By LISA HRABLUK - The Telegraph Journal Nov 26,98
SAINT JOHN - Fredericton-based EMR Microwave Corporation crossed
a major hurdle yesterday in its drive to bring the company's innovative technology to the mining industry.
The advance came in the form of a memorandum of understanding with a
well-known international engineering firm to market and commercialize
EMR's new mining methods.
That company, South African-based Bateman Project Holdings Limited,
should deliver credibility and security to potential investors in the technology, which has yet to be proven in the field, says EMR founder and CEO Dr.James Tranquilla.
"They've demonstrated they can take technology and commercialize it," he said of Bateman, which has a world-wide reputation for its engineering and project management work.
"It makes a big difference to have the vice-president of Bateman sitting at the table with me. "They [potential customers] accept that Bateman wouldn't be playing around with something doubtful."
EMR systems use microwave technology to treat ores. Tests have proven
they can drastically increase yields in gold mining, for instance, thereby increasing profitability. The systems can also help extract gold from bodies of ore currently considered too complex to mine.
The company is also working on a similar technology to extract oil from underground reserves.It is still at the experimental stage.
Assuming the memorandum of understanding produces a final agreement,
Bateman will make a "significant" investment in EMR through private
placements, Mr. Tranquilla said.
A team from EMR, led by Dr. Tranquilla, will travel to Bateman's Denver office next week to finalize details of the MOU, which was signed last week.
It states that EMR will retain ownership of its intellectual property already developed and it will be the sole owner of any intellectual property developed in the course of the commercialization of the technology.
In return for its financial contribution, Bateman will become the preferred engineering supplier for EMR's mineral pretreatment technology.
EMR will derive revenues from licencing agreements and royalties it will require from companies using EMR systems.
Until now the process has been limited to laboratory work and a pilot plant at EMR's facility in Lincoln.
Now, with the financial backing of Bateman, Dr. Tranquilla hopes to have a demonstration plant working by next summer. Both Bateman and EMR agree it is a top priority to get a commercial plant in operation, Mr. Tranquilla said.
The final contract should be signed the end of February, at which time it will become clear exactly how much money Bateman plans to invest in the project.
"That will be indicative of how strongly Bateman feels the potential of this technology would be. That would be a nice number to see," said Marc Lalonde, the vice-president of Louisbourg Investments of Moncton.
Mr. Lalonde is the fund manager for the Atlantic Equity Fund, which owns stock in many companies based in the Maritimes, including EMR.
"It is a positive step forward for the company in that now they have a strong company with engineering background to put forth their technology and hopefully that will result in contracts and sales."
As part of its plans to market its technology, EMR will continue to search for a manufacturing partner to build future plants. EMR is traded on the Alberta Stock Exchange.
[Online Subscription Form]
[Tell us what you think - comments, suggestions and letters to
the editor]
[New Brunswick Publishing Home Page]
[Telegraph Journal Front Page] |
