Joshua Gold Resources Inc. - New Business Project
2014-09-30 08:00 ET - News Release
TORONTO, ON -- (Marketwired) -- 09/30/14
Joshua Gold Resources Inc. ("Joshua" or the "Company") (PINKSHEETS: JSHG) announces that, with a view to diversifying its business projects, it has entered into a Letter of Intent (the "LOI") with NexGen Oil Inc. and Clean Oil Innovations Inc. (collectively "Clean Oil") to acquire the Canadian rights to Clean Oil's innovative and proprietary diluent, which provides an extremely efficient and cost effective means of extracting more oil from a well or reserve (be it oil sands, shale etc.) than current techniques.
Clean Oil's proprietary KBT-1 facilitates a reduction in the need for steaming, or super heating the ground or reserve area, thus eliminating the unnecessary burning of vast quantities of natural gas and the resultant carbon footprint. KBT-1 can also help in eliminating the immense and polluted "tail ponds" associated with current oil sand extraction techniques. The use of KBT-1 should help to mitigate fears of water table contamination through these tail ponds.
"KBT-1 is revolutionizing not only the production and transporting of heavy oils and oil sands, but will go a long way towards minimizing the negative impact to our air and water supplies created by current extraction and transporting methods. KBT-1 produces more oil, for less money, than any other known product or process, while at the same time practicing great environmental stewardship," commented Clean Oil's president, Todd Thompson.
Joshua's acting president, Ben Fuschino, commented, "I have been dealing with Mr. Thompson for quite a while, and after seeing KBT-1 in action in a demonstration in California, I am extremely excited to be a part of this revolutionary development for our Company."
The LOI presents the terms and conditions of a proposed agreement between the parties whereby Joshua Gold Resources Inc. will acquire the Exclusive Canadian Rights to KBT-1 from Clean Oil in exchange for 11,000,000 Common Shares of Joshua. Terms and conditions of the proposed agreement include:
1) Structure: The parties intend to enter into an agreement in which Joshua will issue 11,000,000 shares of its common stock in exchange for the Exclusive Canadian Rights to KBT-1,
2) Testing: Joshua will work with Clean Oil to raise the capital to set up a beta-test site for KBT-1 in Canada,
3) Second Phase: Following successful completion of the anticipated beta-test, the Parties agree it is their intention for Joshua to then acquire and merge with Clean Oil
Completing the proposed agreement between the parties shall include, but will not be limited to, due diligence, obtaining any and all required regulatory approvals, and the implementation of a new slate of directors and officers. Until the new slate of officers and directors has been approved, Ben Fuschino is the acting president of the Company, replacing Ben Ward who had previously resigned.
The Company cautions that this LOI represents a preliminary step to a formal agreement that is being negotiated concurrently, to be entered into by the Company and Clean Oil.
Further details are expected shortly.
On Behalf of the Board of Directors,
Ben Fuschino
Acting President |
