JPX Global Inc. entered into a joint venture agreement with CGrowth Capital Inc. to extract and sell sand and gravel from the 15-acre Chewelah Community Pit located near Colville, Wash.
The initial contract is for the removal of 49,900 cu. yd. of material with a potential gross value exceeding $640,000. The company is working with CGrowth and the Bureau of Land Management (BLM) to increase the quantity of material to be extracted and sold to 2 million cu. yd. over a five-year period.
The contract calls for total payments of $350,000 in working capital to the project within the next 30 days. The company has paid $50,000 toward the initial startup expenses. CGrowth is obligated to oversee and provide operational, on-site and sales support in respect to the Chewelah Community Pit operation. Pursuant to the joint venture agreement, the company will receive 51 percent and CGrowth will receive 49 percent of the net proceeds from the sand and gravel pit.
Chief Executive Officer Jim Foran stated, “We are excited about this division of the company and the opportunity to sell sand and gravel to the regional construction industry, and will be able to announce further developments with this project as the materials are extracted from the Chewelah Community Pit and sold to regional customers.”
Bill Wright, CEO of CGrowth Capital Inc., stated, “The JPX Global team has set themselves apart from others by committing to a project and following through with those commitments. Their management team recognized a good opportunity and an equally committed partner in CGrowth Capital. We are excited about putting the site into production, and in fact, have already delivered heavy equipment to the site. The diversification for CGrowth Capital and our new JV partner should make for an exciting summer.”
JPX Global’s mission is to develop mineral extraction and also to provide municipalities with management and disposal of solid municipal waste, including energy co-generation, according to the company. It’s commitment to the municipality is to provide a cost-effective, green solution to managing waste supply.