Calgary, Alberta / ACCESSWIRE / September 16, 2014 / Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V: SNV) hereby announces that it has entered into an Asset Purchase Agreement ("APA"), with an arms length private third party ("Purchaser"), for the sale of its remaining rights of its Sonicator technology and assets (the "Technology"), excluding solvent de-asphalting of heavy oils as previously sold to Petrosonic Energy in July 2012.
The following are the key terms under the APA:
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-USD$200,000 to be paid in two equal installments before Dec.31, 2014 and Sept.15, 2015.
-All Company assets at the Richmond B.C. site will become the property of Purchaser.
-All Company patents and applications related to the Technology have been sold to Purchaser.
-The shares of SonoAsh LLC (a wholly owned subsidiary of the Company) have been sold to Purchaser.
-All staff at the Richmond B.C. site have agreed to be transferred to Purchaser with no remaining obligations to the Company.
-Purchaser will pay royalties of 1% of revenues on the Technology for the earlier of ten years or of 8 years from first commissioning of a Sonicator
-Purchaser will pay royalties of USD$10,000 for each Sonicator commissioned with the first to be pre-paid upon closing.
-Purchaser has the option to buy-out all royalty obligations for USD$1 million prior to Dec 31, 2015, or USD$2 million prior to Dec 31, 2016.
-The Petrosonic Agreement remains with the Company
The APA contains other customary covenants, representations, warrants and indemnities.
The Company's decision to sell its remaining technology assets is consistent with the Company's focus on international unconventional resource exploration and to minimize its expenditures outside of its core focus. The Company believes that with third party expertise and focus on technology development, the sonic platform of technologies may be developed more rapidly and create revenue earlier than would otherwise be possible. If this occurs, the Company would be able benefit from a future royalty stream.
About Sonoro
Sonoro is an international unconventional resource exploration and development company. Our current focus is a pure play on bitumen/asphalt resource exploration and development in Iraq. Sonoro's Salah ad Din Asphalt License is currently under Force Majeure given the recent development in Iraq.
Forward-Looking Information
Certain statements in this news release may constitute "forward-looking information" ("forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "estimate", "potential", "could", "ongoing", "prospective", "expected" and similar words suggesting future outcomes. By their nature, forward-looking statements are based on current expectations regarding future events that involve a number of assumptions, known and unknown risks, and uncertainties. Actual results, performance or achievements of Sonoro, or the industry, may vary materially from what is expressed or implied by such forward-looking statements.
These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other important factors that could cause our actual performance to be materially different from those we project. These risks and uncertainties include, but are not limited to: (1) risks associated with obtaining, maintaining and the timing of receipt of regulatory approvals, permits, and licenses; (2) uncertainties related to financing of Sonoro's exploration activities and continued operations through access to capital markets; (3) the risk of volatile global economic conditions; (4) continued political stability; (5) continued support from the local communities, (6) operational risks in development, exploration and production delays or changes in plans with respect to exploration or development projects or capital expenditures; (7) the uncertainty of resource estimates, geological interpretations, estimates and projections in relation to production, costs and expenses, and health, safety and environmental risks; (8) the continued ability to obtain qualified staff and equipment in a timely and cost efficient manner; (9) the risk of commodity price and foreign exchange rate fluctuations; (10) risks associated with the implementation and commercialization of new technology (11) the risk of disputes with contractual counter-parties regarding the application of the Company's agreements.
Given these uncertainties, you should not rely on forward-looking statements. These forward-looking statements also represent our estimates and assumptions only as of the date that they initially were made. We expressly disclaim a duty to provide updates to any forward-looking statements, and the estimates and assumptions associated with them, to reflect events or circumstances or changes in expectations or the occurrence of anticipated events after the date they initially were made, except and to the extend required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
RICHARD WADSWORTH
Chairman and CEO
+1.403.262.3252
SOURCE: Sonoro Energy Ltd.