VANCOUVER, BRITISH COLUMBIA, July. 9, 2018 (GLOBE NEWSWIRE) Gen III Oil Corp.(“Gen III” or the “Company“)(TSX-V:GIII) is pleased to provide the following corporate updates:
Analyst Coverage and Marketing:
- On May 10, Canaccord Genuity initiated analyst coverage of Gen III which was followed in late June by a five-day marketing tour through Vancouver, Calgary, Toronto and London (UK).
- Hybrid Financial Ltd.’s marketing services contracts for Canada and Germany expired on June 26 and were not renewed.
- The Company will take greater internal control of its public branding/marketing efforts as we move through the Summer and into the Fall.
- Expert Rail Systems confirmed the number for railcars needed to maintain and support Gen III operations and validated a proposed three spur additional rail design ladder. The final ERS report was submitted and approved by the Company in May.
- 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 have submitted the application and anticipate receipt of the project environmental permit in late Q3 or early Q4/2018.
Site Preparation and Pre-Construction Activities:
- Thurber Engineering have competed a comprehensive soils investigation study and geotechnical report which has been presented to the design team and will form the basis of foundation design.
- JADA Solutions (HSE) Inc. has completed a semi-destructive pre-demolition hazardous abatement assessment for the Bowden facility. The final report was submitted on June 7, 2018 and will be included as part of the demolition tendering documentation.
- Gen III has solicited expressions of interest from selected demolition contractors for the existing Parkland Refinery site and expects to make an award decision by the end of July.
- Front-End Engineering and Design study work remains on schedule and completion is anticipated in late Q3. Delivery of the individual engineering packages for the three modular processing stages are expected throughout early-mid Q3/2018.
Used Motor Oil (“UMO”) Feedstock Supply:
- The Company has secured verbal commitments for the full UMO feedstock requirement of 150,000,000 litres/annual. Negotiations will continue with each of the interested vendors in parallel with ongoing financing discussions in order to turn the verbal commitments into binding, take or pay contracts.
- In the past 45 days, seven commercial entities have entered into NDA’s with the Company and have been granted access to our data room to conduct project finance due diligence.
Application for Carbon Credits:
- Gen III Oil Corp has engaged Cap-Op to provide support in the development of a government-approved Carbon Offset Quantification. Cap-Op reviewed the document in the context of project objectives and found no material issues. Cap-Op will begin work on a technical carbon model.
Company President & COO Gordon Driedger stated, “We are pleased with the FEED study, environmental permitting, feedstock supply sourcing and financing 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. We are grateful to the dedicated staff of our project partners.”
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.