CORP. / M.L. Cass Petroleum Corp Announces Agreement
Date: 7/22/98 10:31:13 AM
Stock Symbol: MLO.T
M.L. Cass Petroleum Corporation (the "Company") announced today
the Company and its affiliate, PT. Suvarna Bhumi
Persada ("SBP") have executed a "Term Sheet of EPC Contract"
("Term Sheet") and an "Agreement for Engineering Services"
("Agreement") with Lentjes Energietechnik GmbH ("Lentjes") of
Germany for the construction of the 2*55 MegaWatt coal-fired
electrical power station (the "Station") at Pomalaa,
South Sulawesi, Indonesia. Construction of the Station is
expected to commence in the 4th quarter of 1998.
SBP has contracted with PT. Aneka Tambang ("ANTAM"), Indonesia's
largest producer of ferronickel, to construct the U.S. $130
million Station as part of ANTAM's U.S. $375 million
expansion of its existing ferronickel smelter at Pomalaa. The
smelter expansion, scheduled for completion by June, 2000, will
increase ANTAM's ferronickel smelter capacity from 11,000
tonnes to 24,000 tonnes per annum.
SBP owns PT. Pomalaa Power Company ("PowerCo"), an Indonesian
company with an exclusive license to build the Station. Pursuant
to an agreement dated February 27, 1998, the Company has
contracted to acquire the shares of PowerCo for 10,715,000 shares
of the Company and U.S. $1 million cash. Closing will occur 5
days following receipt of Canadian regulatory approval, estimated
to be during the month of September, 1998.
The Term Sheet provides for Lentjes to construct the Station for
the turn-key, lump sum amount of U.S. $98 million. The Term Sheet
is subject to approval by the Company's proposed project
lenders and finalization of definitive EPC contract terms. The
Agreement provides for Lentjes to commence U.S. $700,000 of
required engineering work immediately, an amount which will
offset against the engineering component included in the Term
Sheet's total cost of U.S. $98 million. Lentjes has also agreed
to invest U.S. $5 million in a Company-sponsored U.S. $35-40
million private placement of common shares.
Lentjes is part of the LURGI Group of Germany. The LURGI Group
companies engineer, supply and build turn-key plants and plant
units worldwide and had consolidated revenues of DM 4 billion for
the 1996/97 fiscal year-end. The LURGI Group companies are 100%
owned by Metallgesellschaft AG, one of Germany's largest
conglomerates, active in the fields of trading, chemicals,
production, engineering and building technologies.
Effective immediately, the Board of Directors have appointed
Ronald P. Bourgeois as President and Robert R. Rooney as
Secretary to the Company. M.L. Cass Petroleum Corporation is a
publicly held Company in Calgary, Canada and trades on the
Toronto Stock Exchange under the symbol "MLO.T". |
