VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 20, 2016) - PNG Gold Corporation (the "Company") (TSX VENTURE:PGK) provides the following additional information pursuant to its previous press release dated November 10, 2016.
Contracts for engineering pre-FEED studies have been entered into with Stantec Engineering ("Stantec") and WSP Canada Inc. ("WSP") to validate the previously modelled second stage design capability of the ReGen™ technology to produce 45% to 53% Group III base oil from used motor oil ("UMO") feedstock in addition to Group II base oil, ultralow sulphur diesel fuel, and asphalt flux from the other two stages in the ReGen™ process.
As stated previously, the Company expects these independent studies, being completed by two of Canada's leading engineering firms, will confirm the capability of the revolutionary ReGen™ technology to produce significant volumes of Group III base oil. Upon completion of these two independent studies, which are projected to take 10 weeks to complete, the Company will select one of these firms to move forward with a full FEED study, from which the Company's Board of Directors will have the necessary information to decide if it should proceed with a change of business application to the TSX Venture Exchange ("TSXV") and proceed with constructing the proposed re-refinery.
Both Stantec and WSP have been selected for this project following a rigorous process. Upon completion of their respective pre-FEED studies, each firm will submit a detailed proposal and will participate in the competitive bid process for the follow-on engineering work, which will include validation of the Company's current projected $85MM capital cost for a 2,800 barrel per day re-refinery.
Santino Pasutto, Oil & Gas manager at Stantec stated, "Stantec welcomes this opportunity to put our specialized knowledge in this field to good work and is privileged to have been engaged in this innovative project. I know that for process engineers this is precisely the kind of project they envision when they decide to pursue this profession. We look forward to building our relationship with PNG, an invaluable industry partner seeking to help grow our economy in new and exciting ways by bringing this cutting-edge facility to Alberta."
The Company believes that with current market prices for the commodity products that the re-refinery will produce, the project payback will be completed within the first year of plant operation.
Additionally, the Company is in negotiation with UMO collection companies to provide the feedstock quantities necessary to support a 2,800 barrel per day re-refinery, as well as also commencing preliminary negotiations with potential purchasers for all of the off-take products that will be produced by the re-refinery.
The Stantec community unites approximately 22,000 employees working in over 400 locations across six continents. Our work - engineering, architecture, interior design, landscape architecture, surveying, environmental sciences, project management, and project economics, from initial project concept and planning through design, construction, and commissioning - begins at the intersection of community, creativity, and client relationships. With a long-term commitment to the people and places we serve, Stantec has the unique ability to connect to projects on a personal level and advance the quality of life in communities across the globe. Stantec trades on the TSX and the NYSE under the symbol STN. Visit Stantec at www.stantec.com or find us on social media.
As a Canadian multinational, WSP is one of the world's leading engineering consulting firms. A leader in transforming the built environment and restoring the natural environment, its expertise ranges from engineering iconic buildings to designing sustainable transport networks, to environmental remediation and urban planning, to developing tomorrow's energy sources and finding innovative ways to extract essential resources. Working with governments, businesses, architects and planners, it provides integrated solutions for all of the markets in which it operates. With 8,100 dedicated professionals in Canada, supported by a worldwide network of 36,500 experts spanning 40 countries, its teams are committed to helping clients succeed no matter how they grow, what they choose to do, or where they move.
On Behalf of the Board of PNG Gold Corporation,
Greg Clarkes, Chief Executive Officer
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.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of PNG Gold Corporation. These include, but are not limited to, completion of the Financing, the receipt of TSXV acceptance of the Financing and the proposed use of proceeds of the Financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update forward-looking statements, except as required by applicable law.