Base Carbon Inc. (Cboe CA: BCBN) (OTCQX: BCBNF) with operations
through its wholly-owned subsidiary, Base Carbon Capital Partners
Corp. (“
BCCPC”, together, with affiliates,
“
Base Carbon”, or the “
Company”),
is pleased to announce that it has received an initial transfer of
717,558 correspondingly adjusted carbon credits from its Rwanda
cookstoves project, each designated by Verra with an article 6
authorized (“
Article 6 Authorized”) label. Receipt
of these carbon credits from the Rwanda cookstoves project is an
important Company milestone, marking Base Carbon’s second project
to transition from the development stage to active carbon credit
generation, as well as an important industry milestone, being the
first Article 6 Authorized labeled carbon credits issued by Verra.
Highlights:
- Rwanda
cookstoves project has successfully transitioned to the carbon
credit generation stage, with regular future issuances expected at
semi-annual intervals.
- 717,558
Article 6 Authorized labeled carbon credits have been transferred
to the Company.
- The
carbon credits transferred to the Company are part of Verra’s first
ever correspondingly adjusted Article 6 Authorized carbon
credits.
- The Company believes that
the correspondingly adjusted carbon credits with Verra’s Article 6
Authorized designation will expand the pool of buyers with
potential pricing upside.
As first announced in December 2023, the
Government of Rwanda issued a letter of authorization
(“LOA”) with respect to the Rwanda cookstoves
project resulting in Verra announcing it had applied its Article 6
Authorized label to the project, being the first time Verra had
applied such designation to a carbon project registered in its
Verified Carbon Standard Program.
BCCPC and the DelAgua Group
(“DelAgua”), the project developer, have been
engaged in discussions as to the best implementation of the LOA.
According to the LOA, a copy of which may be found on Verra’s
website under project ID 4150, 2% of any issued Article 6
Authorized labeled carbon credit are to be immediately retired to
help offset global emissions, 10% of such carbon credits are to be
transferred to the Government of Rwanda to help achieve its
nationally determined emission reduction targets, and 5% of net
revenues generated from the sale of the remaining Article 6
Authorized labeled carbon credits issued will be remitted to United
Nations’ global adaptation fund (“GAF”).
BCCPC and DelAgua have recently executed an
amended and restated project agreement to facilitate the
implementation of the LOA. Under the terms of the revised
agreement, BCCPC and DelAgua have agreed to split the 5% GAF
remittance attributable to Article 6 Authorized labeled carbon
credits sold based upon each party’s pro rata share of sales
proceeds outlined in a revenue sharing arrangement between the
parties. The Company’s GAF remittance is currently anticipated to
be US$0.20 per credit for the first 1,925,000 Article 6 Authorized
labeled carbon credits received by BCCPC.
Under the revised project agreement, Article 6
Authorized labeled carbon credits issued from the Rwanda cookstoves
project will be net of the 12% volume reduction outlined in the
Government of Rwanda LOA. Based upon on this, and assuming all
carbon credits from the Rwanda cookstoves project were issued with
an Article 6 Authorized label, a new and revised aggregate minimum
of 6.6 million carbon credits would now be subject to the revenue
sharing arrangement between BCCPC and DelAgua. The Company is
currently evaluating all sales options with respect to the initial
717,558 carbon credits and believes that the potential pricing
upside of correspondingly adjusted carbon credits will
significantly offset any volume reductions pursuant to the
implementation of the LOA.
About Base Carbon
Base Carbon is a financier of projects involved
primarily in the global voluntary carbon markets. We endeavor to be
the preferred carbon project partner in providing capital and
management resources to carbon removal and abatement projects
globally and, where appropriate, will utilize technologies within
the evolving environmental industries to enhance efficiencies,
commercial credibility, and trading transparency. For more
information, please visit www.basecarbon.com.
Media and Investor
Inquiries
Base Carbon Inc.Investor RelationsTel: +1 647
952 3979E-mail: investorrelations@basecarbon.com
Media InquiriesE-mail: media@basecarbon.com
Cautionary Statement Regarding Forward
Looking Information
This press release contains “forward-looking
information” within the meaning of applicable securities laws
relating to the focus of Base Carbon’s business, the expected
continued semi-annual issuances of carbon credits, the
implementation of, and compliance with, Article 6 of the Paris
Agreement by the Government of Rwanda, the continued designation of
project carbon credits with the Article 6 Authorized label by Verra
and the expected market reaction to such carbon credits. In some
cases, but not necessarily in all cases, forward-looking
information may be identified by the use of forward-looking
terminology such as “expects”, “anticipates”, “intends”,
“contemplates”, “believes”, “projects”, “plans” or variations of
such words and similar expressions or state that certain actions,
events or results “may”, “could”, “would”, “might”, “will” or “will
be taken”, “occur” or “be achieved”. In addition, any statements
that refer to expectations, projections or other characterizations
of future events or circumstances contain forward-looking
information. Statements containing forward-looking information are
not historical facts but instead represent management’s
expectations, estimates and projections regarding future events.
These statements should not be read as guarantees of future
performance, results, or achievements.
Although management believes that the
anticipated future results, performance or achievements expressed
or implied by the forward-looking information are based upon
reasonable assumptions and expectations, readers should not place
undue reliance on forward-looking information because it involves
assumptions, known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements to differ materially from anticipated future results,
performance or achievements expressed or implied by such
forward-looking information.
In respect of the Rwanda cookstoves project,
certain factors that influence the commercial success of such
project and successfully meeting the milestones related to such
project, including the timing and number of expected carbon
credits, include, but not limited to, among other things: (i) the
Company has retained industry leading experts/consultants/advisors
to assist with the continuing monitoring and evaluation of such
project, (ii) the work product, including monitoring reports, of
the project’s validation and verification Body, (iii) carbon credit
market prices, (iv) the verification of ongoing project monitoring
reports and issuance of carbon credits by Verra, and (v) changes to
laws and regulation in applicable jurisdictions. In respect of the
Rwanda cookstoves project, certain assumptions that influence the
commercial success of such project, including the timing and number
of expected carbon credits, include, but not limited to, among
other things: (i) distributed cookstoves perform to specification
when used and participating households use the devices as
contemplated by project estimates, (ii) the Company’s in-country
project partner, being the DelAgua, performs its obligations in
connection with the operation of the project, (iii) continued
support of the project and compliance with LOA by the Government of
Rwanda, and (iv) continued participant involvement and public
support of the voluntary carbon market.
The forward-looking statements made herein are
subject to a variety of risk factors and uncertainties, many of
which are beyond the Company’s control, which could cause actual
events or results to differ materially and adversely from those
reflected in the forward-looking statements. Readers are cautioned
that forward-looking statements are not guarantees of future
performance. Specific reference is made to the management
discussion and analysis for the Company’s fiscal year ended
December 31, 2023 and the most recent Annual Information Form on
file with the Canadian provincial securities regulatory authorities
(and available on www.sedarplus.ca) for a more detailed discussion
of some of the factors underlying forward-looking statements and
the risks that may affect the Company’s ability to achieve the
expectations set forth in the forward-looking statements contained
in this press release.
Should one or more of the risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual events or results may vary materially and
adversely from those described in the forward-looking information.
The forward-looking information contained in this press release is
provided as of the date of this press release, and the Company
expressly disclaims any obligation to update or alter statements
containing any forward-looking information, or the factors or
assumptions underlying them, whether as a result of new
information, future events or otherwise, except as required by
law.
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