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VANCOUVER, British Columbia, July 28, 2020 (GLOBE NEWSWIRE) -- Gen III Oil Corporation (“Gen III” or the “Company”) (TSX-V: GIII) (OTCQX: ISRJF) is pleased to announce that further to earlier updates the Company is involved in offtake supply discussions and commercial negotiations of varying scope and timing with several base oil purchasers and blenders. The Company has already received an indexed, commercial term-sheet from one potential purchaser and has successfully completed Group III base oil offtake sample testing at the facilities of a super-major fuels and lubricants producer. Gen III has also initiated Group III base oil sample testing at the formulations’ facility of another super-major.
Due to positive lab results and the completion of their review of Gen III’s data room, one of the super-majors (the “Potential Client”) requested Gen III enter commercial negotiations for the purchase of our Group II+ and Group III base oils. The Potential Client is a multi-billion-dollar, international producer of fuels and lubricants, which has stated its intention to become a net-zero carbon emitter. The Potential Client’s name will remain confidential for competitive reasons.
“This is indeed a significant set of developments resulting directly from the positive outcome of the Potential Client’s due diligence on our ReGen™ process and their technical analysis of Gen III’s Group III base oil samples. During recent discussions, the Potential Client also acknowledged the importance of securing industry accreditations and specifically referenced Gen III’s American Petroleum Institute licensed passenger car motor oil (“PCMO”) formulations. These three PCMO’s were built on our Group III base oil by a top global lubricants’ additives manufacturer in 2019. We believe the Potential Client’s acknowledgement of our API certifications further supports the extraordinary engineering, time, science and capital resources that have gone into making Gen III’s evolutionary process,” said Greg Clarkes, CEO of Gen III.
In management’s opinion, the pace of these offtake discussions are accelerating, particularly when one considers the sheer size of super-majors, the number of parties involved in the discussions and the overall effects from the ongoing COVID-19 pandemic. Mr. Clarkes added, “Gen III is working diligently with our strategic, world-class partners to maximize the opportunity our unique assets are positioned to exploit. While there is no guarantee of a successful outcome, nor of the timeframe in which this might occur, things are rapidly moving in the right direction.”
We are finding the proposition of reducing greenhouse gases emissions by up to 360,000 tonnes/annum at the 2,800bpd Alberta facility, versus burning or disposal of used lubricating oils, and the production of higher quality, re-refined Group II+ and Group III base oils is proving a compelling story to large hydrocarbon producers and re-refinery developers globally. Environmental pressure on the traditional petroleum industry and all levels of government has contributed significantly to a wave of recent interest in the Company’s ReGen™ process and projects. Simultaneously, there has been an accompanying increase in the number of financial institutions tying credit facilities and debt issuances (i.e. Green Bonds and Transition Bonds) to carbon reduction targets for multi-national, industrial conglomerates under the banners of ESG (Environment, Society and Governance) and Impact Investing, which is boding well for Gen III and its patented, ReGen™ liquid waste recycling technology.
With respect to financing, Gen III has a senior debt facility term sheet for up to CDN$72 million in hand from Export Development Canada and another term sheet from a US based private debt entity. The Company is continuing to deal with a number of investment dealers, institutions and high net worth individuals for non-dilutive project level financing. Due to the hundreds of immediate and high paying jobs the Company will create during the final engineering, fabrication and construction phases of the project, we are working with different levels and departments of government towards pandemic related stimulus funds and emissions reduction related grants. Gen III is also involved in discussions with a syndicate of First Nations groups who are seeking long-term, reliable cash flowing projects, that create employment opportunities and are aligned with their traditional, environmental stewardship values.
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 Alberta, with targeted production commencing 18 months after the requisite financing is obtained (the “Project”). With off-take agreements in hand, the Company has in place agreements for the sale of all its finished products when commercial production begins at its Alberta facility. The Alberta 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.geniiiesg.com.
On Behalf of the Board of Gen III Oil Corporation
“Greg Clarkes”
Greg Clarkes
Chief Executive Officer
For further information, contact Mark Redcliffe at (778) 668-5988
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Certain information contained in this news release constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward-looking information”). Without limiting the foregoing, such forward-looking information includes statements regarding the use of proceeds of the Offering and any statements regarding the Company’s business plans, expectations and objectives. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking information. Forward looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management’s good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company’s control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company’s most recent Management’s Discussion and Analysis and financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company’s profile and on the Company’s website, https://www.geniiioil.com/. The forward-looking information set forth herein reflects the Company’s expectations as at the date of this news release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.