Purebase acquires right to access 100M tons of clay for SCM project
Purebase Corporation (OTCQB:PUBC) announced an agreement to acquire access to up to 100 million tons of raw clay materials from U.S. Mine LLC for $50 million.
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Rhea-AI Summary
Purebase Corporation (OTCQB:PUBC) announced an agreement to acquire access to up to 100 million tons of raw clay materials from U.S. Mine LLC for $50 million. This acquisition aims to enhance the company’s production of lower carbon cements, addressing the growing demand for sustainable construction materials. The payment will be made through a convertible promissory note. CEO Scott Dockter emphasized the importance of this move in meeting environmental demands. Newbridge Securities Corporation advised on the transaction, with legal counsel from The Crone Law Group.
Positive
- Acquisition of access to 100 million tons of clay can significantly enhance production capabilities.
- Targeting the growing market for lower carbon cements aligns with environmental sustainability trends.
- Potential for revenue growth from the demand for green construction materials.
Negative
- Acquisition cost of $50 million may increase financial strain if returns are delayed.
- Dependence on the successful integration of new materials into existing product lines.
Details
News Market Reaction – PUBC
The recorded move for PUBC in the trading session of this news was +18.60%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
IONE, CA, May 28, 2021 (GLOBE NEWSWIRE) -- Purebase Corporation (OTCQB:PUBC) (“Purebase” or the “Company”), a diversified resource company, headquartered in Ione, California, announced today that it has entered into an agreement with U.S. Mine LLC to acquire the right to access up to 100M tons of certain raw clay materials. These clay materials will be targeted for use as a supplementary cementitious material (SCM) for use in the production of lower carbon cements.
In consideration for this right to access these raw clay materials, Purebase shall pay
Purebase’s CEO, Scott Dockter, stated, “Acquiring the rights to this amount of material is the next step towards bringing our SCM products to market, at a time when this country and many other countries are demanding products that will help lower carbon emissions. We believe the demand for greener cements justifies the need for Purebase to obtain the rights to access up to 100M tons of clay materials from US Mine LLC.”
Newbridge Securities Corporation served as a financial advisor on the transaction and The Crone Law Group acted as the Company’s legal counsel.
About Purebase Corporation
Purebase Corporation (OTCQB: PUBC) is a diversified resource company that acquires, develops and markets minerals for use in the agriculture, construction and other specialty industries.
Contacts
Emily Tirapelle - Purebase Corporation | emily.tirapelle@purebase.com, and please visit our corporate website and subscribe to our upcoming Newsletter – www.purebase.com/newsletter
Safe Harbor
This press release contains statements, which may constitute “forward-looking statements.” Those statements include statements regarding the intent, belief, or current expectations of Purebase and members of its management team, as well as the assumptions on which such statements are based. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that may cause actual results to differ from those anticipated are discussed throughout the Company’s reports filed with Securities and Exchange Commission which are available at www.sec.gov, as well as the Company’s web site at www.purebase.com. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results.
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