Consolidated Water Co. Ltd. Completes Land Purchases for Proposed Mexico Project
May 22 2014 - 8:28AM
Marketwired
Consolidated Water Co. Ltd. Completes Land Purchases for Proposed
Mexico Project
GEORGE TOWN, GRAND CAYMAN, CAYMAN ISLANDS--(Marketwired - May
22, 2014) - Consolidated Water Co. Ltd. (NASDAQ: CWCO)
("Consolidated Water" or "the Company"), which develops and
operates seawater desalination plants and water distribution
systems in areas of the world where naturally occurring supplies of
potable water are scarce or nonexistent, today reported that it had
completed, through its 99.9% owned Mexico subsidiary N.S.C. Agua
S.A de C.V. ("NSC"), the purchase of the two parcels of land
required for its proposed Mexico desalination plant.
As previously disclosed, the Company, through NSC, is pursuing a
project encompassing the construction and operation of a 100
million gallon per day seawater reverse osmosis desalination plant
to be located in Rosarito Beach, Baja California, Mexico and an
accompanying pipeline to deliver water to the Mexican potable water
system and the U.S. border. If NSC is successful in obtaining
the water purchase and other agreements and approvals required and
can complete the project, the Company expects to retain a minority
ownership in the project and participate in the operation of the
plant and pipeline system.
In 2011, NSC entered into a purchase contract with unrelated
parties, pursuant to which NSC would acquire 8.1 hectares of land
("First Land Parcel") in Rosarito Beach, Mexico, which constituted
a portion of the land on which the proposed plant would be
constructed. In 2012, NSC obtained an extension of this
purchase contract through May 15, 2014 in exchange for prepayments
of (i) $500,000 paid at signing of the extension and (ii) a further
$500,000 paid in May 2013. In 2013, NSC entered into a second
purchase contract with unrelated parties, pursuant to which NSC
would acquire an additional 12 hectares of land ("Second Land
Parcel") adjacent to the First Land Parcel for $12 million, of
which $2 million was paid upon execution of the second purchase
contract. The First Land Parcel and Second Land Parcel
constitute all of the land the Company believes will be required
for the proposed plant.
On May 15, 2014, NSC completed the purchases of the First Land
Parcel and the Second Land Parcel by paying the remaining balances
due on these parcels of $6.98 million and $10 million,
respectively.
"These land purchases represent a significant milestone in the
progress of our proposed Mexico desalination project," commented
Mr. Rick McTaggart, the Company's Chief Executive Officer. "We
believe the site we have acquired represents the best possible
location for a northern Baja, California desalination plant as it
is adjacent to a pre-existing source of feed water for the plant
and is of sufficient size to accommodate a 100 million gallon per
day facility. The total purchase price we paid of just over $20
million for this site demonstrates our confidence in the viability
of the project and our commitment to its completion."
CWCO-G
About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates seawater
desalination plants and water distribution systems in areas of the
world where naturally occurring supplies of potable water are
scarce or nonexistent. The Company operates water production and/or
distribution facilities in the Cayman Islands, Belize, the British
Virgin Islands, The Commonwealth of The Bahamas, and Bali,
Indonesia.
Consolidated Water Co. Ltd. is headquartered in George Town,
Grand Cayman, in the Cayman Islands. The Company's ordinary
(common) stock is traded on the NASDAQ Global Select Market under
the symbol "CWCO". Additional information on the Company is
available on its website at http://www.cwco.com.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe", "estimate", "project", "intend", "expect", "should" or
similar expressions. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements inherently involve
risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Factors that
would cause or contribute to such differences include, but are not
limited to, continued acceptance of the Company's products and
services in the marketplace, changes in its relationships with the
governments of the jurisdictions in which it operates, the outcome
of its negotiations with the Cayman government regarding a new
license agreement for its retail operations, its ability to
successfully secure contracts for water projects, including the
projects under development in Baja California, Mexico and Bali,
Indonesia, its ability to develop and operate such projects
profitably, and its ability to manage growth and other risks
detailed in the Company's periodic report filings with the
Securities and Exchange Commission ("SEC").
By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this release.
For further information, please contact: Frederick W. McTaggart
President and CEO (345) 945-4277 or David W. Sasnett Executive Vice
President and CFO (954) 509-8200 info@cwco.com or RJ Falkner &
Company, Inc. Investor Relations Counsel (800) 377-9893
info@rjfalkner.com
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