The Board of Solanex Management Inc. today announced that the company has entered into a Memorandum of Understanding (MOU) to acquire technology leasing rights for sales, marketing and distribution to both a Pyrolitic Hydrocarbon Gasification System and a Liquid Extraction System owned by American Resource Petroleum Corporation of Utah.
This move has been made to enhance the incineration / gasification component of Solanex’s business model as the company believes the raw feed products of oil sands, oil shale, coal or used tires to be an added benefit to potential customers, especially Municipal, State and Federal Governments. Government agencies throughout the defined territory are all concerned about environmental emissions and will appreciate knowing that these technologies have been favorably reviewed by the EPA.
According to the company, the liquid extraction system uses a non-toxic, non-carcinogenic solution which separates the oil from its host (i.e. oil sands), but can also be used in an insitu recovery of in ground; old capped/closed oil wells, low producing wells as well as low producing heavy oil deposits where the viscosity is too thick for economical production.
Under the terms of the MOU, there is a due diligence period which is to conclude on or before the 31st of October, 2009. The territory includes the exclusive rights for the Central and South American region as well as additional Joint Venture rights to projects in North America with the existing rights holder. The agreement calls for a royalty which is not to exceed 5% of the net production revenue as well as a payment of 3 million common shares of Solanex.
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