Canadian gold explorer Graycliff Exploration (CSE:GRAY) is acquiring a company that has developed technology to convert carbon-based waste into valuable carbon, oil and gas products.
Toronto-based Graycliff has signed a letter of intent to fully acquire British Columbia-headquartered Emergent Waste Solutions (EWS).
EWS has developed an Advanced Thermolysis System (ATS) that converts waste streams – such as plastics, biomass, and municipal solid waste – into high-value commodities like biochar, bio-coal, carbon black, and renewable natural gas.
The move is aimed at backdoor listing EWS, with CEO Kevin Hull saying the team has spent the past year ensuring the company is ready to take the next step in its growth and development and go public on a Canadian stock exchange.
“I look forward to working swiftly to complete this transaction, and we have a great audit firm and law firm who will be focused on ensuring the process is quickly completed,” he says.
EWS Vice President of Finance Brian Gusko has completed five previous ‘go public’ transactions, with the last one reaching a market value of over $200 million after it went public.
“I see a significant opportunity for EWS and its international growth opportunities,” Gusko says.
EWS will advance Graycliff a non-refundable exclusivity deposit of $25,000, as well as complete an interim financing of C$125,000, via the issue of shares, to help complete construction of a new building and reassembly of EWS’ plant, which should bring it back into production.
EWS will raise an additional C$250,000 via a convertible debenture with a one-year maturity for general working capital and to cover the costs of completing the transaction.
Graycliff and EWS plan to enter into a definitive agreement prior to 1 May 2025, with Graycliff to consolidate its shares on an agreed upon ratio to give EWS shareholders over 90% ownership of the merged company.
Once the deal is complete, EWS will launch a C$1 million capital raising offering one share and half a share purchase warrant, with each full warrant exercisable for one share within two years.
Graycliff CEO James Mcintosh says EWS’ disruptive, patent pending technology should be able to generate positive cash flow in its first full year as a public company.
Graycliff owns the 1,468-hectare Shakespeare Gold Project, located about 80km west of Sudbury within the prolific Canadian Shield.
Write to Angela East at Mining.com.au
Images: Emergent Waste Solutions
