Purebase acquires right to access 100M tons of clay for SCM project

Rhea-AI Summary

Purebase Corporation (OTCQB:PUBC) announced an agreement to acquire access to up to 100 million tons of raw clay materials from U.S. Mine LLC for $50 million. This acquisition aims to enhance the company’s production of lower carbon cements, addressing the growing demand for sustainable construction materials. The payment will be made through a convertible promissory note. CEO Scott Dockter emphasized the importance of this move in meeting environmental demands. Newbridge Securities Corporation advised on the transaction, with legal counsel from The Crone Law Group.

Positive

• Acquisition of access to 100 million tons of clay can significantly enhance production capabilities.
• Targeting the growing market for lower carbon cements aligns with environmental sustainability trends.
• Potential for revenue growth from the demand for green construction materials.

Negative

• Acquisition cost of $50 million may increase financial strain if returns are delayed.
• Dependence on the successful integration of new materials into existing product lines.

IONE, CA, May 28, 2021 (GLOBE NEWSWIRE) -- Purebase Corporation (OTCQB:PUBC) (“Purebase” or the “Company”), a diversified resource company, headquartered in Ione, California, announced today that it has entered into an agreement with U.S. Mine LLC to acquire the right to access up to 100M tons of certain raw clay materials. These clay materials will be targeted for use as a supplementary cementitious material (SCM) for use in the production of lower carbon cements.

In consideration for this right to access these raw clay materials, Purebase shall pay $50M to U.S. Mine LLC through delivery of a convertible promissory note.

Purebase’s CEO, Scott Dockter, stated, “Acquiring the rights to this amount of material is the next step towards bringing our SCM products to market, at a time when this country and many other countries are demanding products that will help lower carbon emissions. We believe the demand for greener cements justifies the need for Purebase to obtain the rights to access up to 100M tons of clay materials from US Mine LLC.”

Newbridge Securities Corporation served as a financial advisor on the transaction and The Crone Law Group acted as the Company’s legal counsel.

About Purebase Corporation

Purebase Corporation (OTCQB: PUBC) is a diversified resource company that acquires, develops and markets minerals for use in the agriculture, construction and other specialty industries.

Contacts

Emily Tirapelle - Purebase Corporation | emily.tirapelle@purebase.com, and please visit our corporate website and subscribe to our upcoming Newsletter – www.purebase.com/newsletter

Safe Harbor

This press release contains statements, which may constitute “forward-looking statements.” Those statements include statements regarding the intent, belief, or current expectations of Purebase and members of its management team, as well as the assumptions on which such statements are based. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that may cause actual results to differ from those anticipated are discussed throughout the Company’s reports filed with Securities and Exchange Commission which are available at www.sec.gov, as well as the Company’s web site at www.purebase.com. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results.

FAQ

What is Purebase Corporation's recent acquisition involving PUBC?

Purebase Corporation acquired access to up to 100 million tons of raw clay materials from U.S. Mine LLC for $50 million to enhance its lower carbon cement production.

How will the acquisition of clay materials impact PUBC's business?

The acquisition is intended to meet the increasing demand for lower carbon cements, potentially driving revenue growth as the market for sustainable materials expands.

What is the payment structure for the acquisition by Purebase?

Purebase will pay $50 million through a convertible promissory note in exchange for access to the clay materials.

Who advised Purebase Corporation on this acquisition?

Newbridge Securities Corporation served as the financial advisor, while The Crone Law Group provided legal counsel.