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  • Klimat X Developments Inc.

Klimat X Finalizes Commercial Terms for Sierra Leone Pre-Purchase Agreement

VANCOUVER, BC, June 15, 2023 /CNW/ - Klimat X Developments Inc. ("Klimat X" or the "Company") (TSXV: KLX) a company that 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, is pleased to announce it has finalized binding commercial terms with a Fortune 100 (the "Buyer") company to pre-purchase carbon credits from the Company's Sierra Leone Rewilding Project.

  • The pre-purchase agreement will cover the remaining capital costs of the first 5,000 ha of native species planting, with 1,000-1,200 ha of planting anticipated to be completed by the end of the 2023 season and with the PDD to be validated in 2023.

  • The first of three USD $500,000 payments for 2023 to Klimat X is scheduled for transfer within four weeks.

  • Under the pre-purchase financing structure, US$2.5m of investment is repaid in tons of carbon credits issued at a pre-agreed price by the project. The initial project area will generate an IRR of up to 20% based on current modelling assumptions and pricing scenarios.

  • The Buyer has the option to purchase the balance of the 75-80% of the carbon credits from the first 5,000 ha of planting at small discount to a mutually agreed carbon index price that reflects the scale and volume of high-quality reforestation projects in the market.

  • The Buyer has a time limited Right of First Offer to pre-purchase credits from the remaining 20,000 ha within the project area.

  • The Company has committed to produce and validate the credits under the highest standards of the Verra protocol, including their Climate, Community, Biodiversity standards (CCB).

  • The Company is committed to equitable revenue sharing arrangements with local smallholders and a transparent Free Prior and Informed Consent process monitored by Namati, an independent third party non-governmental organization.

  • Project implementation will restore degraded forest land owned by smallholders, providing income from carbon markets and providing employment to thousands of seasonal workers in a region with high unemployment and incomes below the poverty line.

  • The first 5,000 ha is anticipated to produce 1.6-1.9m tonnes of carbon credits during the first 30 years, and over the full lifespan and scale-up of the project, it has the potential to produce up to 15m tonnes of credits from 25,000 ha. Independent carbon market forecasts for restoration projects of this type indicate pricing of USD20-30/ton as demand grows for high quality credits. The IMF states that prices as high as USD$75 per tonne are needed by 2030 when considering regulatory and voluntary markets.

  • Recent research continues to indicate rapid growth in the size of the carbon market, with Boston Consulting Group predicting five-fold growth by 2030.

  • The project is the first of its kind in Sierra Leone and a model for carbon finance and social development across the region.

This major commercial milestone for Klimat X proves the Company's investment thesis that large-scale jurisdictional projects can be developed and pre-sold to wholesale buyers seeking to meet their Net Zero obligations. The milestone demonstrates that the company can use its equity to de-risk projects to the stage draft PDD stage where the execution risk can be shared with the world's largest corporate clients.

The commercial agreements have been submitted for final signature by both parties and the first three payments to Klimat X of USD $500,000 are scheduled for the balance of 2023. Approximately 400ha were planted in 2022 and planting of a further 800-1,000ha is already underway.

Dr. James Tansey, CEO of Klimat X stated 'Klimat X has designed its projects to meet the needs and expectations of large corporate buyers who are willing to share investment and operational risk with our company. These final commercial terms demonstrate that our model can produce significant volumes of saleable credits through jurisdictional projects. We have the potential to expand the rewilding and mangrove operations that are currently underway across Sierra Leone and the region. These projects have already attracted commercial interest from multiple parties. We are expanding our footprint in West Africa and have additional projects under development in Yucatan, Mexico and Suriname. We are proud to be developing projects that provide both ecological and economic benefits to the world and our shareholders as one of the few impact-focused listed companies.

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 Company 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 landowners and governments in various suitable jurisdictions around the world.

On behalf of the Board of Directors

"James Tansey" James Tansey Chief Executive Officer

Cautionary Note Regarding Forward Looking Statements

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 (collectively "forward looking statements") 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 future generation of revenues from the sale of carbon credits to a large corporate client and the ongoing business of the Company. 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 expectations and assumptions concerning the Company and future carbon pricing, operational risk from rewilding activities, political instability, pest and natural hazard events, supply chain challenges, and other broad market and geopolitical threats. A full disclosure of the risks is provided in the company's filing statements. 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 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, Chief Executive Officer, Email:,

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