Wastech, Inc. Closes Purchase of West Virginia Mineral Rights
CHARLESTON, S.C., May 17, 2006 (PRIMEZONE via COMTEX) -- Wastech, Inc. (Pink Sheets:WTCH) (the "Company") today is pleased to announce that on April 14, 2006, it successfully closed on its recently announced purchase of approximately 44,000 acres of subsurface coal, coal bed methane and all other mineral rights under enriched acreage throughout various counties in West Virginia, as well as exactly 5,898.49 acres of oil and gas reserves in Fayette County, West Virginia.
As previously announced, the Company acquired the specific mineral rights in direct concert with Environmental Energy Services, Inc. (Pink Sheets:EESV). Aside from the capital infusion and expertise, the strategic partnership was created to potentially provide a "leasing ground" for future drilling prospects of EESV, as well as its future energy projects, alternate or otherwise, contemplated for the State of West Virginia and abroad. Notwithstanding the above, the Company and EESV are in discussions with other energy companies concerning the acquired rights for alternate leases and business opportunities.
Pursuant to the closing agreement, the Company paid the various parties, exclusive of legal and state recording fees, 11,750,000 shares Wastech common stock, $770,000 in cash, $4,980,000 in promissory notes, $980,000 of which is payable on or before August 25th, 2006, yet $2,000,000 of which that may be converted into additional common stock for cash consideration in the amount of $175,000 on such date. The agreements through assignment consist of the acquisition of 341 properties throughout 24 counties in West Virginia. The mineral rights are owned in fee, without lien, by the Company's wholly owned subsidiary, Wastech of West Virginia, Inc.
In West Virginia it is estimated that 99% of the generated electricity comes from coal, utilizing within the state approximately 14 coal-fired electric generating facilities, amounting to $3.5 Billion in gross state product generated as a result of coal. At current market conditions, state estimates would equate the acquired mineral reserves in excess of $1 Billion to the Company's subsidiary.
The Company plans to file the above transaction and documents thereto with the Security and exchange Commission ("SEC") on Form 8-K and suggests that this press release should be read in conjunction with other submissions on Form 8-K and other public documents filed with the SEC, all of which may be viewed online at www.sec.gov.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release which are not historical facts may be "forward-looking statements" that involve risks and uncertainties which could cause actual results to differ materially from those currently anticipated. For example, statements that describe Wastech's hopes, plans, objectives, goals, intentions, or expectations are forward-looking statements. The forward-looking statements made herein are only made as of the date of this news release. Numerous factors, many of which are beyond Wastech's control, will affect actual results. Wastech undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. This news release should be read in conjunction with Wastech's annual report on Form 10-KSB for the fiscal years ended December 31, 2002, 2001 and other filings with the U.S. Securities and Exchange Commission.