Carbon Streaming Announces Term Sheet and Royalty Agreement With Future Carbon Group
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Term Sheet includes US$3M Royalty in Four REDD+ Projects in the Brazilian Amazon
Carbon Streaming and Future Carbon also Partner to Advance the Development of the Bonobo Peace Forest Projects
Investment Highlights:
- The Company made a payment of US$3.0 million on signing the Term Sheet in exchange for a 5% royalty on carbon credit revenues generated by Future Carbon from the Projects.
- Carbon credits will be generated from four REDD+ projects located throughout the Brazilian Amazon and registered with Verra, with SocialCARBON as the co-benefit standard.
- The Projects are in advanced stages of registration and verification with Verra, with first credits on some projects having been issued in the third quarter of 2022. Given the Projects’ locations and co-benefits, the credits are expected to command premium pricing. The Company expects to receive revenue from the FC Amazon Portfolio Royalty in 2023.
- As part of the long-term partnership with Future Carbon, Carbon Streaming expects the FCG Amazon Portfolio Royalty to be foundational for a stream agreement on the Projects in the near future.
- Carbon Streaming and Future Carbon have also agreed to partner in advancing the development of the Sankuru Nature Reserve and the Kokolopori Reserve carbon projects of the Bonobo Peace Forest (the “Bonobo Peace Forest Projects”) in the Democratic Republic of Congo (the “DRC“).
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