Westcore Announces Letter Of Intent With Quantex For Coal-To-Liquids Process
CALGARY, Alta.
Westcore Energy Ltd. has announced it has entered into a letter of intent with Quantex Research Corporation in respect of a proposed licence to Westcore of the Quantex coal-to-liquids process.
Some of the highlights of the proposed licence include:
- The licence will provide for the right to use the Quantex coal-to-liquids process within the provinces of Saskatchewan and Manitoba. The licence will become effective upon the entering into of a definitive formal agreement between the parties targeted for on or before Sept. 30. The licence will include a temporary exclusivity right to use the Quantex coal-to-liquids process within the provinces of Saskatchewan and Manitoba, which exclusivity period is expected to be effective for a period of three to 3.5 years from the date of issuance.
- Upon effect, the license will entitle Westcore to build and operate one or more commercial plants using the Quantex coal-to-liquids process, to a maximum aggregate production volume of 100,000 barrels per day of the petroleum and carbon-based or related products produced using this process.
- As consideration for the license, Westcore will pay a license fee and a royalty to Quantex.
As noted in Westcore’s prior news releases, Westcore has delivered a 500 kilogram sample of coal to the Quantex laboratory in Morgantown, West Virginia. This sample is in queue for analysis and review by Quantex and this process is expected to occur by the end of September.
The timing for completion of this testing has been somewhat longer than initially anticipated due to increased activity levels at the Quantex facility. The definitive agreement is expected to be finalized after completion of due diligence and all testing and analysis of Westcore’s coal samples has concluded. Paul Conroy, president and CEO, states: “We are extremely pleased to have entered into this letter of intent with Quantex, which represents a formidable milestone in our company’s existence and the pursuit of our ultimate objectives for the development and production of our coal projects.
“After several months of discussions, we are delighted to have established the framework for an exclusive license with Quantex for the use of its revolutionary coal-to-liquids process. We look forward to receiving the final results of our coal sample once they are completed and proceeding from there towards a definitive agreement with Quantex and the deployment of the coal-to-liquids process into the provinces of Saskatchewan and Manitoba,” Conroy said.
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