Quadrise Fuels International PLC Material Transfer & Cooperation Agreement (0667V)

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RNS Number : 0667V

Quadrise Fuels International PLC

29 November 2019

Quadrise Fuels International plc

("Quadrise", "QFI" or the "Company")

Material Transfer & Cooperation Agreement

Quadrise is pleased to announce it has signed a Material Transfer & Cooperation Agreement (the "Agreement") with an international chemicals and mining group headquartered in Morocco (the "Client").

Under the Agreement, Quadrise and the Client will work together in a joint project team, to carry out an MSAR(R) trial on a pilot plant test facility located at one of the Client's facilities in Morocco and then complete technical and economic feasibility studies for demonstration tests on commercial units owned by the Client that will be covered by future agreements.

The first phase of work to be carried out under the Agreement includes an MSAR(R) trial on a pilot plant unit on a shared cost basis to be completed by the end of Q1 2020.

The second phase, subject to the Client's approval of a successful outcome for the first phase, includes Quadrise undertaking feasibility studies in preparation for commercial scale trials on an industrial unit and a steam boiler, owned and operated by the Client, which will be carried out on a paid basis. Any future commercial MSAR(R) trials with the Client would be subject to new agreements.

Commenting on this agreement Mike Kirk, Executive Chairman of QFI, said:

"We are very pleased to have entered into this Agreement with this major industrial group in Morocco, which is a world leader in the sectors in which it operates and is a material consumer of fuel oil. We are looking forward to working with the Client's team in Morocco to develop and deliver the MSAR(R) pilot trial and feasibility studies and, ultimately to demonstrate the wider potential for MSAR(R) use in the industrial sector, in addition to the power and marine markets. We are confident that we will successfully demonstrate the economic and environmental benefits of MSAR(R) and, therefore, be able to progress through to commercial supply of MSAR(R) to the Client in due course."

Summary of Agreement

Under the terms of the Agreement, for the first phase Quadrise is responsible for the supply of MSAR(R) fuel, related equipment and engineering services to enable the initial testing at the Client's pilot plant facility. The Agreement provides for equal cost sharing between the parties in relation to costs of equipment, fuel, additives and transportation, such cost currently estimated to be approximately GBP16,000. Quadrise will provide the Client with a written report after the conclusion of the pilot plant test and, based on the findings, the Client will make a decision on progressing to phase 2.

Subject to the Client's approval and a successful outcome for the first phase, under the second phase Quadrise will be responsible for undertaking feasibility and engineering studies for commercial trials of MSAR(R) in a commercial scale industrial unit and steam boiler owned and operated by the Client. Quadrise will be paid a sum of GBP100,000 by the Client, at agreed stages for this work. Any future demonstration tests on commercial units owned by the Client will be covered by new agreements.

The Agreement is for a term of one year, unless mutually extended, and may be terminated by mutual agreement or by one party if a breach of the Agreement has occurred.

For further information, please refer to the Company's website at www.quadrisefuels.com, or contact ir@quadrisefuels.com or phone:

 
Quadrise Fuels International Plc 
Mike Kirk, Executive Chairman          +44 (0)20 7031 7321 
Jason Miles, Chief Operating Officer 
 
Nominated Adviser 
Cenkos Securities plc 
Dr Azhic Basirov                       +44 (0)20 7397 8900 
Ben Jeynes 
 Katy Birkin 
 
Joint Brokers 
Peel Hunt LLP 
Richard Crichton                       +44 (0)20 7418 8900 
David McKeown 
 
Shore Capital Stockbrokers Limited 
Toby Gibbs 
 Fiona Conroy                          +44 (0)20 7408 4090 
 
  Public & Investor Relations 
FTI Consulting 
Ben Brewerton                          +44 (0)20 3727 1000 
Ntobeko Chidavaenzi

The information communicated within this announcement was deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 prior to the release of this announcement. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

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END

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