MR3 Systems Announces its Agreement to Purchase and Expand the Butte, Montana Processing Facility; and the Successful Completion of its Year 2000 Objectives.
SAN FRANCISCO--(BUSINESS WIRE)--Jan. 3, 2001
MR3 Systems, Inc., (NQB:MRMR) today reported on the status of its overall progress in the continued execution of its business plan and of the ramp-up of its MR3 technology.
This follows the Company's milestone achievement of having proven the MR3 technology on a full commercial scale starting in May of 2000, through the present. The Company continues to accelerate sales of its products from its Butte, Montana processing facility.
On December 20, 2000 the Company entered into an agreement to purchase the property housing its MR3 plant at Butte, Montana, and to expand that facility to produce both copper sulfate and zinc sulfate simultaneously. The purchase of the property is being made through a seller-financed long-term mortgage. Should this transaction close as scheduled in early January, 2001, the Company expects to begin the full production of copper sulfate, along with its current production of zinc sulfate, during February, 2001. This increase in the plant's capacity is projected to yield a total of over $1 million in annual sales of these specialty chemical products, thereby reaching positive cash flow on a Company-wide basis by the second quarter of 2001. The Company is moving quickly to increase this additional capacity to produce copper sulfate, a product which is now in very strong demand world-wide as an organic biocide, fertilizer and several other critical uses.
Upon hiring Larry J. Hopper as its Senior Vice President of Business Development in September (see previous 9/27/00 Press Release), MR3 Systems was able to rapidly accelerate its push to capture significant market share in the processing of electric arc furnace ("EAF") dust and in the remediation of electro galvanizing line ("EGL") waste effluent streams from the steel manufacturing industry. The Company has begun receiving and analyzing EAF and EGL samples from major East Coast and Midwest steel companies. On December 13, 2000, it submitted the first formal steel mill proposal for the processing of EGL effluent. The next step is the execution of a letter of intent, anticipated shortly. This first project alone is expected to yield over $4M in annual revenue to the Company. The Company additionally projects the submission of at least 7 new EAF proposals during 1Q2001, and having 3 MR3 EAF processing facilities in operation before the end of 2001. These facilities are estimated to have the capability of processing a total of 55,000 tons of EAF on an annualized basis, producing revenues in excess of $10 million per year in service fees and end-product sales. This should allow the Company to leave fiscal 2001with an estimated $6.5 to $7.5 million EBITDA.
MR3 Systems also announced today the completion of two additional objectives in December, 2000; (i) the raising of over $1.2 million in equity working capital from private investors during fiscal 2000; and (ii) the completion of the spin-off of its wholly-owned subsidiary, Bioponic AGS, Inc., which was originally initiated for shareholders of record on January 31, 2000. In particular, the working capital which was raised this year has positioned the Company to rapidly increase sales and become profitable in fiscal 2001. The Company is pursuing additional equity financing and has begun to receive legitimate offers from institutional investors that should further accelerate its growth next year. These offers are currently being negotiated.
MR3 Systems expects to complete the necessary accounting and legal documentation to file its Form 10 with the SEC in January, 2001. The Company's 1999 financial audit is complete.
MR3 is a high-tech, state-of-the-art metals extraction and separation technology capable of converting hazardous liabilities into non-hazardous, profitable assets through the large-scale processing of industrial wastes and other complex metals sources into pure metals and specialty chemical products. The Company believes this to be the only technology available that can selectively and individually remove and purify all targeted metals from aqueous solutions economically on a commercial scale. The multi-billion dollar combined global markets for the MR3 System process include the processing and treatment of electric arc furnace dust, semiconductor manufacturing effluent, mercury and hydroxide sludges, precious metals mining tailings, various industrial waste water streams, and many other valuable applications.
Certain statements contained in this press release are forward-looking statements within the meaning of federal securities laws. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, many of which are beyond the Company's control.
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|Date:||Jan 3, 2001|
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