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Gold/Mining/Energy : Kafus Environmental (KS) -- Ignore unavailable to you. Want to Upgrade?

To: Peter G. Mackey who wrote (118)	9/2/1998 9:39:00 PM
From: Peter G. Mackey	Respond to of 229

Another news release. aymondville Chronicle and Willacy County News Vol. 78 No. 33 Wednesday, August 19th, 1998 ROAD TO KENAF $750,000 STATE GRANT WILL BUILD ROAD TO KENAF PAPER MILL SITE The Texas Dept. of Economic Development has awarded Willacy County a grant of $750,000 to build a two mile paved road from State Hwy. 186 to the proposed site of a $150 million newsprint mill, according to County Judge Simon Salinas. The new all weather heavy duty road will allow building materials and equipment to be moved to the site by truck. Later the road will allow the transport of newsprint rolls out of the area on their way to major Texas newspapers. The exisiting dirt road was a serious obstacle to the construction of the plant. Judge Salinas predicts that the newsprint mill will have twice the economic impact that the State Jail has had on the county. Construction of the road could begin by the end of the year, according to county grantsman, Carlos Mondragon. On July 30, Judge Salinas and Raymondville city manager, Eleazar "Yogi" Garcia, were notified by the state that the Kenaf Industries of South Texas project has qualified as a five year Enterprise Zone Project that will allow abatement of state sales and use taxes paid on qualifying items because of the creation of 30 new jobs. When the mill is complete, more than 200 jobs are expected. ---------------------------------------------------------------------------- ---------- Kenaf Industries is a subsidiary of Kafus Environmental Industries (KS:AMEX) Furthur information on Kenaf and other subsidiaries ca

To: Peter G. Mackey who wrote (118)	9/2/1998 9:42:00 PM
From: Peter G. Mackey	Read Replies (1) \| Respond to of 229

A newer news release. NEWS RELEASE AUGUST 25, 1998 KAFUS CLOSES ON US$12.5 MILLION CREDIT FACILITY FROM ENRON .... WILL FUND BUY BACK OF KAFUS CONVERTIBLE PREFERENCE SHARES Kafus Environmental Industries, Ltd. (American Stock Exchange, symbol: KS, Frankfurt and Berlin Stock Exchanges, symbol: KAF) Kafus Environmental Industries is pleased to announce the closing of a US$12.5 million loan facility from Enron Capital & Trade Resources Corp. (ECT), a subsidiary of Enron Corp. "The ECT loan is significant to our shareholders because of its non-dilutive nature," quoted Mike McCabe, President of Kafus. "Apart from certain warrants granted to ECT, Kafus is not required to issue any further common or convertible preference shares at this time," added Mr. McCabe. A portion of the proceeds of the loan facility were used immediately to redeem the balance of the Series II Convertible Preference Shares from Olympus Securities, LTD and NP Partners for approximately $4.6 million and the Series VI and Series VII Convertible Preference Shares from KA Investments LLC for approximately $1.3 million. The remainder will be used to provide general working capital required by Kafus in its current development program. ECT intends to provide additional capital upon the finalization of terms and conditions for a stock repurchase program subject to regulatory and Kafus board approval. The investment was made by means of a promissory note bearing interest at the rate of 14% per annum until the maturity date of February 18, 2000. In the event the Note is not repaid at maturity, the Note is convertible at ECT's option into shares of Common Stock of Kafus at a conversion price of US$4.00 per share, subject to certain anti-dilution adjustments. ECT also acquired warrants to purchase 750,000 shares of Kafus Common Stock at an exercise price of US$4.00 per share. ECT received an additional 795,000 warrants which can be terminated by Kafus once the company meets certain performance milestones including loan repayment. "Kafus' securing of the ECT loan was made possible by the pledging of collateral by The Samarac Corporation, Kafus' controlling shareholder, owned and managed by Mr. Ken Swaisland, Kafus' Chairman," stated Mr. McCabe. "The loan facility will give Kafus the funds necessary to complete the first phase of its global development program and realize its true market value. This marks the beginning of Kafus' transformation from a development company to an operating company," added Mr. McCabe. Kafus believes the ECT loan facility will help insulate the company from any short-term adverse market conditions by removing the correlation between Kafus' trading price and the company's ability to fund corporate development. 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. Direct all enquiries to: KAFUS ENVIRONMENTAL INDUSTRIES Todd Hilditch, Manager Investor Relations Toll Free (888) 333-5377 Tel (604) 602-1981 Fax (604) 685-2426 E-mail: kafus@direct.ca Website: www.kafus.com or: Tony Francel, PBS Tel: 941-698-8920