Trading Symbol: MCV
TORONTO, Nov. 1 /CNW/ - McVicar Resources Inc. ("McVicar") is pleased to
announce that its Chinese subsidiary, Zhejiang Hongbo Chemical Co. Ltd.
("Hongbo") has reached a letter of understanding with a major European
pharmaceutical company for the purchase of its intermediate chemicals used in
anti-Alzheimer's drugs. The order was placed following a one year trial period
of the product carried out by the pharmaceutical company. The new order is
placed for 50 tonnes of the intermediate chemical which is valued at
10 million RMB (approximately US$1.4 million), and is to be delivered in 2008.
Orders for subsequent years are expected to increase each year until
150 tonnes per year at a value of approximately 30 million RMB.
Alzheimer's disease is a common disease among the elderly. The number of
Alzheimer's cases being reported is increasing mainly as a result of the
large, aging segment of the global population. The intermediate chemical for
anti-Alzheimer's drugs is one of the earliest products developed by Hongbo in
collaboration with the Shanghai Institute of Organic Chemistry.
"This multiyear order from an international pharmaceutical company is
demonstrative of the high standard of our products. It is the direct result of
the collaborative efforts between ourselves and one of China's top Chemical
Institutes, the Shanghai Institute of Organic Chemistry", commented Dr. Gang
Chai, President & CEO of McVicar, "We see tremendous opportunities for our
products as a result of customer satisfaction and market demand."
On Sept. 7, 2007, McVicar Resources Inc. announced that Hongbo had signed
a long-term supply contract with Dupont valued at US$20 million. This contract
followed an order from Dupont in June 2007, valued at US$1.78 million. More
recently, on Sept. 20, 2007, Hongbo received an order valued at US$800,000
from a major South Korean company. On Oct. 30, 2007, Hongbo received an
initial order valued at US $700,000 for its anti-AIDS intermediate chemical
from another South Korean company.
Zhejiang Hongbo Chemical Co. Ltd. is a wholly owned Chinese subsidiary of
McVicar (Hongkong) Advanced Material Co. Ltd. which is 51% owned by McVicar
Resources Inc. Hongbo has developed over 30 advanced intermediate chemical
products for the personal care, industrial and pharmaceutical industries with
close cooperation with the leading chemical organization in China, the
Shanghai Institute of Organic Chemistry under the China Academy of Sciences.
This press release contains forward-looking statements which reflect the
Corporation's current expectations regarding future events. The
forward-looking statements involve risks and uncertainties. Actual results
could differ materially from those projected herein. Although we believe that
our expectations are based on reasonable assumptions, we can give no assurance
that our expectations will materialize.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Dr. Gang Chai at: 55 University Avenue, Suite
605, Toronto, ON, M5J 2H7, Tel: (416) 366-7420, Fax (416) 366-7421,