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Foyson to license ICE waste conversion technology

November 11, 2014, Calgary, Alta. – Foyson Resources Limited has entered into an agreement with Integrated Green Energy Limited (IGE) to acquire exclusive licenses to commercialize initially IGE's plastics to fuel technology and then its biomass to both fuel and energy conversion technologies. 


November 11, 2014
By Canadian Biomass

Topics

November 11, 2014, Calgary, Alta. – Foyson Resources Limited
has entered into an agreement with Integrated Green Energy Limited (IGE) to
acquire exclusive licenses to commercialize initially IGE's plastics to fuel
technology and then its biomass to both fuel and energy conversion
technologies. 

 

TVI Pacific Inc., a Calgary-based resource company focusing
on the Philippine and southeast Asia markets, holds a 20.04% equity interest in
Foyson, and is a partner on the Joint Amazon Bay Iron Sands Project in Papua
New Guinea,

 

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Clifford James, President and Chief Executive Officer of
TVI, stated: "Given that TVI holds a significant stake in Foyson, we are
pleased to see their intention to enter into a potential cash flowing business
with IGE, which could increase the value of our investment and represent a
potential source of funding for our Amazon Bay Iron Sands joint venture
project."

 

IGE is an Australian company with a focus on the development
of its waste conversion technologies to produce sustainable energy
resources.  The technologies are
applicable to both processing non-recyclable and waste plastics-to-fuels and for
power generation in remote locations by processing a hybrid biomass.   IGE currently operates a semi-commercial
demonstration plant producing industry standard diesel suitable for use in
conventional diesel engines.

 

As set out in the non-binding term sheet signed between
Foyson and IGE in September 2014, Foyson intends to acquire exclusive licenses
to use IGE's waste conversion technology in Australia, New Zealand, China,
North America, India, South East Asia, Papua New Guinea and Fiji.  Secondly, Foyson intends to acquire
non-exclusive licenses to use IGE's technology in other jurisdictions globally,
with IGE to grant no more than three licenses to any party in any
jurisdiction.  Thirdly, Foyson intends to
acquire IGE's existing pilot-scale plastics to fuel conversion plant at
Berkeley Vale on New South Wales' central coast.  The intention of the term sheet is that
Foyson will be required to construct and operate new plants based on the
existing Berkeley Vale plant over the next four years.

 

Financial Details

The term sheet also required Foyson to carry out two private
placements with parties associated with IGE for a total of 235 million
shares.  The first of these placements,
involving a placement of 135 million shares at $0.0025 per share, was completed
in October 2014, resulting in TVI's original equity interest of 23.01% being
diluted to 20.04%.

 

The term sheet states that the remuneration to be paid by
Foyson for IGE will be performance based. To obtain the maximum remuneration in
terms of Foyson shares and options, the operating facilities utilizing the IGE
technology must earn annual EBITDA in excess of $20 million.


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