Prime Meridian Signs LOI for Guar Gum Powder Off-Take with African Guar Gum Corporation
May 01, 2015 News Release TSX-V Symbol: PMR
PRIME MERIDIAN SIGNS LOI FOR GUAR GUM POWDER OFF-TAKE WITH AFRICAN GUAR GUM CORPORATION
Vancouver, B.C.: Prime Meridian Resources Corp. (“Prime” or the “Company”) (TSX-V Symbol: PMR) is pleased to announce that in continuance of its strategic plan, the Company has entered into a Letter of Intent with African Guar Gum Corporation (“AGGC”) for a Global Guar Gum Powder Off-Take Agreement.
The Off-Take will commence once AGGC have achieved reliable production that meets the specifications as determined by the parties. The specifications will be developed jointly between the technical teams of Prime and AGGC over the period between the execution of a formal off-take agreement (the “Formal Off-Take Agreement”) and the commencement of production. The Formal Off-Take Agreement will be subject to TSX Venture Exchange acceptance.
For over 100 years, guar has been used for multiple applications in the food industry. The Guar bean is principally grown in India and Pakistan and India produces 2.5 - 3.5 million tons of guar annually, making it the largest producer with about 80% of world production. Guar gum is produced from guar beans and the world production of guar gum and its derivatives is about 1.0 million tonnes per year. Industrial guar gum accounts for about 70% of the total demand. Mainly it is used as a proppant transport/proppant suspending agent in the Hydraulic Fracturing Process.
About AGGC (http://www.guarafrica.com/)
AGGC partners with Southern African farms to provide optimized seed stock, monitor farming practices, coordinate processing & refinement, packaging, transport and to establish and manage off-take agreements and final shipping. AGGC currently has +300 South African farmers under contract to grow Guar in partnership with AGGC.
On behalf of the Board of Directors of Prime Meridian Resources Corp.
"Brian Leeners"
Brian Leeners, CEO & Director
For further information, please refer to our website www.primemeridianres.com or contact:
Prime Meridian Resources Corp.
TEL: 604-893-8384 [email protected]
Neither the 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.