Rival Secures USD $137 Million Financing for TRU Process Development
HENDERSON, Nev., Dec. 11, 2009 (GLOBE NEWSWIRE) -- Rival Technologies Inc. (OTCBB:RVTI - News) is pleased to announce it has signed the financing agreement previously announced November 11th 2009 with no dilution to existing shareholders.
The investment group led by Bridge Gap Konsult based in Calgary, Canada will provide project financing as detailed below over the course of the next 36 months. Funds from the non-recourse agreement will be advanced over three stages for continuous development of the TRU process from pilot to production.
The first stage, USD $6 million, is assigned to engineer, fabricate and operate, the previously announced one Barrel per day (Bpd), continuous feed pilot plant. Upon successful completion of Stage One, a further USD $16 million will be provided to engineer, fabricate and operate a Stage Two demonstration plant. The company is excited about the future prospects for the TRU process and will immediately begin to explore options available to it for securing a farm-in or strategic industry partner for the minimum fifteen Bpd demonstration facility.
Stage Three funding of USD $115 million will be provided to engineer, fabricate and operate a minimum 10,000 Bpd production facility with a yet to be named industry partner.
While there can be no certainty of reaching the full production stage at this point, the company believes there is a reasonable likelihood that each stage will be successfully concluded in the timeframe envisaged. Projected revenues, based upon an anticipated trailing royalty model, are estimated at USD $7 million per annum for each 10,000 Bpd increment. Further announcements will be made in due course as each stage proceeds.
Worldwide, oil sand and heavy oil resources are massive. In Canada alone producers have a total reserve of 1.3 trillion barrels of heavy oil that will need to be developed over the next 40 years. Before moving from the field to the refinery the resource will need to be upgraded. These producers represent the prime market for the TRU process technology.
Douglas B. Thomas
President & CEO |
