American Imaging Signs Letter of Intent to Acquire New Mexico Recycling Center.MIAMI--(BUSINESS WIRE)--July 15, 1998-- -- Company to Refine Mineral Deposits in Connection with Environmental Mandate -- American Imaging Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AMIG AMIG American Modern Insurance Group ) announced Wednesday that it has signed a letter of intent to acquire the ongoing business, assets and certain liabilities of New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). Recycling Center Inc., located in Silver City, N.M. New Mexico Recycling is a regional processor of miners' concentrates and left-over tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. . New Mexico Recycling serves small to mid-sized operators with compliance to federal and state mineral processing mineral processing or ore dressing Mechanical treatment of crude ores to separate the valuable minerals. Mineral processing was at first applied only to ores of precious metals but later came to be used to recover other metals and nonmetallic minerals. regulations. New Mexico Recycling either acquires or contracts to process concentrates or tailings allowing the company to realize a percentage of the refined precious materials. American Imaging intends to form a new subsidiary to house the operations of New Mexico Recycling, and to provide funding for certain equipment, retrofitting and labor. New Mexico Recycling acquires or contracts raw material for processing, and delivers the refined minerals to a third party for final separation and refinement. A portion of the refined minerals, which include small quantities of silver and gold, will be returned to the company or sold on its behalf by the final processors. Although New Mexico Recycling already has acquired certain material for processing, American Imaging's involvement will permit the efficient processing of this material, and will enable the company to actively solicit additional raw material, concentrates and/or tailings. Although the parties believe that it is premature to estimate the value of this transaction, or the value of the raw material presently owned by New Mexico Recycling, they anticipate a purchase price consisting of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. convertible into common stock with a maximum value of $2.0 million, following the completion of one full fiscal year. The transaction, which is subject to further due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. by both parties and other conditions precedent, also will require a funding commitment by American Imaging of approximately $500,000, for capital improvements. Although there can be no assurances that this transaction will be consummated, or when, the parties are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that it will be successfully concluded within the next 90 days. Earlier this month, American Imaging acquired New Wave Marine Inc., which will begin actively marketing its starter interlock A device that prohibits an action from taking place. device for recreational boats in early August. New Wave Marine is seeking to acquire other electronic products and accessories to market to the recreational boating industry. American Imaging is pursuing a plan to become a holding company for a broad spectrum of businesses with which the U.S. is consistently identified, including health care, electronics and international trade.
CONTACT: American Imaging Inc., Miami
Agustin Barres, Treasurer, 305/267-3891
or
New Mexico Recycling, Silver City
Benito Sauceda, Vice President, 719/488-2484
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