Things are HEATING up for Kafus. Another press release for all.
NEWS RELEASE
FOR IMMEDIATE RELEASE
JUNE 19, 1998
KAFUS SUBSIDIARY PLANS TO COMMENCE FULL SCALE PRODUCTION OF ANIMAL FEED
SUPPLEMENTS FROM ORGANIC WASTE IN FLORIDA
Boston, MA: (American Stock Exchange, symbol: KS, Frankfurt and Berlin
Stock Exchanges, symbol: KAF and The Canadian Dealing Network, symbol:
KFSS) Kafus is pleased to advise that it has agreed on behalf of its 90%
owned organic waste processing subsidiary, Camden Agro Systems Inc. (CASI)
to upgrade CASI's existing pilot processing facility at Bartow, Florida,
to full commercial production.
Kafus' decision is based on CASI's recent execution of an exclusive
marketing distribution agreement with Miracle Feeds of Canada Ltd., whereby
CASI received, subject to certain conditions, a "guarantee to purchase" of
all animal feed supplements produced by CASI at its Bartow processing
facility and other planned North American locations.
CASI has been operating an organic waste processing facility at Bartow
since February 1998. During this time CASI has secured supply agreements
with local organic waste generators, and produced a variety of high
quality, value added animal feed blends for analysis and subsequent sale.
Organic wastes used in the production of animal feed products include
cheese whey, ice cream, bakery waste and shrimp shells. CASI management
anticipate expanding the Bartow facility from a single shift operation to a
two shift operation by November 2, 1998. At that time, the Bartow plant
should be capable of producing in excess of 22,000 short tons per year of
dry animal feed supplement for sale to Miracle Feeds of Canada Ltd.
During the past two years, CASI has also been working on a priority basis
on the development of organic based fertilizers from a range of animal
wastes. The current methods of disposal of animal manures are causing
serious environmental problems globally, particularly in the nitrate
pollution of local water tables.
In April 1998, CASI completed a four month Research and Development program
with Agriculture and Agri-Food Canada to test a slow release function for
organic fertilizers blends prepared by CASI, from poultry and hog manures
and other ingredients. As a result, CASI succeeded in creating what they
believe is a proprietary slow release mechanism for organic fertilizers
which will permit CASI to market its trade mark brands "Verdant organic"
fertilizers as a replacement commodity to existing inorganic fertilizer
products. In Kafus' opinion this represents a significant milestone and
global opportunity.
It is anticipated that a further four to six months of independent research
under the auspices of Agricultural and Agri-Food Canada will be required to
complete all remaining development work, prior to commencing large scale,
North American commercial introduction of the CASI organic fertilizer
product line.
In anticipation, Kafus' project development team is working with CASI
management in the identification of future sites for multiple animal waste
processing facilities in strategic Canadian and USA locations. This is in
addition to CASI's ongoing development plan for Abbotsford, British Columbia.
Currently CASI is involved in a range of other development initiatives,
these include:
CASI Development in the Caribbean: In March 1998, senior representatives
from CASI participated in a 10 day trade mission to Trinidad and Tobago, in
order to identify organic waste processing opportunities in the Caribbean.
The trade mission included visits to hog and poultry processing facilities,
the Carib Brewery, the Solid Waste Management Company Limited, Caroni
(1975) Limited Distillery, the Ministry of Agriculture, Land and Marine
Resources and others. A number preliminary agreements were signed, and
commitments were made for a return visit to finalize Organic Waste Supply
and Joint Venture Agreements. CASI has submitted a proposal to the
Government of Canada to assist selected Caribbean countries in implementing
their sustainable development strategies. While in the Caribbean, CASI
representative also visited senior government officials of St. Vincent and
the Grenadines, to identify processing opportunities for that country's
brewers grain, banana, flour mill and other wastes.
Government Contract Award: On 08 April 1998, CASI was awarded a contract
by the Provincial Government of Prince Edward Island to conduct an Enhanced
Waste Utilization study for the Province. The purpose of the study is to
analyse the commercial viability of converting potato cullage, and steam
peel waste, whey and fish processing waste into animal feed blends. In the
conduct of the study, CASI will employ a unique and comprehensive seven (7)
phased approach to quantify commercial viability. Phase 1 is currently
well underway with respect to quantifying organic waste volumes and
availability. Finally, CASI has secured the "right of first refusal" to
establish controlling interest in any waste processing opportunity that may
arise directly from the content of the feasibility study, for a period of
one year following the completion of the study.
As previously reported, Kafus plans to transfer its Camden Agro interest to
Signet Industries Ltd. an Alberta Stock Exchange listed company currently
controlled by Kafus. A final submission for required regulatory approval
is currently underway. Under its existing agreement with Signet and
subject to approval by The Alberta Stock Exchange, Kafus would receive
additional Signet common shares in return for its capitalized cost base of
acquiring Camden Agro, together with additional common and/or convertible
preference shares for the funding of the current CASI development up to a
maximum of CDN$2 million. Kafus management believes that its control of
Camden Agro through its control of Signet will enable multiple plant
financing to be raised without direct dilution to Kafus shareholders.
Kafus is rapidly moving towards its corporate objective of becoming a
global low-cost producer of commodity type products from alternative
materials including post consumer and agricultural waste.
Shares Outstanding: 24.2 million
Direct all enquiries to:
KAFUS ENVIRONMENTAL INDUSTRIES
INVESTOR RELATIONS DEPARTMENT
Toll Free (888) 333-5377 Tel (604) 602-1981 Fax (604) 685-2426
E-mail: kafus@direct.ca Website: www.kafus.com
CAMDEN AGRO SYSTEMS INC. (CASI)
BOB NOVITSKY
Tel: 613-738-0887
US Investor Relations Inquiries:
DESMOND TOWEY & ASSOCIATES
Desmond Towey or Bob Schu
Tel: (212) 888-7600 Fax: (212) 888-7686
or:
Tony Francel, PBS
Tel: 941-698-8920
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