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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
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
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. "
Latin America provide a tremendous a growth opportunity for our business as their economies develop and their needs for metal cutting grow."