RE: Vivakor Update30 Oct 2022 06:38
TSHII Lease Agreement with Vivakor
Vivakor has entered into a renewed lease (the "Lease"), covering approximately three acres of land (the "Property"), with TSHII for a term of five years, with an option to extend for a further five years, effective from 9 March 2022, to, inter alia, accommodate Vivakor's storage needs and planned plant operations at the TSHII site.
It is Vivakor's intention, with the assistance of Greenfield, to develop and enhance a pre-exisiting oil sands processing plant that it owns on the Property. Such upgraded plant, to be operated by Vivakor, would be designed to produce at least 1,000 barrels of oil per day or equivalent tonnage of asphalt cement.
Under the Lease, TSHII shall supply Vivakor with such quantity of oil sands as Vivakor determines each month, at a set minimum saturation quality, with a maximum supply of 2,000 tons per day. Vivakor will cover the cost of mining the oil sands and will pay TSHII US$3 per ton of oil sands processed by way of a rental payment for the Lease. Vivakor has paid a US$30,000 advance against future rental payments on signing of the Lease.
MoU between Greenfield and Vivakor
The MoU covers a proposed professional services agreement between Vivakor and Greenfield for the potential supply of certain operating and engineering services, including sand treatment and oil upscaling to Vivakor, such services to be provided by Valkor LLC through Greenfield.
In exchange for its services in respect of the enhancement of Vivakor's plant, Greenfield would be entitled to receive 50% of net revenues received by Vivakor for any post-processed sand material from the plant sold through offtake agreements procured by Greenfield.
The MoU includes a binding five-year exclusivity period for agreeing and entering into any definitive agreements covering the abovementioned matters.
Sign In
Follow the stocks
