Noble Metal gets cracking, leaves Hycraft development
2009-07-27 17:51 ET - News Release
Mr. J.J. McIntyre reports
Noble Metal Group Inc.'s Noble Hydrocarbons Alta. Ltd. on April 3, 2007, entered into a technology licence agreement with Texas-incorporated entities Global Resource Holdings L.P., Infinity Petroleum, LLC, and Dragon Keystone, LLC. Thetechnology agreement originally entered into provided NHA with the exclusive right to use technologies known as Insitu Hycraft for all of Canada and the cracking Hycraft on NHA's properties in Canada. The technologies were to be used in the cracking and lightening of complex hydrocarbons that exist in conventional oil, heavy oil and oil sand formations to oil equivalent to that of light intermediate crude.
As a result of technological advancements to the cracking Hycraft process reported by Global Resource Holdings LP, the participating companies agreed to further modifications of the original agreement in August, 2008. The parties agreed to construct a 1,000-barrel-per-day cracking Hycraft processing plant to be used as a demonstration plant situated in the United States. Jointly owned entities were incorporated in both the United States and Canada with the joint entities licensed to use the cracking Hycraft process. The total cost of the processing plant was to be $4-million (U.S.) of which NHA had to pay $2-million (U.S.).
NHA has been made aware that the scientists which had been working with the Global group of companies are either no longer doing so, or no longer working exclusively for those companies on the development of the technologies. Global has not provided information satisfactory to NHA as to how these losses affect the development of the technologies. The loss of the scientists combined with the downturn in the global economy has lead the board of NHA to decide not to go forward with any further expenditures on the technologies at this time.
The option granted to Global Resource Holdings LP to purchase one million shares of Noble Metal Group at a price of $1.00 per share expires on Aug. 5, 2009.
We seek Safe Harbor.
