Ecosphere signs LOI with AMC for Ozonix water treatment technology licensing deal

Ecosphere Technologies has signed a letter of intent (LOI) with Abandoned Mine Cleanup (AMC) to deploy its Ozonix water treatment technology in the mining industries of North and South America.

The LOI terms call for AMC to pay Ecosphere a $5m technology licensing fee and ongoing royalty payments on all Ozonix related gross revenue.

AMC will be required to buy two Ozonix units, specifically designed for the mining industry, each year until it pays Ecosphere $20m in equipment purchase orders.

Ecosphere will own a 10% stake in AMC and support in the development of complementary technologies and solutions.

The LOI is subject to a definitive license agreement and payment of the initial instalment of the license fee and a down payment for the first unit to Ecosphere by 31 March 2016.

AMC chairman Dean Becker said: "With over 23 approved and pending United States patents and 5+ billion gallons of water treated to date, Ozonix is the most proven, high-volume solution for treating contaminated waters without the use of toxic chemicals.

"With an estimated 50,000 Abandoned Mines identified in the US alone and estimated cleanup costs ranging from $36-72 billion, I look forward to continuing my work with the Ecosphere team and am confident in our ability to provide mining companies with a cost-effective solution to help meet and exceed the ever increasing water, environmental and safety regulations."

Ozonix has been tested to treat a range of contaminants that are detected in the mining industry including hydrogen sulfide, heavy metals and naturally occurring radioactive materials.

In February 2009, Ecosphere completed an independent test and evaluation project for Newfield Exploration Mid-Continent in partnership with The Benham Companies to secure a permit approval from the Corporation Commission of Oklahoma for discharging Ozonix treated frac flowback waters to the ground.