/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
VANCOUVER, BC, Sept. 28,
2022 /CNW/ - Klimat X Developments Inc. ("Klimat
X" or the "Corporation") (TSXV: KLX) is pleased to
announce that, further to its press release dated August 16, 2022, it has closed the acquisition
(the "Acquisition") of certain carbon credit development
rights and other revenues generated through the sale of timber and
other biological assets for approximately 32,000 hectares of land
located in Sierra Leone (the
"Assigned Rights") from Forest and Mangrove Protection Ltd.
("FMPL") pursuant to the project rights assignment agreement
dated August 12, 2022 (the
"Project Rights Assignment Agreement") entered into between
Klimat X and FMPL.
The aggregate consideration for the Acquisition was $655,912.00 USD, paid in cash by Klimat X to FMPL
as reimbursement for expenses associated acquisition of the carbon
rights to the assets. No securities of Klimat X were be issued in
connection with the Acquisition. The Acquisition constituted a
"Reviewable Transaction" for the purposes of TSXV Policy 5.3-
Acquisitions and Dispositions of Non-Cash Assets ("Policy
5.3"), as it is a "Related Party Transaction" on the basis that
FMPL is wholly-owned by a director and significant shareholder of
Klimat X, Mr. Kevin Godlington.
In accordance with Policy 5.3, the TSXV approved the Acquisition
on September 26, 2022.
"These investments expand our reach in a country where we have
very strong foundations. We have secured a much larger land area
for our trailblazing rewilding programme. The addition of a
large-scale mangrove project to our portfolio in Sierra Leone is extremely encouraging and we
expect it will establish a strong precedent for other large-scale
mangrove investments in the region" - Dr. James Tansey, Chief Executive Officer.
The Acquisition more than doubles the land area under
development by the Corporation in Sierra
Leone. The extension of Klimat X's reach into mangrove
protection and restoration projects in Sierra Leone also represents a scale up and a
potential opportunity to realize significant earlier revenues from
a mangrove conservation project. Klimat X will invest in the carbon
credit development costs associated with implementing a large-scale
rewilding project under the relevant Verra protocol (the
"Project"). Klimat X anticipates planting 400 hectares by
the beginning of October, has mapping underway of the mangrove
areas and has been developing nursery and planting plans. An
initial feasibility study was completed in July by Silvestrum
Climate Associates, who are global leaders in coastal and mangrove
projects. Coastal mangroves in Sierra
Leone are highly productive and can sequester 10-20 tonnes
of CO2e per hectare per annum, storing significant
volumes of carbon in the sediment. If validated, it is anticipated
that this Project could produce millions of tonnes of high value
carbon credits over the life of the Project.
The Corporation has an active pipeline of projects in
Sierra Leone, Guyana and the State
of Yucatan, Mexico. Projects are developed in partnership
with state, national and indigenous governments through fair and
transparent revenue sharing agreements.
About Klimat X
Klimat X carries on the business of developing validated and
verified carbon credits from afforestation and reforestation of
degraded land areas and marine ecosystems, including mangroves, for
sale into international voluntary carbon markets. In contrast to
streaming and royalty companies, Klimat X works upstream as a
direct owner and operator of projects, addressing a key supply
constraint the current market and the rapidly growing demand for
carbon credits in global voluntary and regulated markets. The
Corporation intends to achieve this by investing in the
exploration, restoration and management of terrestrial and marine
systems that can either be protected to enhance the sequestration
of greenhouse gases or restored from a degraded status to fully
productive ecosystems. Klimat X will draw on the experience of a
senior executive team and board that provide access into key target
jurisdictions through relationships in the mining and natural
resources sectors, combined with decades of experience in carbon
markets. Klimat X plans to deploy capital at risk under various
arrangements (including cooperation, assignment and production
sharing agreements) with large land owners and governments in
various suitable jurisdictions around the world.
Reader Advisory
The TSXV has in no way passed upon the merits of the Acquisition
or the Project Rights Assignment Agreement and has neither approved
nor disapproved the contents of this news release.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. Any statements that are contained in this press
release that are not statements of historical fact may be deemed to
be forward-looking statements. Forward-looking statements are often
identified by terms such as "may", "should", "anticipate", "will",
"intends" "expects" and similar expressions which are intended to
identify forward-looking information or statements. More
particularly and without limitation, this press release contains
forward looking statements and information concerning the
Acquisition and the ongoing business of the Corporation. Klimat X
cautions that all forward-looking statements are inherently
uncertain, and that actual performance may be affected by a number
of material factors, assumptions and expectations, many of which
are beyond the control of Klimat X. The reader is cautioned that
assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted as a
result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of Klimat X.
The reader is cautioned not to place undue reliance on any
forward-looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this press
release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release
are made as of the date of this press release, and Klimat X does
not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly
required by securities law.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES, AND DOES NOT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL
ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT
BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO
U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in any
jurisdiction.
SOURCE KLIMAT X Developments Inc.
