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VANCOUVER, BRITISH COLUMBIA / TheNewswire / October 6, 2015 - Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) ("NCM" or the "Company") is pleased to announce that it has contracted Lindon Acres Enterprises Ltd. ("Lindon") located in Fort St John, British Columbia,to build a bench scale pilot furnace with the technical assistance from James Sever, P. Eng. and Alpha Omega Inc., of Spokane Washington, who is also the company president and director of NCM.
The fabrication of the bench pilot furnace will provide the opportunity to identify and correct potential design flaws when the commercial pilot furnaces are designed and constructed. It is expected that these units will initially be built for the Norwegian facility owned by ScanMag AS.
The bench scale pilot furnace is designed such that it can be configured not only for the basic process, as identified in the Company's NI 43-101 Preliminary Economic Assessment Report, but also modified to continuous operation with steady in - flow of raw materials and out-flow of residue. It should also be possible to test 3 alternate condenser designs.
The dolomite to be used in the test program was obtained from the retained samples of the Tami Mosi drill programs. In accordance with NCM's revised NI 43-101 Preliminary Economic Assessment Study completed July 4, 2014, initial work will utilize ferrosilicon as reductant and produce 99.8 grade magnesium buttons. This is expected to provide the proof of concept that the basic concept to produce the Mg metal from the Tami Mosi dolomite in Nevada is viable. Alternate reductants will also be assessed.
Lindon Acres Enterprises Ltd. will be issued a total of 2 million shares of common stock of NCM as compensation for the services rendered and expenses incurred in the construction of the furnace.
The shares will be issued as follows:
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a.500,000 at the time of completed procurement of materials.
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b.500,000 at the time of completed furnace shell fabrication
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c.1,000,000 at the time of total furnace construction with complete instrumentation.
Construction of the furnace is expected to be completed mid December 2015 and the process testing program is to begin shortly thereafter. This is expected to coincide with the completion of the materials testing program currently taking place by Meloy Innovatation and Technology Center AS (MITC) in Norway. (Refer to the NCM news release dated Sept 23, 2015.)
This transaction is subject to TSX Venture Exchange approval.
Ed Lee, CEO for NCM explains, "We are very excited to be proceeding with the fabrication of this bench pilot furnace. It will allow us to finalize the design of the full scale pilot furnace and provide the opportunity for the testing of alternate reductants and condensers. This will also give us a better understanding of the efficiencies we are expecting to achieve."
"The timing is right for primary magnesium metal production, especially, if it can happen within the USA. The metal has a bright future with more opportunities than ever before. The material applications for magnesium metal are constantly evolving and expanding for three major industry sectors: auto manufacturing to meet the CAFE standards for 2025 by using magnesium to lighten the vehicle weight; the aerospace industry due to the recent acceptance of magnesium for use in passenger spaces in commercial airlines by the Federal Aviation Administration (FAA) and its European counterpart, the European Aviation Safety Agency (EASA); and the energy sector where there is a drive to replace the lithium battery market with a magnesium battery which will be more efficient and environmentally friendly as a power supply for electric cars as well as conventional dry cell applications. For our company to potentially be in the position to help satisfy the upcoming demand and stimulate new applications within the USA is very unique"
About Nevada Clean Magnesium, Inc.
Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high grade, low cost magnesium metal extracted from its 100% owned Tami-Mosi property located in North Central Nevada. Based on the Company's NI 43-101 Preliminary Economic Assessment Report published in September 2011 and amended in July 2014, the Tami-Mosi Project has an inferred resource of 412 million tonnes with an average grade of 12.3% Mg for a contained metal content of 111 billion pounds of magnesium using a 12% cut-off grade contained within a high purity dolomite block. For more information, please visit www.nevadacmi.com.
Qualified Person
James Sever, P. Eng. a qualified person recognized under NI 43-101, supervised the preparation and approves the technical content in this news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include statements about building of a pilot furnace, timing for completion, expected results and benefits of the pilot furnace, that the results will allow us to finalize our full scale furnace design and better understand efficiencies, and that magnesium has increased demand and new applications. .
Actual results may differ materially from those currently anticipated due to a number of factors, including that we may not obtain regulatory approval for the transaction, results may not be as we expect, the pilot furnace may not be completed or may be completed later than expected, the Company's dolomite reserves may not be mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
To Reach Nevada Clean Magnesium Please Contact:
Edward Lee, CEO at 604-210-9862
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