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Gold/Mining/Energy : EMR Microwave Technology (EMW.A) -- Ignore unavailable to you. Want to Upgrade?

To: Buckey who wrote (278)	8/18/1999 11:02:00 AM
From: timroy	Read Replies (1) \| Respond to of 397

EMR closes deal Long-awaited Bateman partnership boosts Fredericton firm's credibility, expertise By MICHAEL TUTTON - Telegraph Journal After ten months of protracted negotiations, EMR Microwave Technology has a deal with a giant South Africa mine engineering firm to give the company an infusion of cash and credibility. Yesterday, the Fredericton company, which is developing a technology to remove metals from mining ores using microwaves, released preliminary information on a deal with Bateman International BV, a subsidiary of South Africa's Bateman Project Holdings Inc. The deal involves Bateman in marketing and developing the EMR technology. The precise amount of investment that Bateman will make in EMR has not been publicly released. Jim Tranquilla, EMR president, would only say that "the goal is to have over one million dollars." He added that there is the possibility of the involvement of a second partner in the deal. A Bateman executive will also take a seat on EMR's board of directors. Mr. Tranquilla says that aside from the invention of the microwave method his firm has pioneered, the partnership is the "most important development" in the company's five-year history. It signals to an investment-shy mining industry that the Fredericton technology firm has the blessing of a major engineering company, with $313-million in annual earnings and experience in designing process plants for the mining and petroleum industries. Ken Brunk, Bateman's vice-president and technical director in the United States, described the EMR technology as, "a powerful, even revolutionary approach to the pre-treatment and recovery of gold and other metals from ore that in the past has been difficult and expensive to process." Mr. Tranquilla also says that Bateman has the engineering experience to help his company create a much larger version of the pilot plant it operates in Fredericton. The current microwaving facility is capable of processing 20 tonnes of ore per day, while large mining companies could require a 3,000 tonne per day operation. The length of time between the original announcement of a memorandum of understanding and the agreement had created concern among analysts following EMR's stock, which is traded on the Alberta Stock Exchange. Marc Lalonde, the manager of the Atlantic Equity Fund, which holds 40,000 shares of the company, says, "this company was supposed to have had four announcements in 12 months. And yet it had none." With the stock price hovering around 20 cents, Mr. Lalonde and other analysts are pleased to hear of some positive developments. Long-time EMR follower Jay Taylor, editor of Hard Money Adviser, says, "no matter how you cut it, this partnership is good news. It gives EMR credibility when it goes to try and sell this process to mining majors." But Paul Shibley, a research metallurgist who has evaluated the EMR process for mining giant Placer Dome, cautions, "I don't know if the partnership will make a lot of difference. Most who are interested are making their own evaluation of the process." However, he notes, "It tells you a major engineering company is interested in the technology and that engineering company has experience that is probably useful to EMR and potential clients." Mr. Tranquilla describes the announcement as being like, "the second leg of a three legged stool." He says the final step in EMR's development will be finding a manufacturer willing to invest in an EMR/Bateman processing plant.