The company said its focus is on securing funding to complete the acquisition and begin development of the first commercial-scale facility.
(,) announced to investors that Greenfield Energy LLC, now a wholly owned subsidiary, is advancing its transaction to acquire an interest in 760 acres of land and assets in Uintah County, Utah.
This area is earmarked for future oil sands mining and the construction of a commercial scale processing plant based on the pilot plant used in Greenfield’s recent tests.
Greenfield previously agreed to acquire 100% of Tar Sands Holdings II LLC, which holds the land, despite an option agreement in which Greenfield initially paid up to $ 2 million for 10%.
The option agreement included a $ 200,000 non-refundable down payment that provided a 90-day due diligence exclusivity period, and then Greenfield made an additional $ 100,000 down payment to extend the due diligence period and the Postpone the deadline for paying the balance to October 1.
Assuming the transaction progresses, Greenfield has until December 2022 to exercise its option to acquire the other 90% of the asset package.
“The due diligence previously carried out on the site was still ongoing, so it appears ideally suited for the affordable construction of Greenfield’s first commercial facility.”
“The focus of Greenfield is now both on the further development of the necessary financing package, among other things to secure the initial 10% membership share, as well as on the detailed planning to continue the construction of the first plant with 5,000 bopd at the earliest possible point in time.”
TomCo noted that Greenfield is in advanced discussions about a possible acquisition agreement related to the commercial project and that its due diligence on the acquisition of the site is essentially complete.
Greenfield recently began working with () Inc., a global design and supply company that, along with consultant Netherland Sewell & Associates, will conduct mine planning for the site along with a site reserves report and other preparatory work.
The proposed site has existing infrastructure, facilities and equipment and an existing permit for a large mine that could facilitate future development by Greenfield.
Today’s extension comes after TomCo signed a deal last week to take over the entire greenfield business, which was previously a joint venture with Valkor.
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