KLIMAT X ANNOUNCES PROPOSED ACQUISITION OF REWILDING AND MANGROVE PROJECT IN SIERRA LEONE
Updated: Feb 10
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, BC, Aug. 16, 2022 /CNW/ - Klimat X Developments Inc. ("Klimat X" or the "Corporation") (TSXV: KLX) is pleased to announce that it has entered into a carbon credit streaming agreement dated 15th August, 2022 (the "Carbon Credit Agreement") to acquire (the "Acquisition") carbon credit development rights for approximately 32,000 hectares of land located in Sierra Leone (the "Carbon Credit Rights") from Forest and Mangrove Protection Ltd. ("FMPL"). The Acquisition is intended to significantly expand the Corporation's rewilding forestry projects, which sequester carbon dioxide and produce carbon credits. The Acquisition is based on the reimbursement of costs assumed by FMPL associated with securing land development rights under Sierra Leone law. The Acquisition also reimburses FMPL for the costs to date for the mapping work and for initial feasibility studies related to the development of a potential coastal mangrove project that has the potential to generate significant carbon credits from conservation and restoration activities. FMPL will receive no further consideration as part of this transaction. This Acquisition is in addition to the carbon credit development rights to the minimum 25,000 hectare area in Sierra Leone secured from Rewilding Maforki Ltd. ("RML") during the recent "Change of Business" transaction (as such term is defined in TSX Venture Exchange ("TSXV") Policy 5.2) (the "COB") and subsequent re-activation of the Corporation to the TSXV completed on July 20th, 2022. Additional details regarding closing of the COB and the carbon credit rights purchased from RML are contained in press releases of the Corporation dated June 29, 2020 and July 19, 2022.
Acquisition of Carbon Credit Rights
Pursuant to the Carbon Credit Agreement, Klimat X will assume FMPL's cost of the land rights acquisition and all carbon credit development costs associated with implementing a large-scale rewilding project under the relevant Verra afforestation/reforestation protocol (the "Project"), in exchange for in exchange for the Carbon Credit Rights and other revenues generated through the sale of timber and other biological assets produced from, or in connection with the Project. 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.
Klimat X is focused on investing in nature-based solutions including reforestation, conservation and blue carbon projects including mangroves. 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. "These investments expand our reach in a country where we have very strong foundations as a company. 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 purchase price for the Acquisition is US$655,912, to be paid in cash. The Acquisition constitutes 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.
There is no finder's fee payable in connection with the Acquisition. Closing of the Acquisition remains subject to TSXV approval in accordance with Policy 5.3 and certain closing conditions specified in the Carbon Credit Agreement.
About Klimat X
Klimat X develops validated & verified carbon credits from the afforestation & reforestation of degraded land areas, marine ecosystems and mangroves for sale into international voluntary carbon markets. Klimat X works upstream as a direct owner and operator of projects addressing a key constraint in the current market to supply the rapidly growing demand for carbon credits in global voluntary & regulated markets. Klimat X invests 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. We draw on the experience of a seasoned senior executive team and board that provides access to 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 through arrangements (including cooperation, assignment and production sharing agreements) with large landowners and governments in jurisdictions around the world.
The TSXV has in no way passed upon the merits of the Acquisition or the Carbon Credit 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, including the completion of the Acquisition and the timely receipt of all required TSXV, third-party and regulatory approvals and exemptions (as applicable). 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.
For further information: Klimat X Developments Inc., James Tansey, Suite 390, 1050 Homer Street, Vancouver, British Columbia V6B 2W9, Phone: 1-604 562 4546