TORONTO, ONTARIO–(Marketwired – July 7, 2015) – Augusta Industries Inc. (the “Corporation”) (TSX VENTURE:AAO), a developer and marketer of patented non-intrusive sensing systems, is pleased to announce that its wholly-owned subsidiary Fox-Tek Canada Inc. (“Fox-Tek”) has sent a technical team to install one of Fox-Tek’s largest electric field mapping system (“EFM System”) to monitor a key asset in one of Enbridge Inc.’s (“Enbridge”) Canadian facilities.
The EFM System, consisting of a 200-pin sensor array, is a custom system that is three times the size of Fox-Tek’s standard system. The EFM System will be used in the monitoring of potential internal wall loss around the girth weld of a 30 inch pipe. This continuous system will wirelessly send data to Fox-Tek’s data vault where the data will be analyzed and presented to the Enbridge via a secure web portal. Over time, the data will be correlated with other data to better understand the integrity of the monitored location and, more importantly, to validate the existing mitigation program.
“This EFM System is the second system of its kind supplied to Enbridge for monitoring all or portions of a large girth weld and this success is an example of the Corporation’s history of being able to provide custom solutions to its clients, both domestically and internationally,” commented Allen Lone, President and CEO of the Corporation.
The Corporation’s mandate has been to focus on the international market to attract new clients and focus on large projects. The Corporation is working towards establishing a strong presence in the United States and is reviewing its options on hoe to accomplish this goal. The intention is to set up a sales and business development office in Houston, Texas by recruiting local talent from the industry in general and specifically the space of integrity.
The Corporation would also like to announce that it intends to raise gross proceeds of up to $1 million through a non-brokered private placement of up to 20 million units (the “Units”) of the Company at a price of $0.05 per Unit. Each Unit will consist of one (1) common share and one (1) common share purchase warrant (“Warrant”). Each Warrant will entitle the holder to purchase one common share at a price of $0.07 for a period of three years from date of issuance. A finder’s fee may be paid by the Company in connection with the private placement.
The non-brokered private placement is subject to all necessary regulatory approvals. The securities being issued in the private placement will be subject to a four-month hold period in accordance with applicable Canadian securities laws. The Corporation intends to use the net proceeds for general working capital.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. (“Marcon”) and Fox Tek, the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Augusta Industries Inc.
(905) 338-2323 Ext 22