Highlights:
- EarthRenew announces preliminary results from feasibility study with potential partner
- The Partner’s site is one of the largest feedlots in the southwestern U.S. and could offer a strategic geographic foothold in the U.S.
- The study identified key timelines for initial regulatory permits
- Upon completion of the study, we plan to enter into a letter of intent with the Partner (the “LOI”)
TORONTO, Aug. 19, 2020 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE:ERTH) (“EarthRenew” or the “Company”) announced on June 19, 2020 that it had identified a partner (the “Partner”) for its first potential site for an EarthRenew facility in the U.S., and that it was initiating a feasibility study to assess the viability of the location. The site is one of the largest feedlots in the southwestern U.S., finishing over 200,000 head of cattle per year. The site is projected to provide the Company with a strategic operational location since the southwestern U.S. is one of the world’s largest organic farming markets. With an anticipated modular design, we estimate that the production capacity at the facility constructed at this site could be expanded from an initial capacity similar to that of our Strathmore facility to up to four times its capacity. For more information on the potential site, including estimated costs, please see the Company’s press release dated June 19, 2020, which is available under the Company’s profiles on SEDAR at www.sedar.com and www.thecse.com.
The preliminary results of the feasibility study indicate that there are no significant regulatory barriers that will inhibit EarthRenew from moving forward with the Partner. Local county, air, environmental, and electricity permitting requirements have all been considered by third-party consultants and initial results indicate that permitting could take between 12 and 18 months.
The Company’s next step is to finalize key terms for the LOI, which is expected to 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.
“The early results of our study, including feedback from our third-party consultants, are extremely encouraging. We know that different regulatory regimes can prove difficult, and understanding this process before we make the decision to move forward will definitely help streamline permitting and development,” said EarthRenew’s Director, Catherine Stretch. Ms. Stretch continued, “This key site could, in the future, allow us to service key accounts in the southwestern United States.”
Ms. Stretch further added, “We look forward to finalizing our feasibility study, signing a letter of intent with the Partner, and finishing preliminary engineering later this quarter.”
