MagneGas Corporation announced today that they have completed the MagneGas™ Refinery that was purchased by China partner DDI Industry International. The original announcement of the sale was issued in a press release March of this year and the progress has move forwardly rapidly since. DDI representatives are scheduled to arrive at the MagneGas corporate headquarters in Tampa, FL today to begin testing and training on the unit. Upon successful training and inspection of the System, DDI will assume ownership of the patented Plasma ArchFlow™ Refinery and pay MagneGas the remaining $950,000 balance of the contract. This payment is slated to happen by August 31, 2010.
This purchase is part of the overall business plan that has been discussed in various press releases by MNGA throughout this year. Based in Beijing, China, DDI Industry International signed a Letter of Intent (“LOI”) to acquire the exclusive MagneGas Technology and manufacturing rights for the Greater China market (Phase 2 of the business strategy). As compensation, DDI would directly invest $2.0 MM in MagneGas Corp. DDI would create a new China-based Joint Venture company (“MagneGas China”) to house and administer the rights. DDI would seek to take this Joint Venture Company public in the Asian market in the future. Per the LOI, DDI will grant to MagneGas Corp. 20% of MagneGas China, giving MagneGas Corporation and its investors a significant and perpetual share of China market operations. MagneGas CEO, Dr. Ruggero Santilli, will receive a full voting seat on the MagneGas China Board of Directors.
MagneGas President Richard Connelly stated, “We are pleased to announce that we have comfortably hit our internal deadline, and that the China Refinery is now finished and ready for testing.” Mr. Connelly continued, “This is significant in that it demonstrates our ability to manufacture a very complex machine on time and to a customer’s precise specifications. This both gives future customers confidence in our operations, and also helps us predict timely revenue recognition.”
The Plasma ArchFlow Refinery gasifies liquid waste, creating a clean burning fuel that is essentially interchangeable with natural gas, but with lower greenhouse gas emissions. MagneGas™ can be used for metal cutting, cooking, heating or powering bi fuel automobiles. When used as a gas for metal cutting, MagneGas, a GREEN fuel, has been praised for delivering cuts cleaner and faster with a narrower kerf, less slag, no top edge rollover and a smaller heat affected zone.
Shares of MNGA are trading at $.08 today (no change for the day). More information on MagneGas Corporation, its products and the investment opportunity it presents can be found on the Company’s website at www.magnegas.com.
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