Double Crown Resources, Inc. (OTCQB: DDCC), a fully reporting company (hereinafter, "Double Crown"), today announces that a Memorandum of Understanding (MOU) has been executed for the acquisition of Synergy Natural Resources, LLC, a Fayetteville, Georgia-based industrial design & manufacturing company. The MOU will be in effect for a 90 day period after which, Double Crown intends to complete a 100% acquisition of Synergy's corporate assets including full ownership, patent and exclusive marketing rights to its proprietary Portable Aggregate Transport System (PASS Box). The PASS Box represents a new technology with the ability to dramatically improve the speed and efficiency of high volume aggregate material transport.
It is expected that the PASS Box product will meet immediate market demand for a large capacity, single transfer method of shipping hydraulic fracturing (frac) sand or other critical aggregate materials such as barite and guar gum needed in the growing global petroleum drilling markets. There are also major applications in the agricultural sector. Using traditional methods of delivery, industrial minerals must go through anywhere from 4 to 6 handlings which causes increases in cost, product deterioration, liability and time. With the PASS Box system, that number is reduced to 1 handling, thereby providing users with very significant operating and economic advantages as soon as PASS Box is employed.
Since the start of 2012, Double Crown management has been developing its new corporate business venture to service the petroleum producing industry on many fronts including the supply of vital commodities such as high quality frac sand, barite and guar gum powder. The proposed acquisition of Synergy and its PASS Box system will allow fulfillment of the first phase of a 3-year contract currently under development with a major oil and gas drilling company now operating in the Bakken Shale region of North Dakota. A Letter of Intent (LOI) has already been signed for the first production run order of 2000 PASS Box units to meet the initial requirements of this contract. At the intended lease cost of approximately $3000 per unit, per month this would return over $6 million of income per month to Double Crown (over $200 million in total over the 36 month contract period).
Mass production of PASS Box units is planned within a 6 month period. A recent study on the potential applications of this type of system has indicated that the U.S. petroleum industry alone could utilize upwards of 100,000 PASS Box systems. Once full ownership rights are secured, Double Crown intends to utilize PASS Box systems for its own deliveries of frac sand and other commodities and also lease the units to other users. It has been calculated that leasers of PASS Box will see the system pay for itself within 8 months.
Double Crown Director Allen E. Lopez commented, "This plan to acquire, employ and lease the new PASS Box transport system developed by Synergy Natural Resources represents the highest earnings and profit potential that we have become involved with since the start of the company. We intend to release more detailed information on our plans and progress in the near future. From the studies that our management team has completed to date, I can certainly say that the financial return for Double Crown Resources and all its investors here is extremely high. We do have many other projects in various stages of development right now but the Synergy PASS Box project will get top level priority from our President & CEO Jerry Drew, myself and all the other members of our team."