Dominion Water Reserves Corp (CSE: DWR) has signed a definitive agreement with that of Aquanor Inc to acquire 11973002 Canada Inc. The arrangement is per the letter of intent signed in August, with the company now set to acquire the subsidiary of Aquanor, which currently owns a 100% interest in the St Joseph de Coleraine water source.
The St Joseph de Coleraine water source features 71 million litres per year of permitted extraction. Notably, the water source has 13 ppm silica content, which is a unique water quality highly sought after in the specialty water market. The mineral boasts bone-strengthening qualities, while also being essential for controlling the flow of calcium through a persons bone structure. It has also been shown to help the heart and immune system.
As part of the acquisition, the company will be entering into a definitive 25 year water sale contract with Aquanor. The specialized water will be sold at $0.005 per litre for the first five years, $0.01 for the next five years, $0.015 for the following five years, and then $0.02 per litre for the final ten years of the arrangement.
“We are pleased to have entered into the Agreement with Aquanor. We have a full end to end strategy for packaging and distributing this prized and highly specialized water. Fiji Water became a global iconic brand because of its’ pure and mineral rich water. We intend to grow North America’s only naturally produced 13 ppm Silicium waters source in a similar fashion through a health and wellness theme.”
Andrew Lindzon, CEO of Dominion Water
Under the terms of the definitive agreement, Dominion Water is to acquire the subsidiary of Aquanor for an aggregate sum of of $650,000. Payment consists of a $150,000 cash deposit which has already been paid by Dominion, as well as the issuance of 714,286 common shares and $150,000 in cash at the time of closing. A final payment of $100,000 is to be made on March 1, 2021.
Dominion Water Reserves last traded at $0.12 on the CSE.
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