MTI Purchases Manufacturing & Licensing Rights for HGS
MISSISSAUGA, ON, April 14 /PRNewswire/ - blutip Power Technologies™ ("blutip Power") , a division of Hy-Drive Technologies Ltd. (TSXV: HGS) today announced that its mining partner, Mining Technologies International Inc. ("MTI") have agreed to purchase an exclusive Manufacturing & Marketing Rights Agreement for the company's patented Hydrogen Generating System (HGS®).
The Agreement will see MTI pay $2,000,000 to blutip Power™, in quarterly instalments, in exchange for the exclusive manufacturing and global distribution licensing rights for Hy-Drive's Hydrogen Enhanced Diesel Combustion technology - for use with direct-driven rolling equipment applications in the surface mining, underground mining, tunnelling, construction mining and off-highway market sectors.
As a result of this agreement MTI will be licensed to manufacture and supply the current Hy-Drive HGS and all of its associated sub-assemblies, to the worldwide off-road heavy equipment market, as defined above.
"In December we announced our plan to re-organize our channels of distribution to better meet customer needs, as we intended to aggressively expand our product offering. This agreement is another important step of our re-alignment," stated Robert Bucher, President & CEO, Hy-Drive Technologies Ltd. "For many years MTI has been very supportive of Hy-Drive and its H2 technology. This commitment is yet another indication of their willingness to work alongside us; providing us the necessary capital to advance our technology with them and expand into new, exciting markets," he continued.
MTI will have the "first right-of-refusal" on all potential heavy-equipment customer inquiries as defined within the agreement. In the event MTI is not interested in pursuing the opportunity, blutip Power™ will have the ability to execute through its other channels of distribution.
"As I have been on a personal crusade to find innovative ways to reduce emissions for our miners in the underground mining environment, I have been a big supporter of Hy-Drive and its hydrogen technology," said Robert Lipic, President & CEO of MTI. "This agreement makes a lot of sense. It enables each of us to do what we do best to meet the needs of the heavy equipment market; MTI knows how to manufacture; leaving blutip to focus on delivering the next break-through in emissions reduction solutions," Mr. Lipic went on to say.
Not included in the license is blutip Power's proprietary controller software, which will be supplied directly to MTI by blutip Power, for each application of the HGS product. blutip Power retains all rights and ownership over all of its intellectual property, manufacturing schematics and product specifications of the Hy-Drive HGS in its entirety.
Under separate agreement, MTI will also act as a distributor for the blutip Power3 Savings Share Program, on a non-exclusive basis, for the diesel power generation market. All future development work between the two companies will be performed on an individual basis with separate terms and conditions.
As previously announced in August 2009, MTI provided Hy-Drive with a $200,000 deposit for the purchase of HGS units; the deposit will be put towards the new agreement purchase price. This Agreement replaces the Marketing & Distribution Agreement signed with MTI in 2006.
About blutip Power
blutip Power, a division of Hy-Drive Technologies Ltd., is a technology company headquartered in Mississauga, Ontario, Canada. The Company has invested in the research and development of hydrogen and control technology resulting in a proprietary, patented and patent-pending hydrogen generating system ("HGS®") and advancement in multi-fuel universal combustion controls. blutip's Hy-Drive HGS enriches the fuel-air charge of an internal combustion engine with hydrogen produced through electrolysis and uses its proprietary software controls to improve combustion of the fuel-air mixture. The result is improved fuel economy and reduced opacity (particulates).
Mining Technologies International Inc. (MTI) is Canadian owned and operates four manufacturing facilities producing a wide range of advanced mining equipment including: hydraulic drill jumbos, LHD loaders, dump trucks, shaft drilling jumbos, long hole jumbos, in-the-hole (ITH) drilling rigs, computerized drill rigs, automated ITH drills with rod handlers, rail haulage systems (chutes, rail cars and dump stations), mine locomotives, buckets, bucket lip assemblies, bucket wear parts and low profile crushing plants as well as custom designed equipment for specific underground requirements.
MTI also manufactures a full complement of high quality drill string components for drilling large diameter raises, blast holes, exploration holes, and ITH applications. MTI is the result of the merger of several companies now operating as divisions, with names familiar to the mining industry: Drillex International of Canada, Continuous Mining Systems, LHD Equipment, John Clark Inc., Drillex U.S. Inc., CMS Pacific, and Drilco Australia PTY.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with the Company's business, and the economic environment in which the business operates. Forward-looking statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements including but not limited to, statements about future development of blutip Power's/Hy-Drive's products, commercial production in 2011, future working capital requirements, and validation of blutip Power's/Hy-Drive's products, and can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", "thinks", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved" and similar expressions to the extent that they relate to the Company or its management. These forward-looking statements are not historical facts, but reflect the Company's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectation.
Although blutip Power/Hy-Drive has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. blutip Power/Hy-Drive does not undertake to update any forward-looking information that is incorporated by reference herein, except in accordance with applicable securities laws.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Hy-Drive Technologies Ltd.