MMEX Resources Corp (MMEX)

[I FAR I]

Indeed...MMEX refinery aims for 2020 opening...aka "The Patience Play"!

http://www.fortstocktonpioneer.com/stories/mmex-refinery-aims-for-2020-opening,22465?

Jack W. Hanks knows: Actual construction will take 12-15 months, with a target of the second quarter of 2020 for the refinery to be operational, Hanks said, noting that the project is nine to 12 months behind where he would like to be.

“The public should understand that there will be surface work going when we are starting out,” Hanks said. “They just won't see a tower jumping up. Fabrication of parts will be done in Houston and other places. Typically, it can take 10 months to build those. Fabrication is done at steel shops and other places. All these components will be, by and large, built in other locations.

“I don't want people to expect that once we start, it will all just spring up,” he said. “We're building from the ground up.”

The financing will be 80 percent debt and 20 percent equity. Investors are awaiting the “take-off agreements” – signed deals to purchase products produced at the refinery – and for the final costs under the EPC before finalizing financing.

MMEX Resources Completes All Agreements To Sell Its Planned West Texas Refinery Products:
https://www.barchart.com/story/stocks/quotes/MMEX/news/3274642/view

Complex process

Hanks said that a special purpose vehicle company, Pecos Refining and Transport LLC, was established to operate as a privately held entity for investors. MMEX is the largest equity owner of in the LLC, so a share of the profits from that entity will go to MMEX and its shareholders.

The financing will be 80 percent debt and 20 percent equity. Investors are awaiting the “take-off agreements” – signed deals to purchase products produced at the refinery – and for the final costs under the EPC before finalizing financing.

“The investors need to see the rest of the pieces fall into place,” Hanks said. “... they need a wrap and a guarantee of what prices are and the performance bonds. It's 'Project Financing 101', it's simple, but complex.”

MMEX completes deals to sell all products from Pecos Refinery project:
https://www.mrt.com/business/oil/article/MMEX-completes-deals-to-sell-all-products-from-14089467.php

The key hurdle was obtaining air emission permit from the Texas Commission on Environmental Quality (TCEQ). The TCEQ is empowered by the federal Environment Protection Agency to grant such permits in the state.

“Once you have that, you can start start construction,” Hanks said. “There will be some local permits once construction starts, but the big ticket is getting TCEQ.”

Building in the United States, where a new refinery has not been built in 40 years, also posed challenges.

“We know about construction, development, and financing,” Hanks said. “We didn't know all the steps it would take – that was a learning curve for us. This is not a complicated project. But no one has done it before (in the U.S.) that is really just like it. There's a lot of noise from people sitting on the sidelines – 'how do you know it will work', 'why isn't it built yet', 'why don't you have the financing yet?'.

“Look, we did this in the middle of jungle in Peru. We can do it here.”

The Peru refinery was built on time and on budget in 18 months, but it took two years the get everything to the point that construction could start.

The Texas Pacifico-South Orient Railroad line that runs through the site will have about 9 miles upgraded by the railroad. He also said MMEX will add a spur to the site as part of the project's cost.

The railroad access allows connections to prime ports along the Gulf of Mexico and also affords transit to the Dallas-Fort Worth area and Mexico via the Presidio border crossing. That will open the door to both domestic and export distribution.

https://www.mmexresources.com/
MMEX RESOURCES
Leveraging Global Demand
for Energy Assets Located in the Americas.

"This is a great project. It has robust economics in it." - Jack Hanks

MMEX...You've Been BLESSED!