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CARBON NEUTRAL ROYALTY AQUIRES CARBON CREDIT STREAM ON THE MOZBAN PROJECT
March 7, 2022—London, United Kingdom: Carbon Neutral Royalty Ltd. (“CNR” or the “Company”) (Private) is pleased to announce it has entered into an Investment Agreement Partnership with Mozban Limitada (“Mozban”) for the development of a 30,960 hectare REDD+ avoided deforestation & sustainable agriculture carbon offset project in Inhambane, Mozambique. Mozban holds the project area under a 49-year lease which can be further extended.
INVESTMENT HIGHLIGHTS:
- CNR will fund the development of the project for up to an estimated $335,000.
- Project length of 49 years with the right to extend the project for successive 10-year periods.
- Third party pre-feasibility study completed, estimating an average of 25,000-35,000 Verified Carbon Units (“VCU”) per year over a 20-year period under the Verra VCS Standard with the potential for an average of 75,000 VCUs/annum.
- The project feasibility remains subject to further assessments and a project design document.
- CNR will be entitled to receive 100% of the issued credits until a compounded annual return on investment of 10% is received. Thereafter, CNR will be entitled to receive 50% of all credits produced over the life of the project.
- Estimated start date in 2024
- CNR will be entitled to receive 15% of all issued credits on future projects developed by Mozban in Mozambique for no additional payment.
Brett Heath Chairman of Carbon Neutral Royalty commented “Mozambique has 40 million hectares of forests and a high rate of deforestation. CNR plans to develop a conservation and Sustainable Agricultural Land Management (SALM) project in the heart of northern Mozambique, using a repeatable framework for potential future expansion”
The REDD+ Framework developed by the UN convention on Climate Change will be used to define the project. The project is anticipated to be certified through the Verra Verified Carbon Standards.
ABOUT MOZBAN
Mozban holds a long-term lease on several parcels in Southern Mozambique Inhambane province covering a total area of 30,960 hectares. This area is used for extensive cattle ranching on semi-natural, degraded dry forest with grasslands (savannah), which could become a conservation & Sustainable Agricultural Land Management (SALM) project. The project owner has a management team on the ground and other land holdings in Southern Mozambique. This experience and other land holdings provide the potential opportunity for a diversified investment in carbon, agroforestry, and other project activities beyond cattle grazing. The project has the potential to be a grouped project and expand in future instances to further grazing areas.
ABOUT CARBON NEUTRAL ROYALTY
Carbon Neutral Royalty was founded in July 2021 by an experienced team and is assembling a high-quality, long-life, portfolio of carbon credit streams and royalty projects across the world. Our goal is to increase shareholder value by adding accretive acquisitions to our diversified portfolio of assets, focusing on the most experienced developers.
For further information, please visit our website at www.carbonneutralltd.com.
ON BEHALF OF CARBON NEUTRAL ROYALTY LTD.
(signed) “Brett Heath”