8-K/A: Verde Resources Extends Term Sheet with C-Twelve Following Successful Carbon Sequestration Demonstration

Verde Resources, Inc. extends its term sheet with C-Twelve Pty Ltd until May 31, 2025, after a successful proof-of-concept demonstration of carbon sequestration technology.

Summary

• Verde Resources, Inc. has filed an amendment to its previous 8-K report regarding a term sheet with C-Twelve Pty Ltd.
• The term sheet outlines a framework for a definitive agreement between the two companies.
• A proof-of-concept demonstration was successfully completed at the National Center for Asphalt Technology (NCAT) on December 20, 2024, achieving approximately eight (8) tons of carbon sequestration.
• NCAT is currently assessing the technology's performance.
• Legal representatives are finalizing the definitive agreement.
• The term sheet, originally set to expire on February 28, 2025, has been extended until May 31, 2025.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the successful demonstration and the extension of the term sheet, indicating progress towards a definitive agreement. However, the deal is not yet finalized and is subject to approvals.

Positives

• The successful proof-of-concept demonstration at NCAT indicates the potential viability of the carbon sequestration technology.
• The extension of the term sheet suggests continued commitment from both parties to finalize the definitive agreement.
• The achievement of approximately eight (8) tons of carbon sequestration during the demonstration is a positive outcome.

Risks

• The definitive agreement is still subject to final approvals from legal teams and boards of directors, introducing uncertainty.
• The ongoing assessment by NCAT could reveal unforeseen issues with the technology's performance.

Future Outlook

The companies are working towards finalizing a definitive agreement, contingent on legal and board approvals, to formalize their commitments and activities related to carbon sequestration technology.

Management Comments

• Jack Wong, Chief Executive Officer, signed the report on behalf of Verde Resources, Inc.

Industry Context

Carbon sequestration is a growing area of interest as companies and governments look for ways to reduce carbon emissions. This agreement positions Verde Resources to potentially capitalize on this trend.

Comparison to Industry Standards

• It's difficult to compare the eight tons of carbon sequestration directly without knowing the scale of the demonstration project and the specific technology used.
• Companies like Carbon Engineering and Climeworks are working on direct air capture technologies, while others focus on nature-based solutions like afforestation.
• The success of Verde Resources' technology will depend on its cost-effectiveness and scalability compared to these alternatives.

Stakeholder Impact

• Shareholders may see potential long-term value if the carbon sequestration technology proves successful and the definitive agreement is finalized.
• Employees of Verde Resources and C-Twelve may be involved in the development and implementation of the technology.
• The agreement could potentially benefit the environment by contributing to carbon emission reduction efforts.

Next Steps

• Finalization and execution of the definitive agreement between Verde Resources and C-Twelve.
• Continued assessment of the carbon sequestration technology's performance by NCAT.
• Obtaining final approvals from legal teams and boards of directors for the definitive agreement.

Key Dates