Northstar signs LOI with industrial customer for asphalt and other products
by CM Staff
Northstar and the Customer will negotiate the purchase and sale of aggregate and fiberglass materials produced at Northstar's U.S. Facilities.
VANCOUVER — Northstar Clean Technologies Inc. announces that it has signed a non-binding Letter of Intent with a major industrial customer, where the Customer has the exclusive right to purchase recycled asphalt from one or more of Northstar’s future facilities in the United States. In addition, Northstar and the Customer will negotiate the purchase and sale of aggregate and fiberglass materials produced at Northstar’s U.S. Facilities. The LOI outlines the intent of the Parties to enter into a definitive agreement, with a target completion in mid 2023 for an initial term of up to five years.
The Parties also agreed that the price of the asphalt will be market based, including a location and quality differential. Further, the Customer agreed that, so long as Northstar’s asphalt meets its specifications, it will purchase 100% of the asphalt from Northstar’s first location in the United States, up to the produced volume.
Mr. Aidan Mills, President & CEO, and Director of Northstar, stated, “This is a great step for Northstar towards the formalization of a major off-take agreement with a major North American industrial customer for our first U.S. Facilities. We believe that we have the lowest carbon footprint of any commercially available asphalt in North America at a specification that can be blended for use in the (i) paving (ii) flat roof manufacturing, and (iii) shingle manufacturing sectors, and this LOI continues our entry into these sectors. Part of our objectives for next year will now include developing the terms of the LOI into a definitive agreement, therefore securing the binding commercial off-take terms for our first U.S. Facility.”