ST. JOHN'S, NL / ACCESSWIRE / August 20, 2024 / Atlas Salt Inc. ("Atlas Salt" or the "Company") (TSXV:SALT)(OTCQB:REMRF) is pleased to announce that the Company has entered into a non-binding Memorandum of Understanding ("Non-BindingMOU") with Scotwood Industries LLC ("Scotwood") to establish a strategic salt production offtake agreement and joint venture for the distribution and sale of packaged salt and related products ("Products") in Canada.
The Non-Binding MOU does not include the sale of bulk road de-icing salt and excludes the provinces of Newfoundland & Labrador, Prince Edward Island, New Brunswick and Nova Scotia, subject to certain exceptions with respect to national accounts and expansions of existing relationships that Scotwood has with retailers in the United States that have Canadian affiliates doing business in those provinces.
The Joint Venture would target annual sales volumes for the strategic offtake and distribution of Products of 1.25 to 1.50 million tonnes per annum ("Mtpa"), subject to market conditions.
About Scotwood:
Scotwood is an industry leader in the marketing and distribution of salt products in the United States, successfully operating since 1980. Scotwood is the largest packaged retail de-icing distributor in the United States, with a loyal customer base, including leading big box mass merchandisers, DIY, farm and home, grocery, hardware and automotive chains, with existing relationships averaging over 20 years.
In the United States, Scotwood utilizes a unique marketing strategy, partnering with nationally recognized consumer brands, ensuring consumer brand recognition and quality.
About the Strategic Salt Production Offtake & Canadian Joint Venture (the "Business"):
The Business would take advantage of Scotwood's deep industry and client expertise, and Atlas Salt's long-life, low-cost, proximal supply to strategically serve the Canadian retail market for the distribution and sale of Products.
Atlas Salt and Scotwood would evaluate the overall Canadian market for Products to determine annual sales volume, as well as client and pricing targets for the Business, with a target product distribution volume of 1.25 to 1.50 Mtpa.
The Joint Venture would exclusively source all salt for the Products from the Great Atlantic Salt Project through a Strategic Salt Production Offtake Agreement.
About the Non-Binding MOU:
Atlas Salt and Scotwood intend to exclusively work together to negotiate binding agreements establishing and governing the Joint Venture and the Strategic Offtake, with the intention that the parties will share management of the Joint Venture and share profits equally after reasonable recovery of costs.
Rick LaBelle, Atlas Salt CEO, commented: "Since I joined the Company, I've been focused on opportunities in the retail market, where supply is more predictable, and margins are generally higher. Atlas is excited to work with Scotwood Industries, the largest packaged retail de-icing business in the United States, on a mutually beneficial strategic offtake and joint venture to provide tailored packaged salt solutions for the Canadian marketplace, by leveraging Atlas Salt's high-quality, made-in-Canada salt and Scotwood's brand strategy, industry expertise and reputation for superior customer service."
Chase Wilson, President of Scotwood, commented "Being the largest distributor of packaged retail de-icing salt in the United States we are very selective in choosing new business partners. If completed, we believe Atlas Salt's long life underground salt project would make Atlas Salt an ideal long-term partner for us in Canada."
Atlas Salt Inc. is developing Canada's next salt mine and is committed to responsible and sustainable mining practices. With a focus on innovation and efficiency, the company is poised to make significant contributions to the North American salt market while upholding its values of environmental stewardship and community engagement.
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance of the Company, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements in this press release relate to, among other things: completion, delivery and timing of project components and requirements, and analysis and assumptions related thereto. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, technical, economic, and competitive uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the timing, completion and delivery of required permits, supply arrangements and financing. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
