VANCOUVER, British Columbia, Sept. 20, 2018 (GLOBE NEWSWIRE) — Gen III Oil Corp. (“Gen III” or the “Company”) (TSX-V: GIII) (OTCQX: ISRJF) is pleased to provide the following corporate updates:
- In late August, the Company entered into a technical and re-refinery operations advisory agreement with Mike Ebert. Mr. Ebert’s first-hand industry knowledge of re-refining and used motor oil has already provided several incremental improvements to the project design and is indicative of the evolution of the Gen III management team over the past year.
- Stantec Consulting Ltd. was retained to complete an application to Alberta Environment and Parks (“AEP”) for an Environmental Protection and Enhancement Act (“EPEA”) Industrial Approval for the Bowden facility. Stantec/Gen III has submitted the application and anticipate receipt of the project environmental permit in Q4/2018.
Site Preparation and Pre-Construction Activities:
- JADA Solutions (HSE) Inc.’s semi-destructive pre-demolition hazardous abatement assessment for the Bowden facility has been included in the demolition tendering package.
- It is anticipated Gen III will go to market with the final demolition RFP package prior to the end of this month.
Front-End Engineering and Design:
- Stage 1 (Stantec Consulting Ltd.) and Stage 3 (Process Dynamics Inc.) design packages (“PDP’s”) were completed ahead of schedule in August and are currently undergoing edits prior to final sign off along with the completion of ancillary supporting documentation. Gen III continues to finalize its Bowden facility licensing agreement with Process Dynamics for the use of any Stage 3 proprietary technology.
- Koch Modular Process Systems (“Koch Modular”) completed additional pilot tests during August which have enabled them to finalize the Stage 2 solvent ratio and Group III yield offtakes. The tests were successful and they confirmed Group III offtake yields of between 70% to 75% of Stage 2 input, which will lead to improved corporate revenues.
- In August, Koch Modular presented Gen III with a preliminary design costing proposal (including transportation and installation) with a +/- 30% expense tolerance, that remains within budget. Manufacturing, fabrication, transportation and installation figures will be refined in the coming months to within a +/- 15% tolerance.
Used Motor Oil (“UMO”) Feedstock Supply:
- The Company has secured additional verbal commitments and/or letters of intent since July, for the full UMO feedstock requirement of 150,000,000 litres/annum. Negotiations continue with each of the interested vendors in parallel with ongoing financing discussions in order to turn the verbal commitments or letters of intent into binding, take or pay contracts.
- In the past 90 days, ten commercial entities have entered into NDA’s with the Company and have been granted access to our project data room.
- During the first three weeks of September, the Company received both project level and public company level financing term sheets from a number of these entities. These proposals are currently undergoing review by Gen III’s senior management and board of directors to ensure shareholder dilution is minimized.
- Several of the remaining entities in the data room have indicated they will be presenting term sheets during the balance of September and into early October, although the proposed terms are unknown at this time.
- Export Development Canada’s Cleantech Project Finance team have participated in our data room and continue to review Gen III’s submission for project funding.
- Applications for government grants have been submitted to Sustainable Development Technology Canada.
- Discussions have been held with both the federal government’s Growth Hub team and the Access to Capital division of the Alberta government’s Economic Development and Trade Office.
- In an effort to maintain FEED and site demolition momentum and timelines while the project financing process is completed, Gen III’s board has decided to initiate a small non-brokered private placement, which will be priced in the context of the market.
Company President & COO Gordon Driedger stated, “We are pleased with the progress made during the most recent quarter. The project is advancing materially on several fronts simultaneously and is on schedule for completion in late Q2/2019.”
Company Executive Vice President, Corporate Finance Mark Redcliffe stated, “We are extremely pleased with the interest shown by private equity groups, impact investors, family offices and various Canadian government entities in our project. We look forward to partnering at the project level with one or several of these parties in the near future.”
About Gen III Oil Corporation
Gen III Oil Corporation is an innovative oil processing company with the most advanced re-refining technology in the industry. The Company’s patented ReGenTM technology process combines proven refining technologies into a proprietary process that is able to extract a higher quantity of high quality base lubricating oils than traditional re-refineries, including greater than 50% Group III production of synthetic grade motor oil in a commercial scale re-refining operation. The Company currently holds 6 patents issued in North America and has 10 patent applications, patents pending or under review in strategic countries around the world. The Company’s first full-scale facility is currently under development in Bowden, Alberta, 100km north of Calgary, with targeted production commencing in late Q2 of 2019 (the “Project”). With a fully executed off-take marketing agreement in hand with Elbow River Marketing Ltd., a subsidiary of Parkland Fuel Corporation, the Company has in place agreements for the sale of all of its finished products when commercial production begins at its Bowden facility. 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.
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On Behalf of the Board of Gen III Oil Corporation
Chief Executive Officer
For further information, contact Greg Clarkes at (604) 806-5275
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this news release may contain forward-looking statements that involve financial projections, substantial known and unknown risks and uncertainties, certain of which are beyond the control of the Company. Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These include, but are not limited to, the statements regarding the quantity and quality of the re-refined products that might be produced; the cost of construction of the first ReGen™ re-refinery; raising sufficient capital to support the construction of the Project; the estimated operating costs for the Project; the market for the finished products; negotiating off-take agreements for those finished products; and the anticipated annual recurring revenue and EBITDA derived from those operations. Actual results may differ materially from the forward-looking information contained herein. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, except as required by applicable law. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.