SOURCE: Nuclear Solutions, Inc.
September 26, 2007 10:25 ET
Nuclear Solutions, Inc. Subsidiary Fuel Frontiers, Inc. Receives Two Million Dollar Commitment to Fund Coal-to-Diesel Fuel Plant in Muhlenberg County, Kentucky
WASHINGTON, DC--(Marketwire - September 26, 2007) - Fuel Frontiers, Inc. (FFI), a subsidiary of
Nuclear Solutions, Inc. (OTCBB: NSOL), today announced it has received a
two million dollar ($2,000,000) commitment to fund initial project
development for a CTL (Coal-To-Liquid) diesel fuel production facility to
be sited in Muhlenberg County, Kentucky.
The two million dollar funding commitment is in connection with an
exclusive CTL diesel fuel project development agreement between FFI and
Kentucky Fuel Associates, Inc. (KFA), a Kentucky-based corporation
established specifically to develop coal-based diesel fuel production
sites. The company received a non-refundable initial deposit of $200,000
and a commitment to fund the balance of the two million dollars by October
30, 2007.
Under the terms of the July 2007 agreement, KFA agrees to provide two
million dollars per site in initial development funding. The funding will
be applied towards all expenses normally incurred for CTL diesel project
development including financing to closure, engineering, management, legal
and operations in conjunction with preliminary site development services by
KFA. In consideration for the two million dollar funding per site, KFA will
receive 7% of the annual net pre-tax income of each jointly developed CTL
diesel fuel facility and 2.5% equity interest in the first CTL diesel fuel
facility developed by FFI and KFA. Additionally, KFA will have the
exclusive right to develop CTL diesel fuel facilities with FFI in the state
of Kentucky and a conditional first right of refusal to develop CTL diesel
fuel facilities in the remainder of the United States.
"We believe this is an excellent opportunity to establish a precedent for
initial development funding for FFI projects which does not involve the
sale of equity in the parent company, Nuclear Solutions, Inc. Also, in
light of the current worldwide market conditions for crude oil, we are
eager to continue our entry into the mature and robust market for CTL
sourced ultra-clean diesel fuel," said Patrick Herda, CEO of Nuclear
Solutions, Inc., the parent company of Fuel Frontiers, Inc.
About Fuel Frontiers, Inc.
FFI plans to employ a commercially proven plasma gasification system
designed by Westinghouse Plasma Corporation coupled to commercially
available Fischer-Tropsch (FT) gas-to-liquids (GTL) diesel fuel production
systems for its coal to ultra-clean diesel production facilities.
FFI is a wholly owned subsidiary company of Nuclear Solutions, Inc. (OTCBB: NSOL). FFI reports its operations and financial results on a consolidated
basis within Nuclear Solutions, Inc.'s public filings. Visit
www.fuelfrontiers.com for additional information. For further information
on Nuclear Solutions, Inc. please contact an authorized representative of
the company for further information. The only authorized representatives of
the company are: Patrick Herda, Ken Faith, Jack Young and Fred Frisco and
the only authorized investor relations telephone number is (202) 580-8330.
The company is not responsible for information transmitted by an
unauthorized third party or through calls made to or from an unauthorized
telephone number. Please feel free to contact the CEO, Patrick Herda,
directly with any questions at (202) 470-2664.
DISCLAIMER:
The matters discussed in this press release are forward-looking statements
that involve a number of risks and uncertainties such as our plans,
objectives, expectations, and intentions. You can identify these
forward-looking statements by our use of words such as "proposed,"
"initially," "to develop," "potentially," "anticipation," "believe," "plans
to," "is considering," "projected," "currently in negotiations," "potential
site," "to be constructed," "will provide," "will be," "is intended,"
"seems to be," "opportunity," "intends," "when," "preliminary," "eager to
continue," "exploring," "possibly," "developing," "initial," "planned,"
"possibility," "seek," "endeavor," "planned," or other similar words or
phrases. Some of these statements include discussions regarding our future
business strategy and our ability to generate revenue, income and cash
flow.
With regards to forward-looking statements on the proposed CTL diesel fuel
facility, FFI has never constructed or operated a facility like this before
and there are inherent risks associated with the establishment of such new
operations. There could be unexpected problems or delays in the funding,
construction and operation of the facility. There is no guarantee that we
will be successful in raising the capital required for this project. While
we believe that the appropriate technologies for Coal-To-Diesel conversion
are commercially available, we cannot guarantee that commercially available
technologies will be suitable under all circumstances for producing
synthetic or GTL fuels in the proposed Fuel Frontiers, Inc. facility.
Additionally, KFA is a new corporation established in 2007 and has a
limited operating history. While management believes that KFA has or can
acquire the resources to provide funding under the terms of the agreement,
no guarantee can be made that difficulties or delays could occur in
receiving full funding from KFA and that all funding efforts will be
successful. The Company intends to secure funding required for the
CTL-fuel project primarily through structured finance debt instruments
and/or limited equity financing.
Overall, actual future results for Nuclear Solutions, Inc., and its
subsidiary Future Fuels, Inc., could differ significantly from statements
contained in the press release. Factors that could adversely affect actual
results and performance include, among others, the companies' limited
operating history, dependence on key management, financing requirements,
technical difficulties commercializing any projects, government regulation,
technological change, and competition. In any event, undue reliance should
not be placed on any forward-looking statements, which apply only as of the
date of this press release. Additionally, patent pending status or
licensing does not guarantee that a patent will issue or that the
technology will be commercially successful. Accordingly, reference should
be made to Nuclear Solutions, Inc.'s periodic filings with the U.S.
Securities and Exchange Commission, also available through the Web site at
www.nuclearsolutions.com.