Cardinal Resources LatAm Initiative Reaches Key Milestone; First Soloy, Panama Red Bird Water System Passes Acceptance Tests
PITTSBURGH, PA -- (Marketwired) -- 12/15/15 -- Cardinal Resources Inc. (OTC PINK: CDNL), a global producer of patented, solar powered, community-scale drinking water systems, today announced its Latin American initiative successfully cleared its final acceptance milestone in Panama this week by surpassing its water purity standards with the Company's first Red Bird System installed in Soloy, Panama.
Cardinal received the summary test results this past week and, accordingly, has now met all the requirements clearing the way for the prospective order of four more of its patented, Community Red Bird ("CRB") Systems from the Government of Panama. The Panamanian government agencies that oversee and regulate the water industry have reported they are well funded for a comprehensive upgrade to the country's water infrastructure.
Cardinal expects the purchase of the next four Cardinal Red Bird Systems, with storage and distribution, is subject only to finalization of site selection, final site visits by agency directors and administrative process anticipated in early 2016.
Cardinal LatAm Initiative Background
Recently, on November 19, Cardinal announced it and its local Panamanian distributor Agua Saludable Group, had installed its first CRB-10 System in Soloy, Panama -- to the delight of local residents and approval of government officials. The Company also announced that the Soloy installation was an initial project whose evaluation and acceptance lab testing would be completed in "early December."
On December 3, the Cardinal team including Agua Saludable, returned to Soloy where they were joined by various Panamanian officials for a site inspection to evaluate the CRB-10, the newly Cardinal-trained indigenous CRB-10 operators and to observe the collection of water samples for secure transport to an independent laboratory, Inspectorate, for analysis. Field water samples were collected for pH, free chlorine and total chlorine from the source (untreated) water, the Red Bird-treated water as well as biological samples from the treated water for laboratory analysis.
Also during this week, the Cardinal team attended follow-up meetings at the Panamanian Presidential Offices with cabinet level officials to help finalize plans for the follow-on orders of four more CRB Systems. Panamanian officials in attendance included the National Institute of Aqueducts and Sewerage (IDANN), Sub-Directorate of Water and Sanitation (DISAPAS) and National Council for Sustainable Development (CONADES). Ultimately, assuming continuing successful CRB installations, the Panamanian plan outlined envisions a rolling order of four CRB water systems per month to be deployed nationwide in 2016 and 2017.
On December 11, Cardinal received the summary laboratory test results of the Dec. 3 test samples which met or exceeded all drinking water standards with the clarity of commercial bottled water -- at a tiny fraction of the cost. The drinking water from each CRB installation is always tested for purity. However, as the first CRB-10 unit installed in Panama, the operational and testing process has been extensive which Cardinal welcomes as its line of patented, Red Bird Systems are state of the art and equally effective regardless of the source of fresh water.
Cardinal LatAm Initiative: 2016
In December meetings at the Presidential Offices, CONADES and IDANN officials discussed their plans and budgets for the Soloy area with Cardinal and Agua Saludable management and confirmed their plan to visit the site in January. They value the Cardinal Red Bird Systems' robust advantages as a 100 percent solar-powered system, with an industry-fast 90-day lead time from purchase order to onsite delivery -- and three-day installation to produce water at just 0.0016 cents/gallon. Compared with a five-year build out of a conventional water infrastructure, the Red Bird is extremely cost effective.
Panamanian officials stated they plan to carve out a multi-system pilot program for Soloy and another unnamed location which are anticipated to go through a routine approval bidding process. The Community of Soloy has identified four initial sites for Cardinal's Community Red Bird Systems, one CRB-20 and three CRB-10s, and is lobbying the Panama federal government to fund this program by February. In closing the meeting, Team Cardinal, IDANN and CONADES scheduled a trip for their respective directors to visit the Soloy CRB-10 site in January.
Commenting on this week's breakthrough in Cardinal's LatAm initiative, Jason Sundar, Chief Executive Officer of Cardinal's Latin American distributor, Agua Saludable, said, "The Cardinal Red Bird System is the right solution, in the right place at the right price. Panama is one of the most advanced economies in Latin America and its leaders recognize the importance of clean drinking water for its people and the country's future economic development. We're impressed with the forward thinking of all Panamanian officials involved in this important humanitarian and economic development project, and excited with the prospect of moving into full scale commercial deployment in early 2016."
Cardinal CEO, Kevin Jones, said, "I thoroughly enjoy doing business in Panama, and am pleased with the fast progress in our LatAm initiative. Most of all, it is incredibly gratifying to see the faces of the local residents as they receive clean, pure drinking water conveniently -- many for the first time in their lives. I hope all our Cardinal shareholders will share the joy that their support enables. I will be posting an updated Panama photo gallery on our website today at www.cardinalres.com, and our Facebook page at https://www.facebook.com/Cardinal-Resources-Inc-CDNL-131765917547/ for your perusal."
Following positive results of the water tests, the Soloy CRB-10 will be restarted after the holidays and will be operating full-time by Cardinal-trained indigenous operators which provides skilled, sustainable jobs. With the four new CRB systems planned, with storage and distribution build out, the five CRB's will be capable of providing clean water for an estimated 12,000 Soloy residents at 40 liters/day/person.
The addressable Latin American market for clean water is vast, with the World Health Organization estimating over 50 million people in the region are without adequate access to clean, pure water. In Panama, where the access to water is among the best in the region, the UNICEF and WHO 2013 update to Progress on Sanitation and Drinking Water estimates over 500,000 people lack access to clean pure water. Additionally, the installation of the CRB-10 system will enable Cardinal's LatAm distributor, Agua Saludable Group, to showcase an actively working Red Bird System to other potential customers from throughout the region.
About Cardinal Resources
Cardinal Resources brings a unique blend of experience, technology, and focus to projects worldwide and across the United States from its office in the Pittsburgh, Pennsylvania area. Its commitment to Clean Water, Clean Environment, Worldwide includes the patented Red Bird System, a solar-powered community-sized drinking water system, and the Grey Bird Approach to wastewater treatment and green infrastructure as well as a deep range of traditional environmental and engineering services. For more info, visit us at www.cardinalres.com.
Certain statements in this presentation constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, such as business and political conditions in the geographic areas in which we sell our products, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which we are engaged.
The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this presentation and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
Source: Cardinal Resources, Inc.