|
Latest
News
August 4, 2008
Mantra Venture Group Ltd. ("Mantra" - OTCBB: MVTG - FSE: 5MV) is pleased to announce that it has entered into an agreement in principle for a joint venture agreement with Northwind Ethanol Ltd. ("Northwind") to produce fuel ethanol using their proprietary starch and cellulose technology. The final agreement is undergoing final review by Mantra and Northwind's legal counsel. The joint venture will be carried out through Mantra's wholly-owned subsidiary, Mantra NextGen Power Inc. ("NextGen"). According to the terms of the joint venture agreement, Mantra will own 51% of NextGen and Northwind will own 49%.
NextGen has also acquired the exclusive North American license from Northwind to produce cellulosic ethanol, ethanol derived from wood and agricultural wastes, using an exclusive proprietary technology. This technology promises to be much more economic, practical and clean, than ethanol from conventional corn processing. NextGen also has the right to purchase additional worldwide licenses at an additional cost. This high efficiency, low energy demand process will reduce ethanol production costs by more than 1/3.
NextGen's management team and Board of Directors has also been implemented, with Larry Kristof of Mantra to act as President, Fred Enga of Northwind will act as C.E.O., Dennis Petke of Mantra will act as Secretary and Brian Currie of Northwind to act as Treasurer and C.F.O. These four gentlemen will also serve on NextGen's Board of Directors, with a fifth director to be chosen by mutual consent of Mantra and Northwind. Now that the management of NextGen is in place, they will focus their attention on raising capital in order to finance NextGen's first plant.
Fred Enga, Northwind's President and C.E.O., commented, "Our two companies have finalized the deal that will see cellulosic ethanol come to commercialization. This will allow NextGen to bring this new, exciting, clean technology to the marketplace."
Larry Kristof, Mantra's President and C.E.O. added, "This joint venture is an important step for both NextGen and Mantra. Ethanol produced from a source other than corn, an important food staple, is in high demand. NextGen is poised to meet that high demand and enter this burgeoning market very quickly - we hope to break ground on our first 20 million gallon per year plant by the end of this year."
-----------------
July 31, 2008
Mantra Venture Group, a publicly-traded investment firm, is in negotiations with Northwind to finance a new cellulosic ethanol venture called NextGen, which Northwind projects producing ethanol for less than $1 per gallon. The financing for NextGen has not yet been disclosed, but Northwind CFO Brian Currie's says that at market prices of $2.20 per gallon for ethanol, far below current prices, the joint venture would yield a return on investment of between 60 and 110 percent.
Currie and company president Fred Enga started Vancouver-based Northwind seven years ago to commercialize the Gaian Starch Process, a low-heat process that breaks down cellulosic feedstocks into fermented sugar. The company says costs for the process are driven below industry norms through efficient construction and production processes. The company retrofits decommissioned mills and distilleries, a plentiful commodity in British Columbia, and utilizing their existing fermentation equipment and infrastructure to significantly lower capital costs.
"Nobody else wants these things," Currie says. "As long as there's rail access, we can produce ethanol and ship it out at a low cost." According to Currie, the venture's inaugural plant, located in British Columbia with production capacity of 25 million gallons annually, will see $5 million in reduced capital costs from retrofitting. The project will be online in six to twelve months.
The installation will be self-sufficient, generating carbon neutral energy through a closed loop system that captures and uses waste products as energy sources. Mantra President Larry Kristoff claims the plant will generate a surplus of four megawatts annually for sale back to the grid. The company's output primarily is slated for the Canadian market, with multiple distribution deals signed and one with Canada's Husky Energy in the works.
|
