RN.V GONNA TRIPLE ON THIS NEWS !!!!!Press Release
RIO Nevada Signs Purchase and Sale Agreement, Concludes Acquisition of Technology/Chemical Corporation
CALGARY, ALBERTA--RIO Nevada Energy Inc. is pleased to announce the signing of the Purchase and Sale Agreement between RIO Nevada Energy Inc. (``Purchaser'') and Concorde Technologies Inc. (``Vendor'') of Odessa, Texas.
The Vendor, Concorde Technologies Inc., is an established manufacturing and research and development firm based in Odessa, Texas in the business of developing and supplying a wide range of technologies, process applications and a line of chemicals.
The purchase price of $3.5 million USD is comprised of a $100,000 USD cash payment, a promissory note in the amount of $900,000 USD, a $1.0 million USD debenture, 6.0 million common shares of RIO Nevada at a demand price per share of $0.35 CDN (subject to a performance escrow agreement with Canadian Venture Exchange) and a 2 to 5 percent sliding scale royalty on net chemical sales.
The promissory note is to be repaid on a quarterly basis in equal amounts of $225,000 USD commencing December 1, 2000 with the debenture to be repaid over a 5 year term commencing one year after closing at a rate of $200,000 USD per year. Both the promissory note and debenture are non interest bearing.
Shares of RIO Nevada will be distributed to principals of the Vendor in the following amounts (Mr. Ignacio Cisneros - 1.8 million, Ms. Sandra Deusler - 1.6 million, Mr. Alfred Boyd - 1.4 million and Mr. Mark Bublitz - 1.2 million).
A finder's fee of 200,000 common shares of RIO Nevada at a price of $0.35 CDN (subject to a performance escrow agreement) was paid in consideration to Mr. Clark Southoff.
The acquisition includes all the assets of the Vendor comprised of the line of treating chemicals, intellectual property, patents and related trademarks and processes. In addition, RIO Nevada acquires all properties and manufacturing facilities located in Odessa, Texas.
RIO Nevada also acquires a 50 percent interest in Tierra Industries Inc., a joint venture with P.T. Ryorongka of Indonesia. The Indonesian Corporation has entered into a licensing agreement with the Vendor to market the proprietary ``Permian Super Fuel'' process for a $1.0 million USD fee for the marketing rights.
The primary property of the Vendor is a patent on the composition and application of MSS-58. MSS-58 forms the base for additional patent applications and applications of chemicals, processes and intellectual property developed by the Vendor.
Product developments originating from MSS-58 have created the following processes and products applicable to several industries:
1. Permian Super Fuel (PSF), gasoline and diesel
2. Flue Gas/stack Greenhouse gas emission reduction technologies
3. Silamine-Amine Multi-Stage Gas Sweetening Process
4. Cava Chem Tool and process for oilwells
5. PCB destruction process: portable and low cost
6. Environmental remediation processes: Hydrocarbon removal in soil
washing
7. Oil Seed extraction processes and feed upgrades
8. Oil Sand tailing remediation technologies
9. Oil Shale extraction chemicals
The Vendor has also developed the Permian Super Fuel process. The PSF process modifies raw fuels to be more efficient in combustion. This means less unburned hydrocarbons and carbon monoxide in the exhaust pipe in vehicles. The net result is more efficient use of fuel and less pollution.
The technical merits of the PSF process are highlighted as follows:
1. Reduce process energy costs by 5-10%
2. Cleaner burning fuel products
3. Lower emissions of unburnt hydrocarbons and carbon monoxide
4. Reduced Sulfur content in fuels
5. Reduced corrosion in piping and vessels
6. Ease of retrofit to older refineries: Modular units ease installation
Key to the PSF process is that it does not require MTBE (methyl-tertiary-butyl-ether) or Ethanol to achieve the desired emission standards laid down by the various government agencies throughout the world. This has major implications regarding the Kyoto accords on reduction of greenhouse gases (GHG). Preliminary investigation of the PSF process indicates that it would qualify for the generation of emission credits.
The opportunities of the PSF process include an environmentally friendly vehicle fuel which is economically competitive plus is a replacement for two-stroke engine oil. These applications are very advantageous especially in developing countries where the two-stroke engine is the standard transport engine.
RIO Nevada is a junior Canadian controlled energy Corporation based in Calgary, Alberta, Canada.
RIO Nevada Energy Inc.'s common shares trade on the Canadian Venture Exchange (CDNX) under the symbol ``RN''.
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