TORONTO, May 18, 2021 (GLOBE NEWSWIRE) — EarthRenew Inc. (CSE: ERTH; OTCQB: VVIVF; Frankfurt: WIMN) (“ EarthRenew ” or the “ Company ”), a Canadian company focused on regenerative agriculture solutions, announced it has signed a non-binding letter of intent (“ LOI ”) to lease approximately 15 acres of land from K+S Potash Canada General Partnership (“ K+S Potash ”, or “ KSPC ”) near its existing Bethune, Saskatchewan potash mine and processing plant (the “ Leased Land ”), on which the Company wishes to construct a new fertilizer manufacturing facility (the “ Facility ”). If constructed, the Company projects that the Facility will have the capacity to produce up to 100,000 tonnes of granulated regenerative and organic fertilizer product. Once produced, management expects to price these fertilizer products in a range that follows published commodity indices for potash derived products based on regional basis pricing – currently C$345 – C$545 per metric tonne, representing a gross margin of approximately 30%. The Facility is expected to cost an estimated $10 – 15 M and will be financed by a combination of debt, equity and suitable grants.
KSPC is an arm’s length party to EarthRenew and Replenish Nutrients Inc. Construction of the Facility remains subject to several conditions including, without limitation: execution of definitive agreements with KSPC, including a long-term lease agreement and agreements respecting shared services (collectively, the “ Definitive Agreements ”); completion of permitting and engineering activities; and EarthRenew entering into design and construction contracts for the Facility. EarthRenew continues to investigate several project locations across Western Canada and into the United States. There can be no guarantees that the necessary permits will be obtained, that the Definitive Agreements and construction and design contracts will be entered into or that the Facility will be constructed as contemplated or at all.
Pursuant to the terms of the LOI, EarthRenew anticipates entering into a potash supply agreement, whereby KSPC shall supply potash by-products for raw material input into the Company’s regenerative fertilizer blends from its Bethune mine for a minimum period of 15 years. EarthRenew also anticipates signing a minimum 15-year lease agreement for the Leased Lands for the Facility on 15 acres of land owned by KSPC. Other key terms of the LOI include: terms of the lease and shared services for the Facility, granulation services, marketing and distribution and the potential option to collaborate on future product innovation and research and development within the Facility.
EarthRenew’s CEO, Keith Driver, stated, “The signing of this LOI represents our commitment to working towards increased manufacturing capacity. We are very excited to be pursuing an opportunity that would allow us to work closely with a global leader like K+S Potash and to secure consistent access to their high-quality potash.” He continued, “Customers prefer our regenerative products because they are made from natural mineral sources which are essential to the plant but do not leach into groundwater like conventional products. KSPC’s potash is an integral part of our blends and this LOI further establishes our long-term relationship and commitment to building the best soil health products possible.”
KSPC’s President and General Manager, Sam Farris, commented, “We welcome the possibility of EarthRenew establishing its facility near our site to secure a local outlet for our potash by-products. The opportunity to add value to our potash locally would mean more local jobs and economic activity and would open the door to further partnership between our companies in the future. The KSPC team has been working with the EarthRenew and Replenish teams for the past several months as a by-product sales partner and we look forward to building on those relationships with this exciting potential partnership opportunity.”
For additional information, please contact:
Keith Driver
CEO, EarthRenew
+1(403)860-8623
Email: keith.driver@earthrenew.ca
About EarthRenew
EarthRenew’s mission is to support a farm system that puts healthy soils and grower profitability back on the table. Using circular economic principles of upcycling waste products into high value agronomic inputs, we are building an innovative platform of soil health products that will establish EarthRenew as a key player in the regenerative agriculture space. We strive to be a driving part of this movement by offering growers natural fertilizer alternatives that feed the soil to strengthen the earth’s ability to restore itself while growing healthy plants. Our regenerative product line is branded under the label “Replenish Nutrients” and is targeted at conventional and organic growers who are seeking solutions to address soil health needs. EarthRenew benefits from multiple revenue streams including, primarily, the sale of regenerative fertilizers, but also enjoys secondary revenue from generating power and selling surplus electricity.
