First
American Scientific Corporation Announces Signing of Joint Venture Agreement to
Introduce KDS Technology in Brazil, Uruguay and Argentina
Tuesday April
18, 9:00 am ET
VANCOUVER,
BC--(MARKET WIRE)--Apr 18, 2006 -- Brian Nichols, President of First American
Scientific Corp. (OTC BB:FASC.OB
- News) is pleased to
announce the signing of an agreement in principle to form a joint venture to be
named First American Scientific Brazil Ltda., with South American Bio-Energy
Corp Ltd of Uruguay and Bruno Industrial Ltda of Brazil www.bruno.com.br for the manufacture,
marketing, and operation of KDS equipment in Brazil, Uruguay and Argentina.
The first
installation of a fully operational KDS system is planned to commence operation
in September 2006 as part of a new $US 50 million sugar refinery and ethanol
plant in Sao Paulo state. The KDS will process diverted waste bagasse to a
pelletizer and bagging house to create "bagasse pellets" which will
be burned in conventional pellet burners to create green energy. The initial
target will be to deliver 300,000 tonnes of pellets in the local region, then
to look beyond the borders of South America to Europe where an order for
1,000,000 tonnes of pellets is anticipated.
Brazil, the fourth largest
country in the world, has an abundant supply of biomass (bagasse) that is
eliminated during the refining of sugar cane. With the KDS, we can now capture
overflow waste material and efficiently convert it to a high BTU biomass
pellets. Our Brazilian partner has identified 80 sugar refining operations in
Brazil alone that will be suitable candidates for our system.
According to Mr. Nichols,
"This ties in nicely with our recent announcement of the signing of a
distribution agreement with EnergyCabin www.energycabin.com
to market their pellet burning equipment in North and South America, and also
opens up opportunities in Asia where there is an abundant supply of biomass
that could be pelletized and sold through our joint venture partners in
Malaysia, Korea or Japan."
Under the proposed joint
venture, in addition to receiving a royalty on all equipment sold and 50% of
all profits, FASC will receive a royalty on every ton of pellets produced in
Brazil. FASC's contribution to FASBrazil will be the exclusive license to the
KDS while the Brazilian partners must provide all required startup capital until
FASB achieves positive cash flow.
This is the fifth license
agreement signed by FASC around the globe with installations in Malaysia,
Japan, Korea, Europe, North America and now South America. Please refer to our
web site for further details. www.fasc.net
Certain information and
statements included in this release constitute forward-looking statements
within the meaning of the Federal Private Securities Litigation Reform Act.
ON BEHALF OF THE BOARD OF
DIRECTORS
C. Kantonen, Chairman
Contact:
Contact:
Call Market Smart Communications
toll free: 1-877-261-4466
Source: First American Scientific Corporation