Quadrise Plc (LON: QED), the transition technology provider for a cleaner planet, has announced the signature of an addendum to the Site License and Supply Agreement with Valkor Technologies LLC in Utah, USA and to confirm, pursuant to the SLS Agreement (as amended) the Company’s first license revenues.
Following the excellent progress made by Valkor during 2024 at their Primary Project Site (‘PPS’) at Asphalt Ridge, Utah, USA, Valkor has confirmed to the Company that it has now secured the minimum project finance required to develop the PPS of at least US$15 million.
With Valkor now having confirmed the required PPS development project financing, and reflecting the fact that PPS production volumes of heavy sweet oil are now expected to be phased, Quadrise and Valkor have agreed an addendum to the 2023 SLS Agreement as follows:
· A phased payment of the initial license fee, with US$0.35 million now payable by Valkor on 31 January 2025 and the remaining US$0.65 million due on 1 December 2025.
· The supply by Quadrise of a smaller Multifuel Manufacturing Unit (“MMU”) of 600 bpd capacity on an interim basis during 2025, for which Valkor will pay US$0.2 million on 1 December 2025, with a further US$0.3 million due to Quadrise upon supply of a full size 6,000 bpd MMU to the PPS in exchange for the 600 bpd MMU by return.
· US$75,000 is payable quarterly by Valkor from 1 April 2025 onwards, in exchange for Quadrise providing engineering and process design and commissioning services, site operations, compliance support and project development support services for a minimum period of two years.
