June 25, 2013
JPX Global has entered into a joint venture with CGrowth Capital to extract and sell sand and gravel from a pit in Colville, Washington, according to a report from the Wall Street Journal.
The initial contract allows JPX to remove 49,900 cubic yards of material from the 15-acre Chewelah Community Pit for a potential gross value of more than $640,000.
JPX is working with CGrowth and the Bureau of Land Management (BLM) to increase the amount of extracted material to 2 million cubic yards over a 5-year period.
The contract requires JPX to pay $350,000 in working capital to the project within 30 days of entering the joint venture. JPX has paid $50,000 toward initial start-up expenses.
CGrowth will oversee and provide operational, on-site and sales support for the operation.
JPX will receive 51 percent of net proceeds, while CGrowth will receive 49 percent.
For more information, visit jpxglobalinc.com.