Nevada Clean Magnesium (TSXV:NVM) is focused on becoming a major U.S. producer and distributor of high grade, low cost magnesium. With the world’s mega-producer of magnesium, China, likely to dampen its domestic production, global industrial markets will be looking to new suppliers of the important metal.
Nevada Clean Magnesium has a pending joint venture agreement with ScanMag AS of Norway on the Tami-Mosi Project located in mining-friendly Nevada. Under the terms of the agreement, ScanMag AS will provide the Company with USD $5 million to fund the development of the Tami – Mosi project and assist them with technical expertise to develop their project in Glomfjord, Norway. A 2011 Preliminary Economic Study on Tami-Mosi shows a NI 43-101 compliant inferred resource of 412 million tons with average grade of 12.3%Mg.
Agreement with ScanMag:
In January 2015, Nevada Clean Magnesium signed a revised joint-venture agreement with ScanMag AS, a Norwegian industrial minerals company, in order to better position both companies in the global magnesium market. ScanMag, which is owned by Normin Mine AS and Meløy Naeringsutvikling AS, is working to develop the high-quality dolomite deposit located in the Granåsen field of Nordland County, Norway.
Under the terms of the agreement, ScanMag will contribute USD $5 million over the next four years to fund development. In return, ScanMag will receive 12% of equity shares in Nevada Clean Magnesium.
The joint venture agreement also allows for each company to maintain independence while leveraging each other’s strengths to fast-track the development of, and decrease the cost and risk, for both projects. Both Nevada Clean Magnesium and ScanMag will work together to establish a separate technical development company for the testing of magnesium processing proof of concept through a 50-50 owned Norweigian subsidiary.
Two separate processing facilities are planned which will test and later use the waste heat recovery method outlined in a paper titled,“Waste Heat Recovery Opportunities in a Magnesium Silicothermic Reduction Plant,” presented by James Sever, P. Eng at the TMS 2013 142nd Annual Meeting and Exhibition in March 2013.