Canada Coal Signs Non-Binding LOI with Potash Ridge Corporation for Valleyfield Fertilizer Assets in Quebec
November 20 2017 - 7:00AM
Canada Coal Inc. (the “Company” or “Canada Coal”),
(TSX-V:CCK) announces that it has signed a non-binding Letter of
Intent (“LOI”) with Potash Ridge Corporation (TSX:PRK) to
potentially purchase, joint venture or otherwise complete such
other form of transaction that may be mutually acceptable to the
parties for the assets of Valleyfield Fertilizer Corporation, a
wholly owned subsidiary of Potash Ridge.
The LOI contains no proposed terms or
compensation for any potential transaction between the two
parties. The LOI provides for a 90-day period of exclusivity,
which will allow both parties to exchange information and maintain
confidentiality as each party seeks to determine whether mutually
beneficial business opportunities may exist. The Company will
update the market if and when the relationship with PRK advances to
anything more material, or if the LOI terminates (whether by mutual
agreement or upon the expiry of the 90-day term). Should any
specific transaction be agreed to among the parties, the issuer may
be subject to additional requirements pursuant to TSX Venture
Exchange policies.
About Valleyfield Fertilizer
Corporation
Valleyfield Fertilizer Corporation
(“Valleyfield”) was incorporated in July 2015 as a Quebec
registered company under the name Société D’engrais de Valleyfield
Inc.
Valleyfield intends to build a fertilizer
manufacturing facility in Salaberry-de-Valleyfield, Quebec to
produce 40,000 tonnes per year of potassium sulphate, also referred
to as ‘SOP’ (sulphate of potash). The location, west of Montreal on
the St. Lawrence River, provides excellent rail, road, and seaway
access in a jurisdiction which is attracting many synergistic
industrial companies. SOP is regarded as a reliable low-chloride
fertilizer that provides two key nutrients, potassium and sulphur,
essential for the life cycle of high value, chloride-intolerant
crops including most fruits, vegetables and nuts. This differs from
the more well-known potash or potassium chloride fertilizer, which
is best suited for corn and grain crops.
Valleyfield has:
- Secured a fixed price EPC (engineering, procurement and
construction) contract with SNC-Lavalin for the construction of
Valleyfield;
- Obtained a letter of intent with a leading integrated
agricultural organization for up to 25% of the annual production
of SOP to serve Eastern Canada;
- Signed an off-take and funding arrangement with Jones-Hamilton
Co., a leading U.S.-based chemicals company, whereby Jones-Hamilton
will fund the hydrochloric acid equipment for Valleyfield and
exclusively sell 100% of the hydrochloric acid production from
Valleyfield for 10 years;
- Signed a five-year contract with a major North American
chemical company for 100% of Valleyfield's sulphuric acid
requirements;
- Engaged Montreal-based Novopro Projects Inc. to act as lead
Owner's Engineer to advance the project through final engineering
and construction completion.
On behalf of the Board of Directors
“R. Bruce Duncan”
President and Chief Executive
OfficerPhone:
1-604-685-6375Website:
www.canadacoal.comE-mail:
info@canadacoal.com
“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).