VANCOUVER, British Columbia, Nov. 28, 2019 (GLOBE NEWSWIRE) — Gen III Oil Corp. (“Gen III” or the “Company”) (TSX-V: GIII) (OTCQX: ISRJF) is pleased to announce the following update:
Gen III secured approval (No. 421401-00-00) from Alberta Environment and Parks (“AEP”) for the construction, operation and reclamation of the Bowden ReGen chemical manufacturing plant and waste management facility. The permit is effective November 26, 2019.
The initial application was made to AEP for an Environmental and Enhancement Act Industrial Approval for the Bowden Facility in July 2018, followed by a successful public notification period in June 2019.
Senior management is grateful to both the AEP team overseeing Gen III’s application and for the support of its consultants, including Tetra Tech and Stantec Environmental, without which this would not have become a reality.
Gordon Driedger, President and COO added, “I am extremely pleased with the outcome of the environmental permitting process. It has been a long, comprehensive exercise but a significant milestone has been achieved and this further de-risks the Bowden project. The work of Gen III’s team members to source, analyze, collate and deliver copious amounts of technical information in support of the permitting process has been first class and I am grateful for their efforts.”
The receipt of the Bowden facility environmental permit is a significant milestone for Gen III and its shareholders and it continues the Company’s delivery of numerous de-risking milestones, including:
- Re-confirming there are several private debt, private equity, family offices and investment banks of significant scale and stature under NDA with Gen III. Each is active in our data room and simultaneous project level finance due diligence processes are ongoing and are at varying stages of completion.
- Having signed or being actively in negotiations for contracts/letters of intent for the supply of more than twice our annual requirement of used motor oil feedstock.
- Securing a CDN$114.5 million fixed price for construction from our EPC partner, PCL Industrial Management Inc.
- Achieving American Petroleum Institute (“API”) certification and licensing for our Group III base oil 5W-20, 5W-30 and 10W-30 passenger car motor oil formulations. Each of which received the performance designation of SN PLUS, highlighting their resource conserving properties.
- Receiving a CDN$72 million senior debt facility term sheet for >50% of our project funding requirement from Export Development Canada and an alternate indicative debt term sheet for US$75 million from a US based private debt firm.
- The Company also confirms it is continuing to investigate additional brownfield project sites; is in discussions with virgin crude oil refineries and used motor oil re-refineries to conduct joint-ventures, asset sales agreements; and technology licensing opportunities. Further developments in any of these areas will be announced if, as and when they become material.
- Gen III is in direct negotiations with members of the Independent Lubricant Manufacturers’ Association (“ILMA”), which include globally active petroleum companies, blenders and compounders, to secure additional letters of interest for all our base oils. Gen III previously signed a marketing offtake agreement for 100% of our annual production with Elbow River Marketing Inc, a subsidiary of Parkland Fuels.
About Gen III Oil Corporation
Gen III is first and foremost a cleantech company; building a green project that has compelling economics, without relying on government subsidies. Gen III owns a portfolio of patented technologies that enable used motor oil (“UMO”) re-refineries to produce a higher value product mix of base oils than traditional methods, including 55% Group III. The Company currently holds 8 patents issued in North America, 2 patents issued overseas and has 7 patent applications, patents pending or under review in strategic countries/regions around the world. Gen III’s strategy has been to focus its engineering design and build efforts on brownfield projects and joint-ventures utilizing its proprietary, modular processing technologies. The Company’s systems will also be used to materially improve existing re-refinery assets acquired by Gen III. In addition, the Company will be able to substantially enhance the performance of 3rd party re-refining operations through the issuance of technology licenses. The Company’s first full-scale facility is currently under development in Bowden, Alberta, 100km north of Calgary, with targeted production commencing 18 months after the requisite financing is obtained (the “Project”). The Bowden facility is being designed to process 2,800 bpd of used motor oil into a range of base stocks and related petroleum products. For more information about the Company, please visit www.geniiioil.com.
On Behalf of the Board of Gen III Oil Corporation
Chief Executive Officer
For further information, contact Mark Redcliffe at (778) 668-5988