MONTREAL, QUEBEC - Carbon2Green Corporation (the 'Corporation' or 'Carbon2Green') (TSX VENTURE: CGN) is proud to announce the conclusion of an agreement with Achrisia Ameriques Inc. to structure the financing of the entire jatropha project in Democratic Republic of the Congo ('DRC') through World Sports Alliance ('WSA') which has already expressed its interest in the project and indicated guidelines for its financial involvement. The proposed financing, subject to customary conditions including due diligence, would proceed in accordance with the public-private partnerships format to intervene between the DRC and WSA following the WSA project financing model.
The total required investment for this project, which has been presented to the Corporation's shareholders over the past year, is valued at CDN$22,000,000. Funding is linked to the production of jatropha oil from the Corporation's current project in the DRC. The Corporation's management will act as lead partner in the public-private partnership for managing daily operations. In addition, following the acceptance of a production program by the DRC, an additional protocol must be signed between the public-private partnership and the DRC, as well as a long term sovereign guaranty to be issued by the DRC to the public-private partnership in order to guaranty the purchase by the DRC of the produced biodiesel at a pre-negotiated price per liter between the parties, including an indexing formula. The sovereign guaranty will be used by the public-private partnership to fund the project.
As the project operator, Carbon2Green will receive twenty-five percent (25 %) of net profits from the production of jatropha oil. Carbon2Green will also retain full ownership of carbon credits to be generated by the project. In the event of a successful funding sought by Achrisia Ameriques Inc., the latter will receive 5% of the total funding.