Wellgreen Platinum Signs MoU for LNG Supply With NLE

Wellgreen Platinum said that it has signed a Memorandum of Understanding with Northern Lights Energy for the potential supply of liquefied natural gas from Alaska to the Wellgreen PGM-Nickel-Copper project in Canada’s Yukon Territory.

The company has also signed an MOU agreement with General Electric Canada for the potential supply by GE of LNG power generation equipment and services, which the company expects would include GE’s comprehensive electrical infrastructure technology for the mine processing equipment, transmission technology and control & automation equipment.

Together, these MOUs establish the framework for LNG supply and power generation to meet Wellgreen Platinum’s goal of delivering cost effective and environmentally responsible energy for the Wellgreen project, where construction activities are anticipated to start as early as 2016.

MOU with Northern Lights Energy and the Interior Energy Project

In April 2013, the State of Alaska Legislature approved the Interior Energy Project to provide financing for the development of a natural gas liquefaction plant to be located on the North Slope of Alaska as part of a larger initiative to bring affordable, clean burning natural gas from Prudhoe Bay to the interior of Alaska.

In January 2014, the AIDEA Board selected Colorado-based strategic consulting, engineering and construction firm MWH Global as its private sector partner for the Interior Energy Project and Northern Lights Energy was established as a special purpose vehicle to serve as the project company.

The purpose of the MOU with Northern Lights Energy is to establish a framework for delivery of LNG to the Wellgreen project consistent with the goals of the Interior Energy Project that requires that LNG from the project be supplied to certain, specified customers in Alaska on a priority and preferred basis. It is anticipated that the project, after it meets these preferred customers’ needs, will have additional supplies of LNG that Wellgreen may purchase under the terms of the MOU. The parties will also work together to determine if there are opportunities to make Alaskan LNG available to provide clean and competitively priced power to communities in the Yukon along the Alaska Highway, such as the Kluane and White River First Nations.

“The MOU between Northern Lights Energy is beneficial not just for Wellgreen, but for Alaska,” said Rick Adcock, Managing Director of Northern Lights Energy. “We look forward to working with the Wellgreen team as we move forward with our commitment to the Interior Energy Project.” he added.

Wellgreen Platinum’s President & CEO, Greg Johnson, states, “We are very pleased with this agreement with Northern Lights Energy which fits Wellgreen Platinum’s timelines and objectives of utilizing a cost effective and environmentally responsible source of energy for the Wellgreen project. We believe this supply of LNG may potentially bring additional benefits from the Interior Energy Project to both Alaskans and to Yukon communities along the Alaska Highway, which currently rely on more expensive and less environmentally friendly diesel for power generation. This agreement also demonstrates the opportunities for other infrastructure-related cross-border working relationships that can benefit communities in the Yukon and Alaska.”

MOU with General Electric Canada for LNG Power Generation and Electrical Equipment

Wellgreen Platinum has also entered into an MOU with General Electric Canada. Under the terms of the agreement, GE would provide products and services for the Wellgreen project, including a complete power generation and transmission network for the project. GE is one of the largest companies in the world and a leading power and automation technology authority.

GE’s products include a full suite of integrated power and automation components, including GE Jenbaucher natural gas generators, main substations, all applicable motors, drives, motor control centres and controls throughout the mine surface plants and underground. The two parties will also work together in the consideration of the design of control systems, substations and field bus connected devices, utilizing GE’s technology.

“We look forward to partnering with Wellgreen Platinum to advance the Wellgreen project toward production,” said David Willick – GE Mining Regional Commercial Director. “GE has vast industry experience and a comprehensive array of automation and power offerings that enable us to provide the robust solutions required for these large scale projects. We recognize the importance of the Wellgreen project, not only to Wellgreen Platinum but to the local and territorial communities as well as to the global supply of key commodities.”

John Sagman, COO of Wellgreen Platinum notes “Our agreement with GE has the potential to expedite development of the Wellgreen project as an efficient, safe and sustainable operation. In addition to their leading-edge technology, GE also has the capability to provide vendor financing packages, maintenance packages and opportunities to provide power generation solutions to the First Nations communities near the Wellgreen project.”

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Press Release, June 5, 2014