- Published: 05 November 2008
- Written by Editor
ZEOX Corporation Subsidiary Signs 10 Year Supply Contract; Nanostructured Minerals Corp. Signs Contract For Estimated Sales of $75,000,000 CDN
Mr. LuVerne E.W. Hogg, President and CEO of ZEOX Corporation (TSX VENTURE: ZOX)(FRANKFURT: ZED), is pleased to announce that the Company's subsidiary Nanostructured Minerals Corporation ("NMC") has signed a ten-year agreement to supply sodium sulphate to Canada's largest producer of potassium sulphate, with estimated gross sales value over 10 years at $75,000,000. ZEOX owns 49% of NMC, while the Company's partner and shareholder, Logician Minerals Limited of Hong Kong, owns 51% of NMC. ZEOX Corporation is the operating partner of NMC.
The agreement commences in January 2009 and runs for a period of ten years to January 2019, and includes an option to extend the contract for an additional 10 years to 2029. The customer has requested deliveries commencing in January 2009.
The Palo, Saskatchewan plant's current crude sodium sulphate inventories are sufficient to meet the customer's anticipated requirements for the first year's supply obligations. NMC has upgraded the Palo facilities since it took ownership in September 2007 and plans to increase its workforce as necessary to meet future supply obligations. Current production capacity is estimated at 100,000 tonnes per annum and there is land to expand facilities and capacity.
The sodium sulphate at Palo is produced at purities of 98% to 99%. This purity of sodium sulphate is beneficial to work in Zeox's patented and proprietary products for zeolite-based concretes for oil and gas and construction applications. NMC continues to research other markets for sodium sulphate.
NMC's Palo facility has several strategic advantages. It is located adjacent to national rail lines, enabling the Company to service large volumes of material year round. In addition there are heavy mobile handling equipment, rail lines, mining permits and bonds granted by the Province of Saskatchewan. Other NMC assets include 682 acres of land, mineral leases, buildings, plant and equipment.
For a more complete business and financial profile of the Company, management encourages interested parties to view the Company's documents posted on sedar.com.
On behalf of the Board of Directors
LuVerne E.W. Hogg, President & Chief Executive Officer
Legal Notice Regarding Forward Looking-Statements: This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements in this news release include that we will sell $75,000,000 of sodium sulphate over the next 10 years to one customer; that we have the inventory and capacity to supply the first year of orders; that the assets of Palo facilities have been upgraded and are ready to produce and that these assets will allow NMC to satisfy supply contracts for the potassium sulphate industry. Factors that could cause actual results to be materially different include that our customer is not satisfied with product quality, price or service; that sodium sulphate markets or pricing may not develop or continue as anticipated or that productive capacity may not be large enough to handle market demand. Even if we do sell quantities as anticipated, there is no guarantee that we can do so profitably. Investors are cautioned against placing undue reliance on forward-looking statements. It is not our policy to update forward looking information.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: ZEOX Corporation