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Nevada Clean Magnesium, Inc. (TSXV:NVM,FWB:M1V,OTC:MLYFF) reported the restructuring of its originally announced Joint Venture terms with ScanMag AS: $5 million USD total contribution from ScanMag AS to Nevada Clean Magnesium, payable over 4 years, commencing with the first major payment of $2,000,000 within 12 months; 10% pre-financing equity in ScanMag dilutable down to 2% undiluted interest; NCM and ScanMag will establish a separate technical development company for the testing of aspects of the magensium processing proof of concept through a 50-50 owned Norwegian subsidiary based in Glomfjord, Norway.
The renegotiated terms are as follows:
-$5 million USD total contribution from ScanMag AS to Nevada Clean Magnesium (“NCM”), payable over 4 years, commencing with the first major payment of $2,000,000 within 12 months, followed by 36 monthly payments of $83.3 thousand USD;
-10% pre-financing equity in ScanMag dilutable down to 2% undiluted interest;
-Upon NCM receiving the $5 million USD investment, ScanMag AS will receive 12% of equity shares of NCM;
-NCM and ScanMag will establish a separate technical development company for the testing of aspects of the magensium processing proof of concept through a 50-50 owned Norwegian subsidiary based in Glomfjord, Norway. ScanMag AS is to fund up to $500,000 with an initial $250,000 contribution for the joint venture, after which each party pays its proportional share;
-Both NCM and ScanMag AS will be entitled to the data and findings developed through the joint venture.
Click here to read the Nevada Clean Magnesium (TSXV:NVM) press release