Calgary, Alberta (FSCwire) - Saccharum Energy Corp. (“Saccharum” or the “Corporation”) announced today that it and Expander Energy Inc. (“Expander”) have entered into an Option to Purchase License Agreement dated effective March 4th, 2016 for the purpose of creating a partnership between Saccharum, Expander and a consortium of private investors to build Canada’s first small-scale commercial Enhanced GTL® (“EGTL™”) plant at a location in Alberta. The plant is designed to convert Natural Gas and Natural Gas Liquids into premium zero sulfur, high cetane synthetic diesel.

The installation and commissioning of this plant is expected to be directly in line with the Government of Alberta’s Royalty Review Panel’s recommendation of increasing value-added gas processing in Alberta. Furthermore, Expander’s Gas to Liquids (“GTL”) process also provides progressive environmental solutions and results in lower CO2 emissions than conventional technologies.

As part of the Option to Purchase License Agreement, Saccharum has agreed to pay a non-refundable technology licensing option fee of $200,000 (CAD) which will give the Corporation a 24-month option to purchase a nonexclusive license for Expander’s EGTL™ technology.  The EGTL™ licence will permit Saccharum to build, own, and operate a GTL plant up to a size of 2,000bpd of synthetic diesel or greater (subject to conditions) at a location within British Columbia or Alberta.

EXPANDER ENERGY INC.

Expander is a leading developer and licensor of processes to convert carbon sources into synthetic fuels.  These engineered fuels are clean burning and complement existing transportation fuel infrastructure and current engine technologies.  The fuels reduce GHG emissions and are produced from carbon rich materials such as natural gas, biomass, bitumen residuals, petcoke and municipal solid waste. 

Expander’s plant design combines a synthetic gas (syngas) generator (gasifier) with their Enhanced Fischer-Tropsch®(EFT®) process to produce SYNDIESEL® and SYNJET™ fuels. Expander has developed a proprietary process that enhances the existing technology used in the Fischer-Tropsch (F-T) process. Expander’s Carbon Management and Utilization (“CMU”) of feedstock increases product output and eliminates low-value by-products. Expander’s synthetic fuels can be economically delivered through existing fuel infrastructure. 

Expander is the owner and exclusive licensor of following patented technology; Enhanced Fischer-Tropsch®, Enhanced GtL®, and FT Crude®.

PRIVATE PLACEMENT

In addition to execution of the Option to Purchase License Agreement, Saccharum intends to complete a non-brokered private placement of up to 6,000,000 common shares at $0.05 per share to raise up to $300,000. It is anticipated that these shares will be acquired primarily by directors, officers and strategic stakeholders associated with Saccharum and Expander. It is not anticipated that any commissions or finder's fees will be paid in connection with the placement of the shares. Proceeds of the private placement will be used to pay the $200,000 (CAD) non-refundable option license fee and to support ongoing working capital requirements.

Additionally, the Corporation has entered into an agreement to issue up to 7,000,000 common shares at $0.05 per share to a holder of a promissory note previously issued by the Corporation.  The promissory note is due on April 30, 2016 and bears interest a rate of 8% per annum, due quarterly.  The private placement and the shares for debt transaction are subject to, among other things, the receipt of all required regulatory approvals.

Board of Directors and Management

As part of the Transaction, David Ragan and Judy Leverington have agreed to immediately resign as directors of Saccharum and David Pinkman has agreed to immediately resign as Chief Executive Officer. James Ross, the current Chief Executive Officer of Expander, will be appointed to the Board of Directors of Saccharum and Shane Ferster will be appointed as Chief Executive Officer and Director. The appointment of Mr. Ross and Mr. Ferster shall be subject to all required Saccharum board of directors, Expander board of directors, and Exchange approvals.   In connection with their appointments, Saccharum had issued 900,000 options, exercisable at $0.06 per option for a period of 5 years to Mr. Ross and Mr. Ferster. 

For further information contact:

Shane Ferster, Chief Executive Officer

Tel: 1 403 880 7237

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