MGX Minerals Inc MGXMF

RE:RE:Lithium Brine Agreement with Major Oil and Gas Operator

[Bluebirds]

Translated from  https://www.wallstreet-online.de/nachricht/9158036-1-deal-major-mgx-minerals-lithiumsole-bedient

With a market capitalization of $ 21 million CAD today reported MGX Minerals Inc. (CSE: XMG; Frankfurt: 1MG, WKN: A12E3P) on a major agreement with the oil and gas company that the Sturgeo operates Lake oilfield in Alberta: Canadian Natural Resources (NYSE: CNQ; Frankfurt: CRC, WKN: 865 114), which has a market capitalization amounting to USD $ 37 billion and already significant local infrastructure in operation has. MGX Minerals owns on the same plot only the lithium-containing brine rights and not the rights for oil and gas.

The concluded agreement provides for Canadian Natural Resources to withdraw several samples from its sources, both on the production floor and in other areas of the formation where MGX has made the lithium-rich sols. MGX has already announced that it will produce lithium for the first time in the coming year.

The initial lithium production with a pilot plant will take place in the next or immediately after Canadian Natural Resources has delivered the samples to MGX. In mid-November , it was reported that the pilot plant is completed to 50% and was soon ready to use. With a capacity of 12,000 liters of brine per day, the plant can be successfully expanded to a commercial processing capacity of 1.2 million liters.

If the production is successful or profitable, not only can the commercial production be started quite quickly, but also the large lithiumressouce of the Sturgeon Lake property can be officially made. A few months ago a resource estimate was calculated: 2 million tonnes of lithium carbonate equivalents ("LCE"). But the regulators said that this can not be classified as a NI43-101 resource because no processing method has been described to elicit the lithium from the brine.

2 million t of LCE have an intrinsic value of $ 24 billion for a lithium carbonate price of $ 12,000 USD / t. Joe Churry of Oilprice.com today wrote a worthy article about MGX's project, which has been translated into German and is available below. He estimated that with a lithium content of only 50 mg / L and processing of 1 million liters per day, more than 14,000 tonnes of lithium carbonate could be produced each year, generating revenues of more than $ 170 million a year $ 12,000 USD / t LCE).