FOX-TEK Completes Testing and Reports Findings to Client in India and Augusta to Extend Term of Warrants
July 9, 2018 (Source) — Augusta Industries Inc. (TSXV: AAO) (the “Corporation”), a developer and marketer of patented non-intrusive sensing systems, is pleased to announce that its wholly owned subsidiary, FOX-TEK Canada Inc. (“FOX-TEK”), has received a small test plate from the Corporation’s agent in India to test and provide a report to a client.
The objective of the test and report was to show conclusively that FOX-TEK’s EFM technology can work with a typical vessel wall where the inside surface has a number of stellite layers added. Two methods were used to measure both the baseline thickness of the sample, the first a standard UT tool was used to measure the baseline thickness of the plate. Secondly, for the rest of the tests, a small EFM array was installed on the non-stellite side of the plate. A small test plate (roughly 6 by 6 inches) was provided to FOX-TEK by its agent on behalf of the client. One side of the test plate had layers of stellite welded on. This test sample represents a small sample of an actual issue where the inside material is eroded by the process internal to the vessel.
FOX-TEK was able to successfully demonstrate that it is possible to perform a baseline reading of the starting thickness of the provided sample using a precision ultrasonic measuring instrument. This was followed by three phases of material removal from the stellite side of the plate while an EFM unit was used to measure the changes over time.
FOX-TEK prepared a report summarizing its findings from the testing and has forwarded same to its agent and client. FOX-TEK will be working with its agent and the client in order to move this project forward.
The Corporation will also like to announce that, subject to the receipt of TSX Venture Exchange, it has agreed to amend the expiry date of the 20,200,000 common share purchase warrants (the “Warrants”) of the Corporation from July 14, 2018 to July 14, 2020.
The Warrants, which were originally issued on July 14, 2015, were issued pursuant to the Corporation’s private placement offering of 20,200,000 units. Each Unit was comprised of one (1) common shares and one (1) common share purchase warrant (the “Warrant”). Each Warrant entitles the holder thereof to acquire one (1) common share at an exercise price of $0.07 per share at any time until close of business on July 14, 2018.
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Each Warrant, as amended, will entitle the holder thereof to purchase one common share of the Corporation at any time until the close of business on July 14, 2020 at an exercise price of $0.07 per common share.
The Warrants will be amended, effective July 14, 2018, to extend the term of the Warrants until July 14, 2020. All other provisions of the Warrants will remain the same.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. (“Marcon”), Paragon Blockchain Inc. (“Paragon”) and FOX-TEK, the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon’s major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation’s FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
Paragon has the potential to unlock substantial new opportunities capable of impacting the business of Marcon. Specifically, Marcon seeks to create an eco-system in the supply chain management of clients to change the dynamics of the scoping and bidding process by providing vendors and subcontractors with A.I. data mining tools to proactively drive the process. Blockchain technology is of critical importance to FOX-TEK as well particularly the expansion of its’ non-intrusive technology in the oil & gas industry, whose clients include many of the biggest companies in the world.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and as neither approved nor disapproved the contents of this press release.
This press release contains forward-looking statements based on assumptions, uncertainties and management‘s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation‘s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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