Atlas Salt and Scotwood Industries Sign MOU for Strategic Salt Production Offtake & Canadian Joint Venture for Packaged Salt and Related Products

ACCESSWIRE · Atlas Salt

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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-Binding MOU") 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.

For more information about Scotwood in the United States, please visit https://scotwoodindustries.com.

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.