SEATTLE, WA, Aug. 4 /PRNewswire-FirstCall/ -- Mantra Venture Group Ltd. ("Mantra" - OTCBB: MVTG - FSE: 5MV) is pleased to announce that it has entered into an agreement in principle for a joint venture agreement with Northwind Ethanol Ltd. ("Northwind") to produce fuel ethanol using their proprietary starch and cellulose technology. The final agreement is undergoing final review by Mantra and Northwind's legal counsel. The joint venture will be carried out through Mantra's wholly-owned subsidiary, Mantra NextGen Power Inc. ("NextGen"). According to the terms of the joint venture agreement, Mantra will own 51% of NextGen and Northwind will own 49%.
NextGen has also acquired the exclusive North American license from Northwind to produce cellulosic ethanol, ethanol derived from wood and agricultural wastes, using an exclusive proprietary technology. This technology promises to be much more economic, practical and clean, than ethanol from conventional corn processing. NextGen also has the right to purchase additional worldwide licenses at an additional cost. This high efficiency, low energy demand process will reduce ethanol production costs by more than 1/3.
NextGen's management team and Board of Directors has also been implemented, with Larry Kristof of Mantra to act as President, Fred Enga of Northwind will act as C.E.O., Dennis Petke of Mantra will act as Secretary and Brian Currie of Northwind to act as Treasurer and C.F.O. These four gentlemen will also serve on NextGen's Board of Directors, with a fifth director to be chosen by mutual consent of Mantra and Northwind. Now that the management of NextGen is in place, they will focus their attention on raising capital in order to finance NextGen's first plant.
Fred Enga, Northwind's President and C.E.O., commented, "Our two companies have finalized the deal that will see cellulosic ethanol come to commercialization. This will allow NextGen to bring this new, exciting, clean technology to the marketplace."
Larry Kristof, Mantra's President and C.E.O. added, "This joint venture is an important step for both NextGen and Mantra. Ethanol produced from a source other than corn, an important food staple, is in high demand. NextGen is poised to meet that high demand and enter this burgeoning market very quickly - we hope to break ground on our first 20 million gallon per year plant by the end of this year."
About Mantra:
Mantra, through its group of sustainable energy, carbon reduction and consumer product subsidiaries, is active in the green technology marketplace with an innovative, multi-faceted approach focused on profitability through sustainability. By aggressively seeking out new technologies and innovating solutions for a cleaner earth for everyone, Mantra intends to provide a highly profitable, socially and environmentally responsible investment for its shareholders.
Mantra is a public company quoted on the OTC BB under the symbol MVTG and on the Frankfurt Stock Exchange under the symbol 5MV. For more information please visit us at http://www.mantraenergy.com/.
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Forward-Looking Statements:
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Mantra Venture Group's filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
