/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, July 28 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the "Company") (WMK - TSXV) is pleased to announce that it has entered into a U.S. Supply and Distribution Agreement with a leading supplier of performance additives to the concrete industry.
The agreement provides the supplier with exclusive distribution rights to market Whitemud(MK) to the ready mix concrete, precast concrete, concrete block, concrete brick, concrete pipe, and mining industries for the United States. The supplier will purchase Whitemud(MK) directly from Whitemud for the purpose of distribution and resale. More information is available at www.whitemudresources.com.
The supplier will, together with Whitemud, immediately focus on key construction opportunities in the U.S. where metakaolin provides unique value added solutions that enhance concrete performance and reduce the environmental impact. Applications that will be targeted include the construction of large infrastructure and transportation projects, waste water and water treatment plants, parking structures, tunnels and underground mines.
"We are very pleased to partner with a key industry player to significantly expand our market reach throughout the U.S. This agreement provides access to a nationwide network of experienced sales professionals, product and customer support, distribution infrastructure, and increased product credibility, all of which are expected to enable significant sales growth. Our new marketing partner recognizes that Whitemud(MK) offers unprecedented value for enhancing the performance of many concrete blends", says Burl Aycock, CEO of Whitemud Resources.
Whitemud announces that the Company will not make the July 31, 2010 interest payment, or the deferred January 31, 2010 interest payment on its outstanding Debentures. Management is currently developing a proposal for the debenture holders. Any plan or proposal that the Company develops is subject to all necessary approvals, including stakeholder and regulatory approvals. The Company will keep debenture holders and shareholders informed on developments with respect to its plans.
Management believes this Distribution Agreement is a major step in the execution of its marketing plan and is a key milestone to Whitemud's efforts to secure additional financing to meet ongoing needs for working capital and obligations to creditors.
Although sales to date have not met management's expectations, the Company's sales have grown and new markets and applications continue to develop. In July, Whitemud initiated rail car shipments into Colorado for oil well cementing with an international oilfield services company. Whitemud(MK) is slated for use at an upcoming potash mine construction project in Saskatchewan beginning later this summer, and small shipments have been made to Panama and Turkey.
The Company and its new Distribution partner in the U.S. have initiated a number of trials with producers in California, Arizona, Utah, Pennsylvania, Colorado, New Mexico, Nevada, and Idaho for use in precast concrete, ready mix concrete, concrete block, and shotcrete.
Metakaolin is an off-white product that reacts with cement to increase strength, improve durability, resist chemical attack, reduce the effects of alkali-silica reactivity, and lower the environmental footprint of concrete. Metakaolin can also enhance the performance of other cementing materials such as fly ash and slag. Whitemud has developed a low-cost process to produce and supply metakaolin to add value in concrete applications not previously considered economical.
Whitemud Resources Inc. is a Canadian-based corporation that is exploiting a large kaolin deposit in southern Saskatchewan. The Company produces Whitemud(MK), cement-grade metakaolin that enhances the performance of cement used in construction using a patented process that minimizes environmental impact. The Company is positioned to benefit from expanding North American infrastructure needs and growing environmental pressures facing the cement industry. Visit www.whitemudresources.com for more information.
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Forward Looking Statement
This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections and guidance or other statements that are not statements of fact, and guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements regarding the expectations that: (i) the supplier's distribution network will make Whitemud's metakaolin available to concrete producers across North America; (ii) the impact of the partnership between the parties will be positive and result in significant sales growth; (iii) Whitemud and the Supplier will work together to provide unique and economical solutions with metakaolin to the concrete industry to provide enhancement and reduce environmental impact of concrete; (iv) management's development of a proposal for the debenture holders; (v) impact of the distribution agreement on the Company's ability to gain additional financing; and (vi) use of Whitemud's metakaolin in a potash mining project. Actual results may vary from the forward looking information provided. The statements are made in reliance on the assumption that the supplier's North American distribution network will result in increased marketing opportunities and sales growth for Whitemud's metakaolin product. The statements are subject to risks, including risks inherent in entering into an exclusive distribution agreement, current economic conditions in general, industry specific risks relating to the sale, acceptance and distribution of concrete additives, ability to gain additional financing; the approval of debentureholders and/or other stakeholders in any proposal made by management with respect to its outstanding debentures, and those other risk factors related to the Company's business more specifically set forth in its prospectus and Annual Information Form. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
SOURCE WHITEMUD RESOURCES INC.
For further information: For further information: Burl Aycock, CEO, Whitemud Resources, Telephone: (403) 695-1012; or Kelly Babichuk, President and COO, Whitemud Resources, Telephone: (403) 517-0040