Press Release
December 6, 2011
Methes Energies Provides Sombra Project Update
New York, December 6, 2011 – Methes Energies International Ltd. (the "Company") is pleased to report excellent progress in its wholly-owned subsidiary, Methes Energies Canada Inc. ("Methes"), about its Sombra facility located in Sombra, Ontario, Canada.
Methes Energies Canada Inc. is rapidly progressing on the project to complete its Sombra facility, where the company expects to start production in the first quarter of 2012. The facility is being set up to produce 13 Million gallons of biodiesel per year (50 MLY) using Methes' own technology, the Denami 3000 biodiesel processor. The manufacturing of the two Denami 3000s is taking place in Mississauga, Ontario, and the company is pleased with its efficient progress. Delivery of the first components of the biodiesel processors are expected in January 2012. Methes Energies Canada Inc. is believed to be the first company in several years to be adding a substantial amount of biodiesel to the current overall Canadian production capacity.
In Sombra, Methes currently employs 10 full-time and 3 part-time employees, as well as several local contractors. The company is proud to be hiring local people from Sombra, Wallaceburg, Port Lambton and surrounding areas. Methes expects to hire 5 to 8 additional employees over the next 90 days. Additionally, Methes is sourcing from local merchants wherever possible, and is receiving a warm welcome from the community. Purchases and rentals have included day-to-day consumables, short and long term rentals of heavy equipment, structural steel, electrical and plumbing supplies, aggregates, concrete, engineering, fuels, tools, and training.
Methes Energies International Ltd. is also pleased to announce that most of the funding for the Sombra project has been received from a private placement, which was closed recently. Under this recent private placement, over $ 3.7M USD was raised at a price of $ 2.00 USD per share. The financing was completed by the Company and has been subscribed to by a small group of existing shareholders, as well as strategic investors, both significantly increasing the Company's value and assisting this one with its future growth plans.
"Things are progressing quickly and efficiently at Methes. The Sombra project is on track and within budget. Our recent private offering went really well, allowing us to move forward according to plan. I am very thankful for the support of our shareholders and proud of our team members at Methes Canada, which now consists of 27 employees", said Michel G. Laporte, president of Methes Energies International Ltd.
About Methes Energies International Ltd. (“Methes International”)
Through its two wholly-owned subsidiaries - Methes Energies Canada Inc. and Methes Energies USA Ltd. - Methes Energies International Ltd. stands as a leader in the biodiesel arena with its innovative and efficient processes that are delivered to its clientele in easy turn-key solutions. These biodiesel solutions are designed for heavy users of biodiesel and diesel fuels, traditional diesel and biodiesel fuel distributors, large scale biodiesel producers, as well as entrepreneurs wishing to start a business in a dynamic sector producing and marketing their own biodiesel.
In 2007, Methes Energy Inc. introduced the Denami 600. This state-of-the-art design is the industry's first compact, fully automated continuous flow biodiesel processor that offers the flexibility of using a wide variety of feedstock options. We believe that the Denami 600 positions itself as the most reliable and cost effective method of producing quality top grade B100 biodiesel fuel, which meets or exceeds current ASTM standards. The Denami 600 can produce a total of 1.3 million gallons (5 million liters) per year. Additionally, the Denami 600 is one of the only commercially available fully automated compact units on the market today. Finally, Methes Energies provides its customers with an efficiency of scale, reliability and independence from the traditional petroleum business sector. More information can be found at www.methes.com or contact pr@methes.com.
Forward-looking Statements: This news release contains forward-looking statements related to the future financial condition and results of operations of Methes. These statements are based on current expectations and estimates about the biodiesel markets and industry in which Methes operates and management's beliefs and assumptions regarding these markets. These statements are subject to important risks and uncertainties which are difficult to predict and assumptions which may prove to be inaccurate. Some of the factors which could cause results or events to differ materially from current expectations include but are not limited to: general economic conditions, market or business conditions; changing competitive environment; changing regulatory conditions or requirements; changing technology; and success in implementing productivity initiatives. Some of these factors are largely beyond the control of Methes. Should any factor impact Methes in an unexpected manner, or should assumptions underlying the forward-looking statements prove incorrect, the actual results or events may differ materially from the results or events predicted. All of the forward-looking statements made in this document are qualified by these cautionary statements, and there can be no assurance that the results or developments anticipated by Methes will be realized or, even if substantially realized, that they will have the expected consequences for Methes. Readers should not place undue reliance on any forward-looking statements. Further, Methes disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other occurrence.
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