June 19, 2020
• EarthRenew initiates feasibility study to assess the viability of its first potential US location
• The partner’s site is one of the largest feedlots in the southwestern US
• The site is projected to provide EarthRenew with strategic access to the US Southwest, one of the largest organic markets in the world
• The partner is expected to be an active collaborator in the feasibility study
• The goal of the feasibility study is to develop the key terms for a letter of intent (LOI)
Toronto, June 19, 2020 (GLOBENEWSIRE) – EarthRenew Inc. (CSE:ERTH | OTC:VVIVD | WKN:A2P6MB) (“EarthRenew” or the “Company”) is pleased to announce that it has identified its first potential site in the US. The site is one of the largest feedlots in the southwestern US, finishing over 200,000 head of cattle per year.
We believe that the site would provide the Company with a showcase facility in a strategic operational location, considering the southwestern US is the one of the world’s largest organic farming markets. The Company estimates that this site could be up to four times the size of EarthRenew’s Strathmore, Alberta facility with an estimated capital cost in the range of $37 to $42 million CAD. Further, EarthRenew estimates that it could produce over 70,000 tonnes per year of organic fertilizer pellets at a facility of this scale.
As per the terms of the initial engagement, EarthRenew will work with the potential partner to conduct a feasibility study. The feasibility study will cover, among other things, a review of the site, the availability of requisite utilities, the regulatory environment, preliminary engineering considerations and details of the organic fertilizer market to determine overall viability. The study is expected to take two months and cost $50,000 and will identify the key terms for an LOI between the Company and the potential partner. We anticipate key terms of the LOI will include: terms for lease and shared services, parameters for feedstock delivery and co-marketing of end- products and terms for potential electricity sales to the partner for its electrified fences.
“We are incredibly excited to formally begin evaluating new facility locations for EarthRenew. Our potential partner is very aligned with our sustainability goals and is excited for us to become a solution for their manure production,” said EarthRenew’s CEO, Keith Driver. Mr. Driver continued, “This new facility could potentially produce three-to-four times what our Strathmore facility is capable of and provide us with a beachhead opportunity to serve the vast southwestern US market.”
EarthRenew transforms livestock waste into a high-performance organic fertilizer to be used by organic and traditional growers in Canada and the United States. Located on a 25,000 head cattle feedlot, our flagship Strathmore plant is capable of producing up to four megawatts (MW) per hour of low-cost electricity powered by a natural gas fired turbine. The exhausted heat from the turbine is used to convert manure into certified organic fertilizer.
For additional information, please contact:
CEO of EarthRenew
Phone: (403) 860-8623
Cautionary Note regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to EarthRenew’s potential partnership with a US partner for a new EarthRenew facility in the US Southwest, fertilizer pellet production capacity at the new facility, estimated capital costs for the new facility, the terms of the LOI, the contents, timing and cost of the feasibility study, our ability to sell products in the organic fertilizer market in US Southwest, our ability to execute our business plan, and our proposed business activity. Generally, forward- looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; regulatory risks; and other risks of the energy and fertilizer industries. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward- looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.