TAMPA, Fla., July 24, 2012 /PRNewswire/ -- MagneGas Corporation ("MagneGas" or the "Company") (OTCBB: MNGA), the developer of a technology that converts liquid waste into a hydrogen-based metal working fuel and natural gas alternative, announced today that Clear Sky Energy S.A. de C.V. ("CSE"), has agreed to purchase a 300Kw MagneGas refinery for $2.7 million, plus 5% royalties based on MagneGas related gross revenues, and will serve as a distributor of MagneGas™ fuel in Mexico and Latin America. The initial contract with CSE calls for Definitive Agreements with a corresponding $865,000 payment to be executed on or before November 1, 2012, with an initial deposit of $100,000 to be paid on or before July 27, 2012 of which $20,000 has already been received. CSE, formed in 2010, focuses on the development and distribution of sustainable, green energy technologies in Mexico.
Under the terms of the agreement, CSE will purchase and install a 300Kw MagneGas refinery at its facility in Monterrey, Mexico. In return, CSE will serve as the exclusive distributor for MagneGas fuel in Mexico and as a non-exclusive distributor in Latin America. CSE also has an option to purchase an additional five 300Kw refineries over the next 5 years.
"We are excited to work with MagneGas and look forward to distributing the company's superior metal cutting fuel throughout Mexico and Latin America," stated Manuel Juan Marcos Gonzalez, President of CSE. "We are impressed with the fuel's ability to cut metal effectively, quickly and in an environmentally-friendly way and look forward to working with the company to expand its international customer base."
"MagneGas is thrilled to build a strategic partnership with CSE as we continue to execute on the second phase of our growth strategy and expand our geographic reach," commented Ermanno Santilli, CEO of MagneGas Corporation. "Mexico and Latin America provide a tremendous a growth opportunity for our business as their economies develop and their needs for metal cutting grow."
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About Clear Sky Energy S.A. de C.V.
CSE, formed in 2010, focuses on the development and distribution of sustainable, green energy technologies in Mexico. In particular, Clear Sky Energy maintains a focus on helping the energy industry in Mexico dispose of traditionally challenging waste and waste material in ways that are significantly more environmentally conscious and friendly when compared to current methods. CSE and its principals have deep ties to the energy industry in Mexico. CSE will be a leader in assisting companies deal responsibly with newly adopted regulations aimed at better protecting citizens and the environment in Mexico and Latin America.
About MagneGas Corporation
Founded in 2007, Tampa-based MagneGas Corporation (OTC BB: MNGA) is the producer of MagneGas™, a natural gas alternative and metal working fuel that can be made from certain industrial, municipal, agricultural and military liquid wastes following the receipt of appropriate governmental permits.
The Company's patented Plasma Arc Flow™ process gasifies liquid waste, creating a clean burning hydrogen based fuel that is essentially interchangeable with natural gas. MagneGas™ can be used for metal working, cooking, heating, powering bi fuel automobiles and more. For more information on MagneGas, please visit the Company's website at www.magnegas.com.
This press release contains forward-looking statements as defined within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events, including our ability to raise capital, or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The Company is currently using new antifreeze, vegetable oil and ethylene glycol to produce fuel until proper permits to process used liquid waste have been obtained.
For a discussion of these risks and uncertainties, please see our filings with the Securities and Exchange Commission. Our public filings with the SEC are available from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.
SOURCE MagneGas Corporation