The company announced that the National Research Council of Canada (NRC), under its Industrial Research Assistance Program (NRC-IRAP) will support a project submitted by Mag One Operations, a wholly owned subsidiary of Mag One Products.
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I’m Megan Edwards for Investmentpitch Media
Mag One Products announced that the National Research Council of Canada (NRC), under its Industrial Research Assistance Program (NRC-IRAP) will support a project submitted by Mag One Operations, a wholly owned subsidiary of Mag One Products.
The NRC will contribute on a cost-sharing basis to support the project, entitled "Feasibility - Magnesium Production using Aluminothermic Reduction Process", which is scheduled to conclude during the summer of 2019.
This NRC-IRAP-funded Project represents the first phase of the development and demonstration work towards the low cost, environmentally-friendly production of primary magnesium metal.
Magnesium, often called the metal of the future, is 75% lighter than steel, and 33% lighter than aluminum.
To reach efficiency targets in the auto industry, it is estimated that by 2025, on average each vehicle will use 100 pounds of magnesium.
Dr. Douglas Zuliani, President and Founder of Tech Magnesium, will be intimately involved in the execution of the Project, providing leadership and technical guidance.
In January, Mag One announced an agreement with Tech Magnesium, which during the term of the agreement gives Mag One an exclusive, worldwide license to the Tech Mag Technology, as well as the exclusive right to acquire full ownership of the technology and all associated intellectual property.
The agreement outlined three phases of development and demonstration work with the final phase involving the design, construction and start-up of Mag One’s first 5,000 tonne per year primary magnesium metal module with additional modules being brought online to coincide with market demand.
Gillian Holcroft, President & CEO of Mag One, stated: “We are excited to hit the ground running with this first phase of work. I would like to thank the NRC-IRAP for their valuable support in accelerating this Project. The Tech Mag Technology, coupled with our game-changing, serpentinite mine tailings-to-magnesium oxide (MgO) production technology, is aimed at becoming the lowest-cost, greenest primary magnesium metal produced in the world. The team is ready to get to work on charting a path towards commercialization based upon our low-risk modular expansion plan.”
Mag One has entered into separate agreements to secure exclusive access to tailings from two sites, one in Asbestos, Quebec and one in Thetford Mines, Quebec.
Both have been secured with agreements whereby a payment of $1.00 per tonne is issued for tailings from each site only upon use.
Dr. Douglas Zuliani, President and Founder of Tech Magnesium, added: “A cost-effective MgO aluminothermic reduction process will be highly disruptive for vehicle light weighting. It will enable the widespread adoption of low carbon-footprint ultra-light magnesium alloy components thereby providing significant weight savings at net costs that are estimated to be highly competitive with current vehicle alloys including aluminum and high alloy steel. I look forward to working with the Mag One team to rapidly develop this game changing technology into a commercial reality.”
The company announced a non-brokered private placement and is looking to raise gross proceeds of up to $1 million from the sale of up to 10 million units, priced at $0.10 per unit.
Each unit consists of one share and one warrant, with each warrant exercisable at $0.25 for 12 months.
The shares are trading at $0.065.
For more information please visit the company’s website www.MagOneProducts.com, or email info@MagOneProducts.com. I’m Megan Edwards for Investmentpitch Media
