TORONTO, ONTARIO--(Marketwire - Oct. 16, 2012) - MagIndustries Corp. ("MagIndustries" or the "Company") (TSX:MAA) is pleased to report that it has entered into a port facility design contract to further the development of its flagship Mengo potash project (the "Project") in the Republic of Congo ("ROC"). The contract is with China Shipbuilding NDRI Engineering Co., Ltd. ("NDRI") and calls for the design of all necessary facilities for the operation of a potash export terminal in the New Port area of Point-Noire, ROC.
This contract is for the full design services for an export facility suited to load potash bulk carriers including a jetty and trestle, a breakwater, a 150,000-tonne storage facility, transfer stations, ancillary facilities and transportation corridors. NDRI will work together with the Changsha Design & Research Institute of the Ministry of Chemical Industry, People's Republic of China ("China"), which is performing overall engineering and design for the Project. NDRI will also provide data necessary for any environmental and social impact assessment requirements. The total price of the contract is approximately US$6.2 million subject to adjustment mechanisms for the US dollar/Chinese Yuan exchange rate.
The Mengo Project is a proposed 1.2 million tonnes per year potash mine and processing plant to be constructed in two modules of 600,000 tonnes per year each. The Mengo Project is located near the village of Mengo, 25 kilometers east of the Atlantic port city of Pointe-Noire, ROC. The Company holds a mining license for a 136 km2 area (the "Mengo License").
China Shipbuilding NDRI Engineering Co., Ltd., of Shanghai, China, was established in May, 1953. It is the comprehensive design and research unit with the largest scale in China's shipbuilding industry and has the status of a "class A" design and research institute.
About MagIndustries Corp.
MagIndustries is a Canadian company whose common shares are listed on the TSX and trades in Canadian currency under the symbol "MAA". The Company has 456,772,463 shares outstanding on an undiluted basis. MagIndustries is focused on the development of its potash assets in the Republic of Congo. More information on the Company is available on its website, www.magindustries.com.
Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.