Nevada Clean Magnesium, ScanMag AS of Norway Form JV

- October 16th, 2013

Nevada Clean Magnesium (TSXV:NVM) said Wednesday that it has signed an agreement with ScanMag AS, a Norwegian industrial minerals company, to form a joint venture to produce magnesium for the North American and European industrial markets.

Nevada Clean Magnesium (TSXV:NVM) said Wednesday that it has signed an agreement with ScanMag AS, a Norwegian industrial minerals company, to form a joint venture to produce magnesium for the North American and European industrial markets.

As quoted in the press release, under terms of the agreement:

  • The formation of a joint venture, wherein Nevada Clean will own a 51% controlling stake and ScanMag will own 49% of the Company’s Nevada dolomite deposit;

  • ScanMag to pay $5 million USD in cash consideration to Nevada Clean;

  • ScanMag to issue Nevada Clean a 5% equity stake in ScanMag;

  • Nevada Clean to issue ScanMag restricted shares of its common stock equal to 19% of the total number of shares of common stock issued and outstanding at the time the letter agreement was signed; and

  • ScanMag to have the right to appoint one representative to Nevada Clean’s Board of Directors and retain this Board seat so long as it maintains at least 15% equity ownership in the Company.

Click here for the full press release by Nevada Clean Magnesium Inc (TSXV:NVM)

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