News Release.
EARTHWORKS ARRANGES 100% PROJECT FINANCING
FOR CORTINA PROJECT
Earthworks Industries Inc. (the “Company”) has signed a Letter of Intent with Cortina Landfill Company and North Bay Corporation which amends the agreement dated April 16, 2007. It principally provides that:
1. North Bay/CLC will now provide 100% of the required funding to build the Cortina Landfill Project (“Project”) in California and bring it to the commencement of business operations. In the April, 2007 agreement the commitment by North Bay is only to provide the first $12,000,000 of financing - with all financing required above that amount to be the 50% responsibility of each of North Bay and the Company.
2. North Bay will provide advances of $150,000 per quarter to the Company, from January 1, 2008, until the completion of the Closing by CLC of the purchase of 50%, for $4 million, of the shares of the Company’s California subsidiary, Cortina Integrated Waste Management Inc. (“CIWM”) - which is the owner of the Project.
3. In consideration of the additional project financing being provided, North Bay/CLC have been granted an extension of the deadline for the Closing of the purchase of the 50% of the CIWM shares from April 30, 2008 to the earlier of December 31, 2009 or 14 days after the date of the commencement of commercial operations of the Project.
In light of the advanced nature of regulatory and technical work required and the substantial funding that North Bay has provided to date, in excess of $1 million, the extension of the Closing deadline has been agreed to subject to final documentation and execution by all the parties.
David Atkinson, CEO stated: “We have achieved a major milestone in the further advancement of the project towards operation while most significantly arranging 100% of the capital costs of the project. Management is extremely pleased with the relationship that has been forged with North Bay over the past several months and the experience they bring to the Project.”
All money references above are to United States dollars.
EARTHWORKS INDUSTRIES INC.
Per:
David B. Atkinson
Chief Executive Officer
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