Saturn Minerals Inc announces that it has signed a Memorandum of Understanding with a private Saskatchewan based coal to liquid fuels development company to develop an exclusive coal supply agreement.
As per the terms of the MOU, Saturn and the Coal Partner will enter into a due diligence period whereby both parties will retain the exclusive rights to evaluate each other's assets in the interest of coal development as well as to evaluate any other such arrangements as may be mutually agreeable to both parties. Upon execution of the coal supply or such other development agreement as may be advisable after due diligence, Saturn will retain an exclusive right to supply a minimum of seven million tons of sub-bituminous coal (or the equivalent energy content from other types of coal) on an annual basis to the Coal Partner's project by way of production, acquisition or joint venture, for a minimum period of twenty five years.
The Coal Partner has been actively pursuing Canadian coal assets since 2009 and has identified Saskatchewan, certain First Nations, Saturn and Inowending Exploration & Development Corp. as synergistic to its business model. The Coal Partner is a private company incorporated under the laws of Canada and is comprised of internationally recognized entities with respect to coal & energy development and senior oil & gas and financial interests that have previously secured financing for such ventures.
The Coal Partner has notified Saturn that due to underlying non-disclosure agreements between the Coal Partner and third parties and for competitive reasons, the Coal Partner will remain unnamed during the due diligence period. Saturn will disclose all material information upon the execution of a definitive agreement following the due diligence period.
Mr Stan Szary President of Saturn said "We would like to thank our First Nation partners for taking the steps to initiate the dialogue between the Coal Partner and Saturn & Inowending, and we look forward to advancing the development strategy and market for the Saskatoba coals."
