In response to the many emails and phone calls we have received regarding earlier announced investment opportunities in Oklahoma, we would like the clarify the following: The initial property presented to us for a potential development of sustainable solar homes proved unsuitable due to zoning and planning problems, etc. We are looking at other possibilities in the area and are also searching for a suitable builder/contractor to partner up with. However, our priority at this time, is set on our investments in Mexico, where we see the real opportunity to create a sustainable long term income for PROGREEN, that will give the company a stable platform for future expansion into other projects, both in Mexico as well as in the US.
ProGreen is now in the process of setting up a Joint Venture subsidiary in Mexico, where ProGreen will own 51% and Contel 49%. This will enable us to bring assets on to the balance sheet for the land reflected in the latest press release.
We have now completed the drilling the third well on the first tract of land in Baja. Out of the three holes drilled, one was stopped at about 150 ft. as the granite was too hard to drill. The other two wells were drilled to 300 and 280 ft. respectively and both were successful, resulting in a flow of approx. 4 inches each. The already existing old open well has now also been tested and also shows to have a capacity of a further 2 inches. We now have more than what will be needed for irrigation of this first tract of land and we will now commence the marketing this property.
As clarification to questions related to the press release earlier today, we would like to state the following: The first JV, announced in February, had a PROGREEN funding requirement of up to $300K. The JV announced today has PROGREEN funding requirement of up to $600k. The funding should be considered as financing as it will be paid back from first revenues from the property. Once the “up to $600k” has been repaid to PROGREEN, all revenue from leased land will be split equally between CONTEL and PROGREEN, creating a solid revenue stream for both parties for years to come. As this JV concerns more than six times the compared to the first JV, but with only twice the capital need, it should be clear that this deal represents a huge opportunity for PROGREEN.
AS A QUICK UPDATE FROM BAJA, WE ARE HAPPY TO REPORT THAT EVERYTHING IS PROGRESSING WELL AND ACCORDING TO PLAN HERE IN MEXICO AND WE EXPECT TO BE ABLE TO PUBLICIZE A PRESS RELEASE NEXT WEEK OUTLINING MORE DETAILS OF THE PROGRESS OF THE DEVELOPMENT WITH OUR JOINT VENTURE WITH CONTEL.
CEO TRAVELLING TO BAJA TO TRY TO FINALIZE A FRAME AGREEMENT FOR SEVERAL TRACTS OF LAND THAT WILL NOW LIKEY TOTAL OVER 10,000 ACRES. FURTHER UPDATE WILL BE POSTED WHILE IN BAJA NEXT WEEK.
ProGreen Properties, Inc. is a company dedicated to developments that rely on energy efficiency and green technology. We welcome you to our new website, and will keep you updated regularly with happenings through this blog. Please visit progreenus.com for more information.