CALGARY, ALBERTA -- (Marketwire) -- 02/19/13 -- West Mountain Capital Corporation (TSX VENTURE: WMT) (the "Corporation" or "WMT") announces that it will conduct a non-brokered private placement of up to a maximum of $1,500,000 aggregate principal amount of 8.0% unsecured convertible debentures (the "Debentures") due and payable on the date which is 24 months from the date of issuance of the Debentures. The conversion price of the Debentures is $0.35 per common share during the term of the Debenture. It is not anticipated that any new insiders will be created, nor that any change of control will occur, as a result of the private placement. Insiders of the Corporation have indicated they will participate in the proposed private placement. The Debentures and the underlying common shares of the Corporation issued on conversion shall be subject to a statutory four-month hold period from the date of closing. Net proceeds of the private placement will be used for general working capital purposes.
Completion of the financing is subject to receipt all normal regulatory approvals, including approval of the TSX Venture.
Update on Chinese Operations
In China, the Corporation is focused on the thermal treatment of contaminated soil and the recovery of oil from oily sludge waste. WMT operates through three commercial ventures, each with a Chinese business partner that has established relationships within that market. Pursuant to these ventures, the Corporation is currently generating revenue treating contaminated soil, completing the build-out of a oily sludge recovery facility and commencing the construction of a second oily sludge recovery facility.
WMT - NIES Strategic Agreement
The Corporation is party to a Strategic Cooperation Agreement with the Nanjing Institute of Environmental Sciences ("NIES") of the State Environmental Protection Agency, Ministry of Environmental Protection for the People's Republic of China. Under this agreement the parties mutually funded the construction, commissioning and testing of one Thermal Phase Separation ("TPS") unit in China for treating contaminated soil. Testing was successfully completed in June 2012 and subsequently NIES introduced WMT to Hangzhou Dadi Environmental Co. Ltd. ("Dadi"). In October 2012 WMT entered into a subcontract arrangement with Dadi to treat 33,000 tonnes of pesticide-contaminated soil as a commercial demonstration of the TPS technology.
The project is located in the city of Hangzhou. Dadi's contract for the entire project involves the remediation of approximately 160,000 tonnes of contaminated soil, Dadi may offer the Corporation additional volumes of soil to treat before or following the treatment of the initial 33,000 tonnes. The Corporation commenced work on the project in December 2012 and it is expected that the project will conclude on or about December 31, 2013.
Dadi is a highly recognized environmental remediation contractor in China and is currently in discussions with the Corporation to jointly pursue additional remediation projects throughout Zhejiang and Jiangsu provinces.
WMT - Nahai Joint Venture
The Corporation is a 50:50 equity partner in a Sino-foreign joint venture Corporation with Zhoushan Nahai Solid Waste Central Disposal Co. Ltd. ("Nahai") of Zhoushan, Zhejiang Province, China. The WMT-Nahai Joint Venture is designing, engineering, constructing and will operate an oily sludge waste recovery facility in Zhoushan, Zhejiang Province to receive, process and recover oil from oily sludge waste generated from oil storage operations and oil tanker cleaning activities in that region. The facility has a processing capacity of 50,000 tonnes of oily sludge per year, is currently under construction and is expected to commence commercial operations by Q4, 2013.
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