Sep 11 2007
Energem Resources Inc ("Energem" or "the Company") is pleased to announce the acquisition of a 70% controlling interest in a methanol blending project in China ("the Project").
The Project comprises the acquisition of proprietary intellectual property whereby an additive which, when blended with methanol, converts methanol into a clean burning fuel used in various large scale heating applications in Beijing. The blended methanol produced by the Project creates an alternative fuel which is cost effective and less pollutive than those commonly utilised in similar heating applications. The Company has acquired this intellectual property from its developers, who will retain a 30% equity interest in the Project and continue to assist in the management of the Project's manufacturing, marketing, development and roll out. The developers of the additive have conducted a number of years research and development and have had the additive independently tested through the Chinese Academy of Sciences. The Chinese Government fully supports all projects that create pollution reducing fuels.
In consideration for the 70% interest, the Company has agreed to fund the manufacturing, marketing and roll-out of the Project in Beijing for an amount of up to US$4.0 million which, it is expected by management, will be sufficient to bring the Project into commercial production and positive cash flow by mid 2008.