Augusta Executes Memorandum of Understanding With Mitsubishi

TORONTO, ONTARIO–(Marketwired – June 16, 2016) – Augusta Industries Inc. (the “Corporation”) (TSX VENTURE:AAO) is pleased to announce that, further to its press release of April 21, 2016, FOX-TEK Canada Inc. (“FOX-TEK”), the Corporation’s wholly owned subsidiary, entered into a Memorandum of Understanding (“MOU”) with Mitsubishi Heavy Industries America, Inc. (“Mitsubishi”) an affiliate company of Mitsubishi Heavy Industries Ltd based in Japan.
Pursuant to the terms of the MOU, FOX-TEK will be partnering with Mitsubishi with respect to its plans to design and build a commercial grade pilot monitoring system for waste water treatment.
Upon the successful completion of the pilot program, FOX-TEK will enter into a definitive licensing agreement with Mitsubishi for its DMAT software solution. The approximate value of the licensing agreement will be USD$1,250,000 over the term of the agreement. The terms of the licensing agreement will be agreed to by the parties upon the completion of the pilot program.
“We believe that both Mitsubishi and FOX-TEK will bring to clients a technology that will have a great potential,” said Allen Lone, Chief Executive Officer of Augusta Industries Inc. “We are thrilled to move forward with such a project, this being one of many other potential opportunities that both companies will explore further.”
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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.