Virotec teams up with TerraPlus
Aim-listed green technology firm Virotec has signed an important Memorandum of Understanding with Iberian-based engineering consultant TerraPlus, writes James Crux.
Formerly listed as a mining venture Down Under, Virotec (VTI) has worldwide marketing and distribution rights to Bauxsol, a 'green' technology that neutralises acid and removes heavy metals from environmentally contaminated water.
Recent estimates suggest that the market for the technology could be worth £100 billion. In today's announcement, the Virotec board said that engineering consultant TerraPlus had 'already identified potential opportunities in the Portuguese and Spanish mining industries' to use Virotec's Bauxsol technology. TerraPlus – full name TerraPlus Engenharia Do Ambiente E Fiscalizacao LDA – has a strong presence in the civil engineering, mineral extraction, water management and sanitation services fields. Under the terms of the MOU, TerraPlus will be Virotec's exclusive licensed agent in Portugal and a non-exclusive licensed agent in Spain, with Virotec supplying the actual Bauxsol technology as well as technical support, on a project-by-project basis.
Today's news appears to be a significant strategic development for the company. At a recent meeting with journalists, executive chairman Brian Sheeran said that 'our aim is not only to protect the environment, but to do it in an economically appealing way that will save mining companies money. We came to Aim to internationalise the technology and be first to market'. In line with this strategy, Virotec recently opened up an Italian subsidiary, Virotec Italia, operating from Rome. The Italian office is working to secure permits and licences for the transportation and application of its Bauxsol technology across the European Union, while other offices will be opened across Europe.
The chemicals-listed company floated on Aim in July following a placing of 27.5 million new shares at 14p, which raised £3.36 million net. The shares were unchanged at 15.75p on today's news, valuing the business at £21.65 million.