Global Resource Corp., a developer of a patent-pending microwave technology and machinery for extracting oil and gas, announced today that it has signed a contract with Warwick Communications Calgary, Alberta, Canada, for an exclusive twenty-year license to use the company's revolutionary microwave machinery to recover energy from oil, gas, mining and waste resources in Canada.
According to the terms of the agreement, Warwick immediately placed a purchase order for a five-ton an hour microwave system to process Canadian oil shale. The system is to be delivered by the end of September.
The contract, which was approved by the Boards of both companies, calls for Warwick to give Global Resource Corp., in exchange for the license, two million shares of its stock plus warrants to purchase additional shares. Also, Warwick has promised to purchase a minimum of one microwave machine each year for the next five years. This will total $25 million or $5 million a year.
Chairman Frank Pringle of Global Resource Corp. said, "With this five-ton an hour oil shale continuous microwave processing plant, we will demonstrate to the world that we can economically convert oil shale into fractionalized usable products. This is a major breakthrough for the western world that, in time, can lead to U.S. independence from Middle Eastern oil cartels. It may take several years for this independence, but by demonstrating that GRC can produce fractionalized products with little or no refining is the first major step in this direction."
Warwick CEO, President and CFO Jeremy White said, "We are extremely lucky to get our order in first because our expected sales from demonstrating this five-ton per hour unit will exceed Global Resource's production quotas for microwave tubes over the next 12 months."
"We are pleased to be a partner with Global Resource Corp.," he added, "in this timely launch of its five-ton an hour oil shale processing system, a small scale hydrocarbon extraction technology that is greatly needed for the oil shale, heavy oil and oil sands and coal of Canada."
"Canada has more than 14 billion barrels of recoverable shale oil together with some of largest reserves in the world of heavy oil and oil sands and coal," he said.
"With this unit we will be able to demonstrate to the Canadian market the practicality of this technology. Several companies have expressed a desire to witness their material running in this unit. With the five-ton oil shale processor, we will have the ability to run large quantities of their product on a continuous basis. Our sales dollars should reflect this capability immediately," White concluded.
The contract also specifies that Warwick has a first right of refusal to negotiate for Brazil, Morocco, Panama, Trinidad & Tobago and China. In addition, the agreement grants Warwick exclusive first right to purchase an exclusive Canadian license rights to any new technologies Global Resource Corp. develops. A member of the Global Resource Corp., board of directors will join Warwick's board.
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