Hollund Industrial Marine Negotiates First Concession Surveyors' Results Prove Targeted Latin American Concession to be Viable Opportunity
BLAINE, Wash., May 6, 2013 /PRNewswire/ -- Hollund Industrial Marine, Inc. (PINKSHEETS: HIMR) ("Hollund" or the "Company") announced today that the company has officially entered into negotiations with the appropriate authorities to secure HIMR's first commercial concession in Latin America.
"These negotiations mark the beginning of real revenue opportunities for HIMR," stated Peter Meier, President of Hollund. "This is the closest we have been to securing a concession since adjusting our business model and we are confident, should negotiations conclude favorably, we may be entering into our first concession agreement."
Negotiations commenced last week when the surveyor's report [on targeted lake – Latin America] revealed the lake as a viable source for underwater wood harvesting. Management indicates however that the volume of timber identified is rather low in relation to the production speed of the TigerLynk. This would suggest the estimated work time on the lake would be a much shorter duration than the 3 to 5 year concession the company would generally seek.
Mr. Meier continued, "The efficiency of the TigerLynk transforms what would be a two year job for a team of divers into a roughly six month operation for HIMR. This affords us the ability to quickly harvest a concession, maximize capital resources and move to the next project. Also, given recent and promising efforts of our South American Project Development Team, we strongly believe we will begin the formal steps of securing a second concession before the close of the next quarter."
Management also indicated the estimated concession value, which would usually be derived based purely on volume, could be worth a great deal more than typically expected. This is based on reports that the targeted lake may contain a much more valuable tree species than what the Company's concession estimates are generally based on. In this case, HIMR will look for North Cal to "assist us with determining the 'real' value of the concession once the tree species are confirmed," said Meier.
Meier concluded, "This may be our first concession of 2013, but we strongly believe, not the only one. Knowing this brings us great excitement as we can clearly see our vision unfolding this year; anticipating additional closing opportunities by year end. The value in these projects will likely prove tremendous to shareholder equity and overall Company value."
About Hollund Industrial Marine, Inc.
Headquartered in Blaine, WA, Hollund Industrial Marine Inc. (Pink Sheets: HIMR) seeks to align the interests of businesses, communities, utilities and governments by offering an integrated business model for underwater forest management. Hollund's model – including resource and needs assessment, permitting, environmental and project planning, logging, milling, product branding and sales adds value for our shareholders, our partners and reservoir based communities.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "ACT"). In particular, when used in the preceding discussion, the words "estimated," "believe," "optimistic," "expect," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in forward-looking statements. Such risks and uncertainties include, but are not limited to, unfavorable market conditions, increased competition, limited working capital, and failure to implement business strategies, actions by regulatory agencies, and other risks.
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SOURCE Hollund Industrial Marine, Inc.