(via Thenewswire.ca)
VANCOUVER, BRITISH COLUMBIA / TheNewswire – July 19,
2016 – Nevada Clean Magnesium, Inc.
(TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (The “Company”) today announced that it has amended certain
terms of its Research and Development Joint Venture with ScanMag AS of Norway dated June 18, 2015 (the “R&D
Agreement”).
Under the terms of the R&D Agreement, ScanMag was to make an initial payment of USD$2,000,000
to NVM within 12 months, based on the assumption that certain research and development would have been completed within the
timeframe of the agreement. Unfortunately difficulties with the equipment and research contractor has failed to provide the needed
information. In order to permit further testing of the alternate reductant and allow sufficient time for ScanMag to submit funding
grant applications to Enova As (a development bank in Norway) for $400 million NOK (approx. $45 million USD) to the construct full
scale pilot furnaces to be operated and commercialized at ScanMag’s facility in Norway, the parties have agreed to extend the
time for the payment to NVM until December 18, 2016.
In addition, the parties have agreed that the joint venture operator under the R&D
Agreement, Meloy Innovation and Technology Centre AS (MITC), is responsible to pay for the new reductant
testing program to be completed by the research lab of the University of Colorado, for the salary and travel costs of James Sever
to oversee that testing, and contribute $20,000 CDN toward the planning and fabrication of NVM’s bench scale furnace currently
being built in British Columbia. In other respects, the R&D Agreement remains in effect as before.
Lothar Maruhn of ScanMag AS states “ We remain strongly committed to completing the joint venture
between ourselves and Nevada Clean. Confirmation of the alternate reductant is a very important step for us and completion of the
work will allow us to accelerate the commercialization of the process which benefits both our
companies.”
Edward Lee, CEO of the Company, states “Shareholders can now see that completing the test work will
result, not only in the initial investment from ScanMag, but ultimately in the construction of commercialized full size
furnaces. Any reduction in our timeline will be invaluable and we may be in a position to move straight to a bankable feasibility
while conducting the prefeasibily study. So yes, we are very pleased that ScanMag remains committed to the completion of our joint
venture."
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.
This news release was reviewed by the president of Nevada Clean Magnesium, James Sever, P. Eng. a
qualified person recognized under NI 43-101.
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.
To Reach Nevada Clean Magnesium Please Contact:
Edward Lee, CEO at (604) 210-9862
Forward-Looking Statement
Statements in this news release that are not historical facts are forward-looking
statements that are subject to risks and 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 that MITC will pay certain costs; statements about NVM becoming a major U.S. producer and distributor of
primary, high grade, low cost magnesium metal, and that our Project has an inferred resource of 412 million tonnes.
ts will allow us to finalize our full sca
Actual results may differ materially from those currently anticipated due to a number
of factors, including that results may not be as we expect, including that MITC may not raise sufficient funds to carry out its
obligations; 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.
For additional information please visit our website at http://www.nevadacmi.com or view
our profile at http://www.sedar.com.
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