BioNitrogen plans new fertilizer plant
Apr. 2, 2012. Miami, FL - BioNitrogen Corp., a developer of revolutionary patent-pending technology for converting renewable and abundant biomass waste into high-nitrogen urea and urea fertilizer, is pleased to announce it has signed a Letter of Intent to construct the company's second planned fertilizer plant at the Levelland Industrial Rail Park, Levelland, Texas.
The LOI is between The Levelland Economic Development Corporation (LEDC) and BioNitrogen and summarizes the understanding that BioNitrogen plans to construct a new manufacturing plant to use local organic matter as an input to produce urea fertilizer for the region.
The cost of the plant is estimated to be $65 million and will employ at least 35 full-time employees once fully operational.
The LOI outlines that the LEDC will convey to the Company Lot Number 1 of the Levelland Industrial Rail Park in Levelland, Texas (approximately 24.5 acres) for the purchase price of $850,000.00 (market value), being equivalent to $35,000.00 per acre x 24.5 acres. Based on the projected capital investment and employment levels, the LEDC will provide the land at no cost provided that all due diligence is met in accordance with LEDC requirements.
During the coming weeks, the LEDC will work with BioNitrogen to finalize all due diligence requirements including the review of the business plan, technical feasibility, market analysis, financing models, operations and compliance with all state and federal regulatory requirements.
Both parties understand that time is of the essence and are working to complete a definitive contract and all necessary and supporting documentation in the coming weeks. The LEDC also will work with BioNitrogen to examine further possible economic incentives.
"The economic development and benefit to our local community and farmers is very exciting, and we are grateful for the opportunity and look forward to assisting you in locating your fertilizer plant in our community." states Mr. Chris Roberts, President of the LEDC.
Dr. Terry Collins, President and CEO of BioNitrogen adds "Mr. Roberts and his team and been very helpful in assisting us develop our second plant here in Texas. Our team is excited to get to work and move through the due diligence and complete all the necessary paperwork in the coming days and weeks. This is a very exciting next step for our company and its valued shareholders".
About Levelland Economic Development Corporation
Levelland's economic development efforts are led by the Levelland Economic Development Corporation, a public non-profit economic development corporation created under Section 4a of the Texas Development Corporation Act. Under the leadership of the Levelland Economic Development Corporation, the LEDC works closely with several other entities to play major roles in the economic development efforts in assisting existing and new businesses in generating jobs and economic activity in Levelland. For more information please visit www.golevelland.com.
About BioNitrogen Corp.
BioNitrogen is an entrepreneurial, American company that has been established to design and to build fully operational, turnkey manufacturing facilities to produce urea. BioNitrogen is undertaking these efforts in response to the challenges presented by an ever expanding world population, a rapidly increased need for food production, and an awareness of the fragility of the world's environment. Given all these challenges and the promise that the Company's products possess to effectively respond to these challenges, the Company believes that it is positioned at the right place and time. BioNitrogen's modular plant designs are capable of manufacturing 15 tons of urea fertilizer per hour for a total annual production of approximately 124,200 tons per plant.
BioNitrogen is headquartered in Miami, Florida, USA and trades on the over-the-counter pink current information tier under the stock symbol BION. Learn more at http://www.BioNitrogen.com/Invest_Today/.
Additional information can be found on BioNitrogen's website at www.BioNitrogen.com.