A letter of intent has been signed between Covington Springs

and New Horizon Manufacturing. The deal, if completed, will result in control of Covington passing to New Horizon. In return for paying New Horizon 4.4 million shares, which is equivalent to 81.1% of the company, Covington will acquire all the issued stock of New Horizon.

The latter company has developed an improved process for the recovery of silver from chemicals used in the processing of photographic film.