Canada Carbon Provides Further Detail on Its MOU Agreement With Dunedin Energy
28 September 2018 - 3:49AM
Canada Carbon Inc. (the “Company”) (TSX-V:CCB),
(FF:U7N1) is pleased to announce the signing of a
non-binding Memorandum of Understanding ("MOU") for the supply of
the Company’s Miller nuclear purity graphite to Dunedin Energy
Systems Ltd, an arm’s length Canadian developer of small modular
nuclear reactors. The MOU terms are for the supply of 200 tonnes
per annum of Miller nuclear purity graphite over a 10-year term,
with a floor price of USD $40,000 per tonne. Both companies must
achieve certain milestones in their business development
activities, including the purchaser arranging requisite financing,
at which time a Definitive Agreement will be negotiated.
Terms of the Agreement
- 200 tonnes per year Miller nuclear purity graphite at a floor
price of USD $40k per tonne;
- option to purchase up to an additional 50 tonnes in any single
year of the agreement at a floor price of USD $45k per tonne;
- 10-year term which has renewable provisions;
- A scientific cooperation, collaboration and testing
agreement.
On February 22nd, 2018 Parliamentary Secretary
Kim Rudd, on behalf of Canada’s Minister of Natural Resources, the
Honourable Jim Carr, announced a process under the Energy
Innovation Program to explore the potential for on- and off-grid
applications for small modular reactor (SMR) technology in Canada.
https://www.canada.ca/en/natural-resources-canada/news/2018/02/canada_mapping_astrategyforthenextgenerationofnuclearreactortech.html
Parliamentary Secretary Rudd further stated, “A
stakeholder-driven roadmap will build upon their existing
groundwork to foster innovation and establish a long-term vision
for the industry, as well as to assess the characteristics of
different SMR technologies and how they align with
user-requirements and Canadian priorities. The roadmap will be an
important step in positioning Canada to advance next-generation
technologies and become a global leader in the emerging SMR
market.”
R. Bruce Duncan, CEO and Director of Canada
Carbon, commented, "The Company has now begun building its book of
business as evidenced by this initial agreement with Dunedin Energy
for this important initiative for Canada. This MOU represents over
13% of the Company's planned annual production of 1,500 tonnes per
annum as projected in the Preliminary Economic Assessment ("PEA")
filed to SEDAR on April 14th, 2016. The projected revenue per tonne
under the Dunedin MOU agreement represents a significant increase
over the revenue per tonne used in the PEA to determine the
economics of the Miller Project. The costs for the production of
nuclear purity graphite estimated in the PEA were CDN $6,880 per
tonne over the first five years of production."
Peter Lang, CEO of Dunedin Energy Systems Ltd,
stated, “Our primary focus was to secure a supply of nuclear
graphite required for the manufacture of our all-Canadian small
modular reactor design. We were delighted when our research team
identified what we believe to be the world's purest natural
graphite is available to us from a domestic Canadian source."
Cautionary Note: The April 14th
2016 PEA referenced herein is considered by Tetra Tech to meet the
requirements of a Preliminary Economic Assessment as defined by
Canadian Securities Administrators’ National Instrument 43-101 (“NI
43-101”) Standards of Disclosure for Mineral Projects. The economic
analysis contained in the technical report is based on Inferred
Resources (as defined in NI 43-101) and is preliminary in nature.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. There is no guarantee that all or
any part of the Mineral Resource will be converted into a Mineral
Reserve. Inferred Resources are considered too geologically
speculative to have mining and economic considerations applied to
them and to be categorized as Mineral Reserves (as defined in NI
43-101). Additional trenching and/or drilling will be required to
convert Inferred Mineral Resources to Measured or Indicated. There
is no certainty that the resource’s development, production and
economic forecasts on which the PEA is based will be
realized. The Company is currently not in a position to
make any production decisions as it has not yet obtained its
permits and is currently in a legal dispute with the municipality
of Grenville-sur-la-Rouge.
About Dunedin Energy Systems
Ltd.
Dunedin Energy Systems Ltd. was founded to lead
the development and commercialization of a very small nuclear power
plant to bring the many benefits of nuclear energy to the remote
communities and mines of Canada’s North. With current remote site
energy technologies becoming increasingly unsustainable,
unaffordable and environmentally undesirable, Dunedin Energy
Systems believes that nuclear technology can offer a clean energy
solution that will help the people and industries of the North to
achieve their full potential.
About Canada Carbon Inc.
Canada Carbon is in the process of planning and
permitting the development of its small footprint, environmentally
benign Miller Graphite Mine in Grenville-sur-la-Rouge P.Q. The
Miller graphite is readily purified to meet the exacting standards
required by the nuclear power industry, and is more than four times
purer than the best synthetic or natural nuclear graphites tested
in U.S. government nuclear development programs as reported by the
Company in its May 13th, 2015 press release. The Miller property is
minutes away from population centers, with a ready source of
skilled labour and support infrastructure. Located 104 highway
kilometres from the Port of Montreal, the project has ready access
to international markets. The Miller graphite will allow Canada
Carbon to provide a critical component of the green energy
revolution advancing around the world.
QUALIFIED PERSON
Steven Lauzier, P.Geo. OGQ1430, a Qualified
Person as defined by National Instrument 43-101 guidelines, has
reviewed and approved the technical content of this news
release.
CANADA CARBON INC.
“R. Bruce Duncan” CEO and Director
Contact InformationE-mail
inquiries: info@canadacarbon.comP: (604) 685-6375F: (604)
909-1163
“Neither 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.”
FORWARD LOOKING STATEMENTS:
This news release contains forward-looking statements, which relate
to future events or future performance and reflect management’s
current expectations and assumptions. Such forward-looking
statements reflect management’s current beliefs and are based on
assumptions made by and information currently available to the
Company. Investors are cautioned that these forward looking
statements are neither promises nor guarantees, and are subject to
risks and uncertainties that may cause future results to differ
materially from those expected. These forward-looking statements
are made as of the date hereof and, except as required under
applicable securities legislation, the Company does not assume any
obligation to update or revise them to reflect new events or
circumstances. All of the forward-looking statements made in this
press release are qualified by these cautionary statements and by
those made in our filings with SEDAR in Canada (available at
www.sedar.com).
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