Zhuhai Oil Energy Plant Now Operational-Increases Biofuel Production Capacity-Biomagnetics Prepares to File Patents
SAN FRANCISCO-- July 21, 2010 (BUSINESS WIRE)--Biomagnetics Diagnostics Corp., (PINK SHEETS: BMGP)a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection, and other innovative technologies, today announced the signing of a Letter of Intent (LOI) with Zhuhai Oil Energy Science and Technology Ltd., an inventor and producer of unique gasoline and diesel biofuel blends, located in the Guangdong Province, China. The acquisition of Zhuhai is the second in a series of planned highly accretive Chinese technology and product acquisitions targeted at a $1.00 share price for Biomagnetics’ common shares.
The Zhuhai plant is now operational. Upgraded biofuel production capacity stands at up to 60 metric tons per hour. This higher level of production has been achieved through the recent installation of several new systems and through the expansion of other plant operations, in order to begin delivery on a previously signed contract to supply cleaner burning biofuels to a local Guangdong electric power station. The current Chinese benchmark price for diesel fuel is currently 6,460 RMB per ton.
“Prior to beginning deliveries of biofuel under the currently signed supply contract, but immediately upon closing of this acquisition, we will be filing several Chinese, United States and international patents on this unique formulation of biofuels. Preparation of the patent documentation has been ongoing,” commented Clayton Hardman, CEO of Biomagnetics. “These filings will allow us to protect this formulation, which has been approximately ten years in the making. What is very exciting for this management team and for shareholders of Biomagnetics is that the Zhuhai operation will be able to begin generating significant revenues shortly after the acquisition is completed and the patents are filed. The plant is already operational and we could begin deliveries over the next few days, however it is imperative for us to first file the Chinese and international patent applications, which we plan to do immediately upon this acquisition closing. It is truly an exciting time for everyone at Biomagnetics and Zhuhai Oil Energy, and for our shareholders.”
While coal remains the primary fuel for electricity production throughout most of China, the situation in Guangdong is very different with the province having built more than 10 million kW of fuel oil power generation over the past two decades to meet electricity demands from the rapidly growing export-oriented manufacturing industry in the Pearl River Delta. Environmental pressures are forcing a rapid change in electricity generation throughout Guangdong with many of these Guangdong fuel oil power plants turning toward natural gas or other cleaner burning products. Zhuhai has already signed one major contract to supply a local power plant with its low carbon footprint fuel blend and it will seek to supply its product to other power plants as additional production capacity is added.
The Company plans to soon announce a conference call to further discuss this and other technology and product acquisitions planned by the Company and to provide a status update on its ongoing relationship with Los Alamos National Security, LLC for the development of the world's first commercially available integrated optical biosensor product for the detection of human and animal pathogens, such as tuberculosis, malaria, HIV/AIDS and cholera.
About Biomagnetics Diagnostics Corp.
Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company. The Company’s revolutionary diagnostic systems, which are based on advanced magnetics, test for any viral or bacterial disease using any body fluid. The Company's technology allows laboratories to perform far more tests in the same amount of time it takes to do a single test. The HTS-MTP platform is designed to detect the actual virus and viral load in body fluids and not just simply screen for the presence of viral antibodies. More information on Biomagnetics Diagnostics Corp. can be seen at www.BiomagneticsBMGP.com.
Joe Noel, 925-922-2560
Biomagnetics Diagnostics Corp.