TORONTO, ONTARIO–(Marketwired – Sept. 8, 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 entered into a service contract (the “Contract”) with an oil and gas exploration and production company with assets and operations in North America, Africa, Europe and South America. The Contract has an aggregate value of $528,000 over a 5 year term.
Pursuant to the Contract, the Corporation will deploy 5 electric field mapping corrosion monitoring systems (the “EFM Systems”) across the client’s assets in Canada. The client will pay a recurring fee to the Corporation to access the data gathered by the EFM Systems. The client has the ability to extend the term of the Contract based on their specific needs and requirements.
“The Contract represents a benchmark for the Corporation,” said Allen Lone, President of the Corporation. “The Contract represents a new recurring revenue model for the Corporation. In addition, the contract is from a new client and not from an existing client of the Corporation. This sale is a validation of the efforts of the Corporation in expanding its sales efforts to new clients. The Corporation is currently in discussions with several new clients regarding similar service revenue recurring model.”
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