|By Marketwired .||
|December 3, 2013 08:30 AM EST||
KIRKLAND LAKE, ONTARIO -- (Marketwired) -- 12/03/13 -- Nordex Explosives Ltd. (TSX VENTURE: NXX) ("Nordex") announced today it has received the first firm purchase orders for the new "buttbuster" (Johnex) products totaling approximately $750,000 for delivery in Q1 2014. Nordex recently completed construction and received final government approvals for its new state-of-the-art explosives production facility which has complete manufacturing capabilities for the "buttbuster" line of Perimeter Control products.
Current Nordex "buttbuster" manufacturing capacity is 120 cases per shift. Nordex has updated and revised its marketing materials and information and has begun full scale marketing in Ontario. To see a video of the "buttbuster" production line in operation please visit http://buttbuster.nordexexplosives.com/ and click Video of Production.
Nordex made application to the Northern Ontario Heritage Fund and received conditional approval based on completion of this manufacturing plant to receive funding for up to 50% of the cost of the plant in the form of grants, loans and tax credits. Upon receipt of these funds, Nordex will immediately pay off the current outstanding high interest lease line of credit in full without any interest or other penalties. This lease line applies specifically to only one module of the production facility; the balance of equipment and infrastructure costs were paid with proceeds raised through a previous non-brokered sale of shares and from operating capital.
"To produce a quality product that performs in a challenging environment, it takes a professional company with a "can-do" attitude. It was for these reasons that Johnex Explosives began exploring a relationship with Nordex Explosives Ltd. to manufacture and promote the "buttbuster" ECONOTRIM and EZICHARGE explosive product lines in Canada beginning in September 2008" said David Blythe-Wood, Managing Director of Johnex Explosives. "Jim Taylor was our primary contact and the driving force for Nordex on this project and our joint cooperation has culminated in the first technologically advanced "buttbuster" manufacturing plant commissioned outside of Australia. We have visited the Nordex site several times during recent months and are very excited with the world class manufacturing facility that is now fully operational."
"These initial sales are just the beginning and are a result of the culmination of many years of dedication and hard work. We did incur delays which were directly related to a lack of financial resources in the Company in 2010 and 2011. In 2012, under a new Board with new management, we were able to raise the required funds with the support of new shareholders to complete this manufacturing plant. We appreciate the support that Johnex Explosives, the Ontario government and our shareholders have provided us and now we are focused on growing higher margin sales," says Jim Taylor, CEO of Nordex Explosives Ltd. "With the exclusive rights to the manufacturing and distribution of the "buttbuster" products in Canada, Nordex Explosives Ltd. is the only company with the ability to supply the construction and mining industries with one of the best and most efficient perimeter control products in the world. "
ABOUT NORDEX EXPLOSIVES: NORDEX EXPLOSIVES LTD. is a manufacturer and distributor of explosives for the mining, quarry and road construction industries since 1970. Its manufacturing operations and distribution centre is strategically located in one of the world's largest mining regions near Kirkland Lake, Ontario. Nordex is the exclusive supplier of the "buttbuster" Econotrim and Ezicharge perimeter control explosive products in Canada. Nordex trades on the TSX Venture Exchange under the symbol "NXX".
Additional Information relating to the Company is available on SEDAR at www.sedar.com.
Certain information included herein may contain "forward-looking statements" which reflect the current expectations of management of the Company regarding the Company's future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "should", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "aim", "endeavor", "seek", "predict", "potential" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management of the Company. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, cancellations of or the failure to renew purchase orders; production and delivery issues; quality, pricing and availability of raw materials; compliance with environmental regulations; exchange rate fluctuations as well as the other risks identified in the "Risk Factors" contained in the Company's Management Discussion and Analysis for fiscal 2012 and other public filings (copies of which may be obtained at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by this press release. These factors should be considered carefully and the reader should not place undue reliance on the forward-looking statements. Although any forward-looking statements contained in this press release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure readers that actual results, performance or achievements will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and, other than as required by law, the Company does not intend, and does not assume any obligation, to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
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