 million each on the first and second anniversary of signing definitive agreements, if NexGen opts to continue its participation in the Joint Venture. The LOI also calls for NexGen to pay 50% of future development cost for the rights to one-half of any tax credits generated from future sales of Refined Coal. The opportunity is based upon Section 45 tax credits made available through the American Jobs Creation Act of 2004 for a Refined Coal that generates reduced emissions of nitrogen oxides, sulfur dioxide sulfur dioxide, chemical compound, SO2, a colorless gas with a pungent, suffocating odor. It is readily soluble in cold water, sparingly soluble in hot water, and soluble in alcohol, acetic acid, and sulfuric acid. and mercury. The Act provides a tax credit with a current value of approximately $5.60 per ton of Refined Coal, which can be earned for a period of ten years ending in or before 2019. The ADA-ES Refined Coal technology was developed for slagging boilers that the Company expects will create a target market of approximately 60 million tons of Refined Coal per year. ADA-ES will license its Refined Coal technology to the JV on an exclusive basis for the purpose of qualifying for such tax credits. NexGen is a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. dedicated to the development and procurement of natural resources. With over 30 years of experience in the coal business, NexGen is involved in all aspects of the mining, transportation and delivery of coal to utilities. In addition to conventional coal, since 1998 NexGen has been involved with the development and supply of coal-based synfuel syn·fu·el n. A liquid or gaseous fuel derived from coal, shale, or tar sand, or obtained by fermentation of certain substances, such as grain. [syn(thetic) + fuel.] . To date, the plants developed by NexGen's synfuel project have qualified for over $600 million in tax credits under Section 29 of the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Code. ADA-ES has conducted two tests of its developing technology and is encouraged by the results. "We are very pleased with the progress we have made thus far with the technology development. We believe that this relationship with NexGen is very strategic for the Company as it provides us the expertise to clarify the IRS regulations for utilities and bring to market a profitable new product," stated Dr. Michael Durham, President of ADA-ES. Mr. Charles McNeil, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of NexGen, concurred, "We are excited about this opportunity, which will allow us to leverage our proven expertise in managing and marketing coal-based tax credits and join forces with ADA-ES' world-class emission control The selective and controlled use of electromagnetic, acoustic, or other emitters to optimize command and control capabilities while minimizing, for operations security: a. detection by enemy sensors; b. mutual interference among friendly systems; and/or c. expertise. This is the kind of teaming for which the Section 45 program was created." About ADA-ES Headquartered in Littleton, Colorado The City of Littleton is a home rule municipality located in the Denver Metropolitan Area of the State of Colorado. As of 2005, the city is estimated to have a total population of 40,396.[1] Littleton is the 17th most populous city in the State of Colorado. , ADA-ES, Inc. develops and implements proprietary environmental technology and specialty chemicals that mitigate the environmental impacts from electric power and industrial companies, while reducing their operating costs. About NexGen NexGen Resources Corporation, headquartered in Denver, Colorado, was founded in 1993 by Charles S. McNeil. NexGen and its affiliated entities comprise a closely-held investment group which manages a diverse portfolio of investments in companies at multiple stages of growth and across multiple industries, with an emphasis on the energy and mining industries. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which provide a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for such statements in certain circumstances. These statements include the Company's expectations regarding the potential market for Refined Coal and ability to bring a profitable new product to market. Such statements involve significant uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors including but not limited to changing economic conditions and market demand for ADA-ES' products and services, changes in technology, federal funding, laws or regulations, results of demonstrations of the Company's and other licensed technologies, operational difficulties, availability of skilled personnel, and other factors discussed in the Company's filings with the U.S. Securities and Exchange Commission. |
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