VANCOUVER, British Columbia, July 19, 2019 (GLOBE NEWSWIRE) -- Gen III Oil Corp. (“Gen III” or the “Company”) (TSX-V: GIII) (OTCQX: ISRJF) announces the following updates:

Project Financing

Gen III has received a non-binding, non-exclusive, indicative term sheet from a private debt group for up to 83% of total project financing.  The structure also contemplates a 5% loan bonus warrant, as defined by the TSXV Exchange policies.  Due diligence is ongoing at this time and there is no guarantee the term sheet will be converted into a binding agreement. Other institutional parties are also undertaking due diligence with a view to making proposals to finance the Bowden project.

Environmental Permitting

Application was made to Alberta Environmental and Parks (“AEP”) for an Environmental and Enhancement Act Industrial Approval for the Bowden Facility in July 2018.  Supplemental information request and response exchanges with AEP continue.  AEP granted approval to advance the requisite 30-day public notice period which subsequently ended on June 30, 2019.  One submission was received during this period which the Company, in conjunction with Parkland Refinery is addressing.

Second Stage Pilot Testing

In March of 2019, Gen III completed Stage 2 (Molecular Separation Unit) production pilot testing under the Company’s exclusive arrangement with the global leader in the design and supply of liquid-liquid extraction technologies. The test demonstrated the feasibility of the Stage 2 proprietary solvent extraction technology to produce both a high quality and low-quality base oil stream (using a distillate/vacuum gas oil derived from used motor oil). Subsequent independent analytical testing by three leading independent laboratories confirmed the 55 gallons of high-quality base oil produced meets the American Petroleum Institute’s specification for Group III base oil.

Independent Lubricant Manufacturers Association (“ILMA”)

The Company was accepted into Alexandria, Virginia based ILMA on June 5, 2019.  ILMA members produce over 30% of all lubricants and 75% of all metal-working fluids and other specialty industrial lubricants sold in the USA.  The production of Group III base oil during the second stage pilot testing coupled with membership in ILMA has bolstered our ability to pursue API SN Plus and ILSEC GF-5 passenger car motor oil certifications, which will ultimately lead to higher prices for our base oil offtakes over uncertified base oils. 

ILMA membership has also improved our direct access to global blender compounders to secure indicative offtake pricing and volumes.  The Company believes these recent developments significantly enhance the price silent, Elbow River offtake marketing agreement from the perspective of a potential institutional investor.

Patents 

One additional Canadian patent was granted between April and June 2019.  This brings the Company’s total number of patents granted or awarded to ten (10) in the USA, Canada, India and Singapore, with an additional seven (7) pending in Mexico, Malaysia, Singapore, USA and Europe.

Stock Options

The Company has granted a total of 200,000 stock options to a new employee, entitling them to purchase one common share for each option held at a price of $0.40 per share and valid for a period of two years. The options will vest in accordance with the Company’s stock option plan.

Forward Looking Financial Projections

Based on the Bowden plant running for 330 days/annum; a 60/40 debt-to-equity ratio; using actual market contracted prices for Group II and Group III secured in Q2, 2019; and the Company’s financial model, we anticipate generating approximately $170 million in gross revenues and EBITDA of $85 million in our first full year of plant operations, after nameplate commissioning.  EBITDA is a non-GAAP measure.

About Gen III Oil Corporation

Gen III is first and foremost a cleantech company that is building a green project that has compelling economics, without 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.  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”).  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 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.

On Behalf of the Board of Gen III Oil Corporation
“Greg Clarkes”
Greg Clarkes
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 entry into agreements to increase the potentially available annual UMO feedstock requirements and to allow the Company to further diversify its feedstock supply chain, statements with respect to the quantity and quality of the re-refined products that might be produced; the construction of the first ReGen™ re-refinery in Bowden, Alberta; targeted production dates for the Project; raising sufficient capital to support the construction of the Project; the estimated operating costs for the Project; the market for the finished products; and off-take agreements for all finished products from the Project. Undue reliance should not be placed on these forward-looking statements and information as they are based on assumptions made by Gen III and certain risks as of the date hereof regarding, among other things, the ability to enter into binding feedstock supply agreements with industry participants and meet all required conditions for the supply of feedstock of which there is no assurance, the ability to secure sufficient debt and equity financing for the Project, ability to secure and protect Gen III’s proprietary technology and intellectual property, that favourable growth parameters continue to exist in respect of current and future growth projects (including the ability to finance such projects on favorable terms), prevailing commodity prices, margins and exchange rates, that Gen III’s businesses will achieve sustainable financial results, and that the Company’s future results of operations will be consistent with management expectations in relation thereto, the availability and sources of capital, operating costs, ongoing utilization and future expansion, delays in plant construction and unexpected facility downtime and the ability to obtain required regulatory approvals as and when required. Readers are directed to, and are encouraged to read, Gen III’s management discussion and analysis for the three-months period ended March 31, 2019, and year ended December 31, 2018 including the disclosure contained under the heading “Risk Factors” therein. The Company assumes no obligation to update forward-looking statements, except as required by applicable law.