QUITO, ECUADOR -- (Marketwire) -- 07/11/12 -- BluForest Inc. (OTCBB: BLUF) (OTCQB: BLUF) ('BluForest' or the 'Company') is pleased to announce that it has entered into a Letter of Intent ('LOI') with the Commonwealth of Northern Ecuador wherein BluForest will be granted the rights to carbon credits developed from 1.5 Million hectares of the Commonwealth's lands. Upon certification to REDD+ standards, the LOI assures BluForest a minimum of 3.4 Million carbon credits annually for a period of five years and contemplates a further five year period pending mutual consent.
About the Properties
The Commonwealth of Northern Ecuador is comprised of four Northern provinces including Sucumbios, Carchi, Imbabura and Esmeraldas covering a total landmass of approximately 4.2 million hectares. Some of the most pristine rainforests in the world are located throughout the Northern provinces and their preservation is a key element of BluForest's business objectives.
On announcing the development of this LOI, Mr. Charlie Miller -- CEO of BluForest Inc., stated: 'The development of this LOI between BluForest and the Commonwealth of Northern Ecuador is another clear demonstration of the strong relationships and trust that has been developed between us. The REDD+ standards for carbon credits that we'll develop from these properties will provide a great opportunity to preserve pristine rainforests and their biodiversity while also making vital contributions to the local governments and communities. This is another tangible indicator of our ability to execute our business plans which remain focused on fostering strong partnerships with governments, local municipalities and indigenous peoples,' added Miller.
Terms of the LOI
Under the terms of the LOI, BluForest is granted an option to acquire a minimum of 3.4 Million REDD+ certified carbon credits in each of the next five years under a revenue sharing agreement between BluForest and the Commonwealth of Northern Ecuador. BluForest will assist in completing the REDD+ certification of the properties by advancing funds which will later be recovered through the sale of REDD+ carbon credits.
It is intended by the parties that the LOI will be superseded by a formal agreement within twenty-one days upon completion of due diligence by the parties. BluForest will provide further updates and details of the commercial arrangements by way of news releases and regulatory filings when a formal agreement is signed.
About BluForest Inc.
BluForest Inc. is a development stage company that is a publically traded carbon offsets marketing company. BLUF is executing its strategy to become a leading marketer of carbon offsets in the voluntary markets under the UN principle of Reducing Emissions from Deforestation and forest Degradation. The BluForest website provides further information about the company which prospective investors are encouraged to visit.
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