Atlas Salt and Scotwood Industries Sign MOU for Strategic Salt Production Offtake & Canadian Joint Venture for Packaged Salt and Related Products
TSXV: SALT
100 New Gower Street, Suite 910
St. John’s, NL A1C 6K3
Telephone: (709) 739-9545
AtlasSalt.com
FOR IMMEDIATE RELEASE
Atlas Salt and Scotwood Industries Sign MOU for Strategic Salt Production Offtake
& Canadian Joint Venture for Packaged Salt and Related Products
St. John's, Newfoundland and Labrador – August 20, 2024 - Atlas Salt Inc. (“Atlas
Salt” or the “Company”) (TSXV: SALT; OTCQB: REMRF) is pleased to announce that
the Company has entered into a non -binding Memorandum of Understanding
(“Non-Binding MOU”) with Scotwood Industries LLC (“ Scotwood”) to establish a
strategic salt production offtake agreement and joint venture for the distribution and
sale of packaged salt and related products (“Products”) in Canada.
The Non -Binding MOU does not include the sale of bulk road de -icing salt and
excludes the provinces of Newfoundland & Labrador, Prince Edward Island, New
Brunswick and Nova Scotia , subject to certain exceptions with respect to national
accounts and expansions of existing relationships that Scotwood has with retailers
in the United States that have Canadian affiliates doing business in those provinces.
The Joint Venture would target annual sales volumes for the strategic offtake and
distribution of Products of 1.25 to 1.50 million tonnes per annum (“ Mtpa”), subject
to market conditions.
About Scotwood:
Scotwood is an industry leader in the marketing and distribution of salt products in
the United States, successfully operating since 1980. Scotwood is the largest
packaged retail de-icing distributor in the United States, with a loyal customer base,
including leading b ig box mass merchandisers, DIY, farm and home, grocery,
hardware and automotive chains, with existing relationships averaging over 20 years.
In the United States, Scotwood utilizes a unique marketing strategy, partnering with
nationally recognized consumer brands, ensuring consumer brand recognition and
quality.
For more information about Scotwood in the United States, please visit
https://scotwoodindustries.com.
TSXV: SALT
100 New Gower Street, Suite 910
St. John’s, NL A1C 6K3
Telephone: (709) 739-9545
AtlasSalt.com
About the Strategic Salt Production Offtake & Canadian Joint Venture (the
“Business”):
The Business would take advantage of Scotwood’s deep industry and client expertise,
and Atlas Salt’s long-life, low-cost, proximal supply to strategically serve the Canadian
retail market for the distribution and sale of Products.
Atlas Salt and Scotwood would evaluate the overall Canadian market for Products to
determine annual sales volume, as well as client and pricing targets for the Business,
with a target product distribution volume of 1.25 to 1.50 Mtpa.
The Joint Venture would exclusively source all salt for the Products from the Great
Atlantic Salt Project through a Strategic Salt Production Offtake Agreement.
About the Non-Binding MOU:
Atlas Salt and Scotwood intend to exclusively work together to negotiate binding
agreements establishing and governing the Joint Venture and the Strategic Offtake,
with the intention that the parties will share management of the Joint Venture and
share profits equally after reasonable recovery of costs.
Rick LaBelle, Atlas Salt CEO, commented: “ Since I joined the Company, I’ve been
focused on opportunities in the retail market, where supply is more predictable, and
margins are generally higher. Atlas is excited to work with Scotwood Industries, the
largest packaged retail de-icing business in the United States, on a mutually beneficial
strategic offtake and joint venture to provide tailored packaged salt solutions for the
Canadian marketplace, by leveraging Atlas Salt’s high -quality, made-in-Canada salt
and Scotwood’s brand strategy, industry expe rtise and reputation for superior
customer service.”
Chase Wilson, President of Scotwood, commented “Being the largest distributor of
packaged retail de -icing salt in the United States we are very selective in choosing
new business partners. If completed, we believe Atlas Salt’s long life underground
salt project would make Atlas Salt an ideal long-term partner for us in Canada.”
For further information and ongoing updates, please visit https://atlassalt.com/.
TSXV: SALT
100 New Gower Street, Suite 910
St. John’s, NL A1C 6K3
Telephone: (709) 739-9545
AtlasSalt.com
About Atlas Salt Inc.
Atlas Salt Inc. is developing Canada’s next salt mine and is committed to responsible
and sustainable mining practices . With a focus on innovation and efficiency, the
company is poised to make significant contributions to the North American salt
market while upholding its values of environmental stewardship and community
engagement.
For information, please contact:
Richard LaBelle, CEO
(709) 739-9545
We seek safe harbor.
Cautionary Statement
Neither the TSX Venture Exchange nor its Regulation Services Provider, (as the term is
defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release. This press release includes certain “forward -looking
information” and “forward-looking statements” (collectively “forward-looking statements”)
within the meaning of applicable Canadian securities legislation. All statements, other
than statements of historical fact, included herein, without limitation, statements relating
to the future operating or financial performance of the Company, are forward -looking
statements. Forward -looking statements are frequently, but not always, identified by
words such as “expects”, “anticipates”, “believes”, “intends”, “e stimates”, “potential”,
“possible”, and similar expressions, or statements that events, conditions, or results “will”,
“may”, “could”, or “should” occur or be achieved. Forward-looking statements in this press
release relate to, among other things: complet ion, delivery and timing of project
components and requirements, and analysis and assumptions related thereto. Actual
future results may differ materially. There can be no assurance that such statements will
prove to be accurate, and actual results and fut ure events could differ materially from
those anticipated in such statements. Forward -looking statements reflect the beliefs,
opinions and projections on the date the statements are made and are based upon a
number of assumptions and estimates that, while considered reasonable by the respective
TSXV: SALT
100 New Gower Street, Suite 910
St. John’s, NL A1C 6K3
Telephone: (709) 739-9545
AtlasSalt.com
parties, are inherently subject to significant business, technical, economic, and
competitive uncertainties and contingencies. Many factors, both known and unknown,
could cause actual results, performance or achievements to be materially different from
the results, performance or achievements that are or may be expressed or implied by such
forward-looking statements and the parties have made assumptions and estimates based
on or related to many of these factors. Such factors include, without limitation: the timing,
completion and delivery of required permits, supply arrangements and financing. Readers
should not place undue reliance on the forward -looking statements and information
contained in this news release concerning these times. Except as required by law, the
Company does not assume any obligation to update the forward -looking statements of
beliefs, opinions, projections, or other factors, should they change, except as required by
law.