Business
Cielo Enters into MOU to Build Refinery in Medicine Hat, AB and Grants Option for a Further Refinery in Brooks, AB
VANCOUVER, BC / ACCESSWIRE / February 26, 2019 / Cielo Waste Solutions Corp. (CSE: CMC) ("Ci...
About this update from Cielo Waste Solutions Corp.
[{"type":"text","content":"Cielo Enters into MOU to Build Refinery in Medicine Hat, AB and Grants Option for a Further Refinery in Brooks, ABVANCOUVER, BC / ACCESSWIRE / February 26, 2019 / Cielo Waste Solutions Corp. (CSE: CMC) (\"Cielo\" or the \"Company\") announces that Renewable U Energy Inc. (\"Renewable U\") has exercised its option to build a renewable diesel refinery in the City of Medicine Hat with Cielo and to that end has incorporated and funded a new company, Renewable U Medicine Hat Inc. (\"R.U. Medicine Hat\"), which has entered into a binding Memorandum of Understanding with Cielo (''Medicine Hat MOU''), pursuant to which the parties are working towards entering into a joint venture agreement (\"JV Agreement\") that will provide the framework to build and operate Cielo's third joint venture refinery that converts garbage to high grade renewable fuels (Project\").In consideration for the opportunity to enter into the JV Agreement with Cielo and undertake the Project, R.U. Medicine Hat has paid to Cielo a $250,000.00 fee (''Fee'') to secure the territory of Medicine Hat, AB and the surrounding area encompassing a 50 km radius. Cielo has received the Fee.The general terms to be incorporated into the JV Agreement are substantially the same as those previously announced terms for the joint venture refineries to be located in Grande Prairie and Calgary, AB which include the following guidelines:a. R.U. Medicine Hat will be solely responsible for financing 100% of the costs associated with acquiring the land, building and commissioning (''Project Costs'') of the initial joint venture refinery in Medicine Hat AB (JV Refinery\").b. Cielo will manage the Project overall, overseeing the planning, construction, commissioning and operation of the JV Refinery and will receive a management fee for the construction of the JV Refinery equal to 7% of the Project Costs subject to certain exclusions, and will continue to receive management fees once operations begin based on industry standards.c. In the event that Cielo does not execute the definitive agreement for Medicine Hat, Alberta, subject to an exclusion, by May 31, 2019, Cielo has agreed, subject to applicable laws and policies, to issue R.U. Medicine Hat common shares of Cielo in lieu of returning the Fee, valued at the greater of $0.25 per share and the average closing price of Cielo's shares during...