Nevada Clean Magnesium Renegotiates Joint Venture Terms with Scanmag as of Norway
17 Avril 2014 - 10:53PM
Access Wire
VANCOUVER, BC / ACCESSWIRE / April 17, 2014 /
Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink
Sheets: MLYFF) (the "Company") today announced that following
further discussions, the Company has revised terms of its
originally announced Joint Venture terms with ScanMag AS of
Norway.
The renegotiated terms are as follows:
-5 million USD total contribution from ScanMag AS to Nevada
Clean Magnesium (NCM)
-$150 thousand USD advance upon signing the JV as operating
capital to NCM, while ScanMag completes its financing
-An additional 2% undiluted interest of ScanMag AS to NCM for a
total of 7% of ScanMag
-ScanMag's initial interest in the Tami-Mosi Project will be
40%
-Upon NCM receiving the $5 million USD investment, ScanMag will
receive 19% of equity shares of NCM
-ScanMag will have access to the NCM Technical Staff by way of
the signing of a technical agreement between the two companies for
ScanMag's facility development in Glomfjord, Norway.
Nevada Clean will have the right to either agree to an extension
or terminate the agreement if the total $5 million USD payment is
not received by October 15, 2014.
As a point of clarification per the "Binding Letter of
Agreement" previously announced, ScanMag AS has agreed not to
purchase NCM common stock on the open market until such time as the
Joint Venture Agreement has been finalized.
The board of directors of both companies have approved the new
terms of the Joint Venture terms and the form of agreement is
currently is under review by ScanMag's attorneys. Notwithstanding
any unexpected delays, the final execution of the Joint Venture
Agreement is expected to occur in May.
The original Joint Venture terms were announced in a news
release dated October 15, 2013 and can be viewed on the Company
website.
"We at ScanMag consider it very important to find the right
projects and pick the right partners to help us succeed. With our
planned Glomfjord magnesium plant project paired with Nevada Clean
Magnesium as our partner, we are confident that this JV will allow
us to combine and leverage resources, eliminate redundancies and
mutually exchange knowledge. This partnership provides us with the
strength and support necessary to resolve technical and
manufacturing challenges, which in turn allow us to effectively
establish the plant, promote job creation and create economic
benefits for the region," stated Lothar Maruhn, CEO of ScanMag
AS.
"We have worked very hard to come to terms on the JV Agreement
and while the discussions between our two parties have been
extensive, it was well worth the work. This partnership provides
our technical staff with the platform to develop and operate the
process within their facility, which will significantly lower the
technical and investment risks associated with the development of
the Tami-Mosi Project. This will be a very exciting time for not
only both companies, but for the shareholders of Nevada Clean
Magnesium as well. I look forward to what the future holds for our
two companies," commented Edward Lee, CEO of Nevada Clean
Magnesium.
The Joint Venture transaction with ScanMag remains subject to
TSX Venture Exchange approval.
About Nevada Clean Magnesium, Inc.
Nevada Clean Magnesium is focused on becoming a major U.S.
producer and distributor of primary, high grade, low cost magnesium
extracted from its 100% owned Tami-Mosi property located in North
Central Nevada. Based on the Company's NI 43-101 Preliminary
Economic Assessment Report published in late 2011, the Tami-Mosi
Project has an inferred resource of 412 million tonnes with an
average grade of 12.3% Mg for a contained metal content of 111
billion pounds of magnesium using a 12% cut-off grade contained
within a high purity dolomite block. For more information, please
visit www.nevadacmi.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking Statements
Statements in this news release that are not historical
facts are forward-looking statements that are subject to risks and
uncertainties. Forward-looking statements in this news release
include statements about the closing a joint venture and private
placement.
Actual results may differ materially from those currently
anticipated due to a number of factors, including that we may not
be able to agree on final terms with ScanMag, that ScanMag may not
raise the necessary funds to invest, that the Company's dolomite
reserves may not mined because of technical, regulatory, financing
or other obstacles, the market price for magnesium may make our
resources uneconomic, and other risks associated with being a
mineral exploration and development company. These forward-looking
statements are made as of the date of this news release and, except
as required by applicable laws, the Company assumes no obligation
to update these forward-looking statements, or to update the
reasons why actual results differed from those projected in the
forward-looking statements.
SOURCE: Nevada Clean Magnesium, Inc.
Nevada Clean Magnesium Inc. (TSXV:NVM)
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