Freestone Resources, NatGas Sign Lease for Tire Shredding Machine



Freestone Resources signed a lease agreement with a purchase option with NatGas Leasing for a tire shredding machine capable of shredding up to 60 tons of used tires per day.

The new shredder will substantially increase the output of shreds from the plant to be sold from the facility.

The agreement is one of three deals Freestone recently signed to improve its operations at its wholly-owned facility, Complete Tire Recovery, and derive additional revenue from the sale of products produced at the facility.

CTR is a full-service tire recycler, licensed transporter and processor of scrapped tires located on 10 acres with over 34,000 square feet under roof in Ennis, TX.

Michael McGhan, CEO of Freestone, said, “After much negotiation, I am pleased to announce that we have worked out a settlement with the note holder of the property in Ennis and all back payments have been made and the note is no longer in default.

“Freestone has arranged for purchasers of the shreds who will purchase as much of the shreds that Freestone can produce. This arrangement will generate substantial income to Freestone that will allow us to meet our obligations as well as further expand our current operations.

“Lastly, Freestone executed two working capital notes that will provide $250,000 in working capital to improve its overall operations by upgrading equipment and adding additional personnel to help increase sales. One of the working capital notes, in the amount of $150,000, was provided by Dynamis Energy, indicating their ongoing commitment to work with Freestone toward a merger, as announced previously. In addition, a major shareholder in Freestone also provided a working capital note of $100,000, indicating ongoing confidence in the ability of Freestone to improve its overall operations and increase shareholder value.”

Freestone Resources is a Dallas-based oil and gas technology development company. The company focuses on developing new technologies that allow for the utilization of resources in an environmentally responsible and cost-effective way.


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