- CAVU Resources, Inc. (OTC:CAVR) enters a non-binding Memorandum of Understanding (MOU) to acquire a 50% stake in a private micro-grid developer.
- The joint venture aims to leverage 0.5 BCF of high BTU gas reserves for electricity generation through cogeneration.
- The transaction is contingent upon the completion of due diligence, securing financing, and executing definitive agreements.
CAVU Resources, Inc. (OTC:CAVR) has announced the signing of a non-binding Memorandum of Understanding (MOU) with Riverbed Resources LLC to acquire a 50% stake in a privately-held micro-grid developer. This strategic move aims to utilize existing gas reserves and develop recoverable gas from previously drilled wells, enabling electricity generation through cogeneration.
Upon successful completion of the transaction, CAVU would control approximately 0.5 billion cubic feet (BCF) of high BTU gas, intended for immediate conversion into power. The development is a key component of CAVU's aspiration to establish itself as a leader in vertically integrated, independent power production.
The deal is subject to the fulfillment of several conditions, including satisfactory due diligence, securing acceptable financing, and the execution of definitive agreements. Additionally, the company plans to pursue long-term power offtake agreements to ensure stable revenue generation going forward.
In a statement, Billy Robinson, CEO of CAVU Resources, emphasized the company's commitment to building an asset-backed, income-producing organization. He highlighted the potential for growth through this transaction, which is designed to benefit CAVU shareholders through an income-backed, debt-leveraged structure.
