Nevada Clean Magnesium Enters Into Memorandum of Understanding with Big Blue Technologies LLC
(via TheNewswire)
VANCOUVER, BRITISH COLUMBIA / TheNewswire / February 06, 2017 - Nevada Clean Magnesium, Inc. (TSXV:NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (the "Company" or "NCM") is pleased to announce it has entered into a binding Memorandum of Understanding ("MOU") for the purposes of forming a technical joint venture with Big Blue Technologies LLC ("BBT"), of Broomfield, Colorado, USA.
BBT is a closely-held limited liability company engaged in developing high temperature chemical processing solutions to aid in the manufacture of magnesium and other light-weight high performance materials. BBT is collaborating and expanding on research performed at the University of Colorado at Boulder on carbothermic reduction (the "BBT Process"), the subject of two patent applications. BBT has the right to receive a license to use of these patents, and derivative patents, on an exclusive basis.
NCM, primarily through the auspices of James Sever, has acted as a mentor to BBT and its three principals in their efforts to develop the BBT Process. Both parties desire to cooperate in the development, testing and improvement of safe, environmentally sound and cost-effective methods for the production of magnesium for their mutual benefit, following which they intend to work together to produce magnesium metal from the resource property owned by NCM, as set forth in a definitive agreement to be completed on or before August 1, 2017.
Both parties intend to work together to further develop the NCM Process, the BBT Process and the Alpha Condenser, also in accordance with the Definitive Agreement.
Therefore both Parties have agreed to the following within the MOU:
-
1.BBT and NCM's technical teams will collaborate to enhance each others' respective processes in order to try and achieve successful commercialization for earlier cash flow
-
2.NCM will be BBT's industry partner
-
3.NCM to provide BBT board positions and stock options
-
4.NCM will have first right of refusal to exclusivity and licensing of the BBT process
-
5.The BBT principals will provide their grant writing abilities to NCM for potential research grants and US loan guarantees that are available for new magnesium metal projects within the United States
-
6.NCM, through a revenue share agreement, will grant access of the Tami-Mosi magnesium property to BBT in order to commercialized its process
-
7.NCM will issue 15% of the Company's total common shares issued as of January 1, 2017 to BBT released at increments of 5% per year over a 3 year period.
Aaron Palumbo, CEO of BBT states "Nevada Clean Magnesium has exhibited nothing but the highest order of integrity with respect to its pursuit of magnesium production. We are honored to be a part of a project that aligns with our own vision and values. Together, our intellectual capital will be used to show how the U.S. can be a leader in production of this industrial light metal."
James Sever, the Company's COO states "The work that BBT has demonstrated is a unique approach to the carbothermic reduction process. Successful implementation will revolutionize the magnesium production industry through a significant reduction in cost. In addition, access to BBT personnel will strengthen NCM by providing access to an ambitious, capable young intellectual reserve. This should keep our Company ahead of the curve for many decades."
Edward Lee CEO says "This is a natural fit for both companies looking to produce magnesium metal within the United States. Our combined talents and assets fit perfectly with Americas' goal to repatriate industry to the US from overseas. Over the past few decades, primary magnesium production in the US has declined from 65% of world supply to approximately 6%. This exciting partnership between NCM and BBT will help America achieve its goals."
The MOU is subject to approval from the TSX Venture Exchange.
About Big Blue Technologies LLC
BBT is a closely-held limited liability company formed under the laws of Colorado, U.S.A. It is engaged in developing high temperature chemical processing solutions to aid in the manufacture of magnesium and other light-weight high performance materials. Together with the University of Colorado, BBT has developed, and the University of Colorado has applied for two patents related to the production of magnesium, primarily using the chemistry known as carbothermic reduction. BBT has the right to receive a license to use of these patents, and derivative patents, on an exclusive basis as it continues to develop this technology.