Blue Aquifer signs binding water offtake agreement in Cape Verde 5 January 2012
Blue Aquifer LDA has signed a $95m binding water offtake agreement with the municipality of Santa Catarina in the Republic of Cape Verde, to supply drinking water in the area.
Under the terms of the agreement, the company has agreed to deliver 1,400,000 cubic metres of potable water a year to Santa Catarina for 25 years.
The firm will purchase all equipment and Advanced SeaWater Reverse Osmosis system from the Water Resources Group, and will manage and operate the water plant.
Water Resources Group will also be entitled to 49% of the net income from Blue Aquifer from water sales for the 25 year duration of the contract, as well as provide a service and maintenance contract.
The installation of Advanced SeaWater Reverse Osmosis system is expected to be complete within one year.
Francisco Fernandes Tavares, president of the Santa Catarina municipal council, said that area has a serious water deficiency
"I am pleased that Blue Aquifer, a locally controlled Water Supply Company, has been successful with their proposal to supply us with water for the next 25 years," he said. "Their relationship with the Water Resources Group has given them a leadership position in this country."
Water Resources Group CEO Brian Harcourt added that the contract reinforces the firm's business model as outlined in the company's prospectus.
"We expect that other municipalities in the Cape Verde Islands will follow the lead of Santa Catarina and take advantage of our low cost, chemical free, community based desalination systems," he said.
Blue Aquifer is a 49% owned joint venture company of Water Resources Group, an Australian company with its main operations located in El Dorado Hills, California, US.
The company is engaged in providing advanced, low-cost, chemical-free, community-based water desalination systems.
The company's main product is its Advanced Seawater Reverse Osmosis desalination plant, incorporating its Plasma Chemical Reactor technology that produces ozone from ambient air for pre-treatment of water in place of chemicals and chlorine.
"Francisco Fernandes Tavares, president of the Santa Catarina municipal council, said that area has a serious water deficiency
"I am pleased that Blue Aquifer, a locally controlled Water Supply Company, has been successful with their proposal to supply us with water for the next 25 years," he said. "Their relationship with the Water Resources Group has given them a leadership position in this country."
Water Resources Group CEO Brian Harcourt added that the contract reinforces the firm's business model as outlined in the company's prospectus."
My chat with Brian.
After speaking to Brian last month he was very hopeful/positive of further expansion in Cape Verde, let alone all the other irons WRG has out there in the fire, so to speak.
CG
WRG Price at posting:
9.3¢ Sentiment: LT Buy Disclosure: Held
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