VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 10/31/13 — Offsetters Climate Solutions Inc. (“OCS” or the “Company”) (TSX VENTURE: COO) (FRANKFURT: 9EA) wishes to announce that its subsidiary, ERA Ecosystem Restoration Associates Inc., (“ERA”) has entered into an agreement (the “Agreement”) effective Oct. 22, 2013, to sell to Wildlife Works Carbon, LLC (“WWC”) its Mai Ndombe Joint Venture Project (the “JV Project”) in the Democratic Republic of the Congo (“DRC”). Prior to this Agreement, ERA and Wildlife Works were 50/50 joint venture partners in the Mai Ndombe REDD+ (Reducing Emissions from Deforestation and Degradation) project.
The assets being sold to WWC and comprising the JV Project include all of ERA–s shares in its DRC subsidiary, ERA Congo SPRL, and the Company–s shares of its Hawaiian subsidiary together with all rights, title and interest in forest concession rights, community agreements and other contracts relating to the JV Project. Upon closing of the Agreement, all inventory of Verified Carbon Units (“VCUs”) currently existing for the JV Project will be transferred to WWC. WWC will pay ERA a total of USD$1,800,000 for the JV Project on payment terms as described in the Agreement.
Mike Korchinsky, CEO of Wildlife Works Carbon stated, “We have always loved the Mai Ndombe REDD+ project and the potential for REDD in the DRC. As we looked to expand our REDD+ portfolio, it made tremendous sense for us to consider this project first, as we are acutely involved in its development already. Acquiring ERA–s 50% interest achieves the expansion we desire, and provides Offsetters with a unique opportunity to recognize the value of its investment and work in the DRC.”
As a condition of closing the sale of the JV Project, ERA and WWC shall enter into an Emissions Rights Purchase Agreement (“ERPA”) providing ERA the right to purchase 500,000 VCUs from WWC. This will allow the Company to fulfill its existing sales agreement between ERA and the Forest Carbon Group AG, requiring the delivery of 100,000 VCUs from Mai Ndombe at December 15, 2013, and 400,000 VCUs over the course of 2014.
Upon closing of the Agreement, WWC will assume sole management of the JV Project and the joint venture agreement will be terminated. The Agreement calls for WWC to assume, effective October 22, 2013, all costs of the JV Project. The Agreement and its terms are subject to the approval of the TSX Venture Exchange.
“The Mai Ndombe REDD+ project was the result of a tremendous amount of diligent work and effort by our team and by our project partners at Wildlife Works,” said Dr. James Tansey, CEO of Offsetters. “We–re honoured to have been part of the first REDD+ project in the Congo Basin, and in the Democratic Republic of Congo. This project has helped established a new paradigm for conservation using carbon as a tool to protect forests from deforestation and degradation.”
“With their exclusive focus on REDD project development and management, Wildlife Works is the best organization to grow Mai Ndombe from a project level, to a regional level program that helps conserve and protect millions of hectares of valuable rainforest. As we pass the reigns to Mike and his team, we also pass on our sincere appreciation to our in-country team, the DRC Ministry of Environment, Nature Conservation and Tourism, and the communities of Mai Ndombe for their dedication in making Mai Ndombe REDD+ a reality.”
The Company will continue to leverage the expertise developed as a result of the work undertaken in Mai Ndombe, and apply it to existing and future international REDD projects within its portfolio.
Filings related to this Agreement will be made available on .
James Tansey, Ph.D., President and CEO
Offsetters Climate Solutions Inc.
About Wildlife Works
Wildlife Works, headquartered in Mill Valley, California, is the voluntary carbon market–s leading REDD+ (Reducing Emissions from Deforestation and Forest Degradation) project development and management company. REDD+ is an essential climate change mitigation strategy originated by the United Nations, designed to help stop the destruction of the world–s forests. Protecting threatened forests under the REDD+ mechanism empowers forest communities with alternatives to deforestation and viable means for sustainable development. Under rigorous environmental and social standards with third-party audits, Wildlife Works REDD+ projects generate Verified Emission Reductions (VERs), where each VER represents the avoidance of one ton of CO2 being released into the atmosphere. VERs are purchased by corporations who voluntarily elect to reduce their unavoidable emissions. Proceeds from Wildlife Works VER sales are reinvested in green economic development for the forest communities, thus removing the threat to the forest.
Wildlife Works REDD+ projects deliver unprecedented environmental and social benefits to seriously impoverished parts of Africa that are in desperate need of change. Additional information about Wildlife Works can be found on the corporate website .
About Offsetters Climate Solutions Inc.
Offsetters is Canada–s largest and most diversified carbon management solutions company. Its team of industry leaders specializes in the origination, development and commercialization of high-quality carbon offset projects, and through a comprehensive offering of sustainability consultancy services Offsetters helps organizations understand, reduce and offset their climate impact. A merger of ERA Carbon Offsets and Offsetters, Offsetters is based in Vancouver, Canada and has worked with over 150 of the world–s most prestigious organizations including Aimia, Vancity, lululemon athletica, Catalyst Paper, Harbour Air, HSE – Entega, and Shell Canada Limited. Offsetters is publicly listed company on the Toronto Venture Exchange (TSX VENTURE: COO) and in Frankfurt:9EA. For more information, please visit us at .
FORWARD LOOKING STATEMENTS:
Certain of the statements and information in this news release may constitute “forward-looking information” within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements. When used in this news release the words “anticipate”, “believes”, “estimates”, “expects”, “intends”, “may”, “project”, “plan”, “should”, “forecast”, “outlook”, “budget”, “anticipated”, “future”, “potential” and similar words and expressions may identify forward-looking statements or information.
The statements in this news release reflect the Company–s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, known and unknown, could cause actual results, performance or achievements to be materially different from results, performance or achievements anticipated by management.
The Company does not intend, and does not assume any obligation to update any forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information other than as required by applicable securities or other laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Offsetters Climate Solutions Inc.
David Rokoss
778-945-0951