TORONTO, June 28, 2018 /PRNewswire/ --
CellCube Energy Storage Systems Inc. ("CellCube" or the "Company") (CSE: CUBE) (OTC: CECBF) (Frankfurt: 01X) is pleased to announce the Company intends to spin out its 100% owned vanadium project,
Bisoni Mackay and Bisoni-Rio in Nevada, USA, into a newly formed subsidiary called Vanadium 23
Corp. ("Vanadium 23").
Vanadium prices have increased over 320% since January 2017 with V2O5 prices now approximately
US $17 per pound. Vanadium, widely used as an alloy to strengthen steel and in vanadium flow
batteries for the energy storage industry, is the best performing battery metal over this time period surpassing cobalt, copper
and nickel.
Upon completion of the spin out arrangement, the Company intends to issue one (1) share of Vanadium 23 for every two (2)
shares of CellCube held by CellCube shareholders of record. The Company intends to retain a 19.9% interest in Vanadium
23.
Transaction highlights:
- Vanadium 23 will be a publicly listed independent vanadium exploration and production company with advanced projects in
Nevada.
- Distribution of a share dividend to CellCube shareholders with CellCube retaining a 19.9% ownership as well as certain
off-take rights and a net smelter royalty.
- The formation of a new "pure play" vanadium company, Vanadium 23, that will fast track its drilling programs on the
vanadium projects to upgrade its Indicated and Inferred Resources. On completion of the planned drilling, a new NI 43-101
Technical Report will be commissioned to develop a new resource estimate. It is planned to follow this by commissioning a
Preliminary Economic Assessment.
- A National Instrument 43-101 Indicated Resource of 11.9 million tons at an average grade of 0.39 per cent vanadium
pentoxide (V2O5), and an Inferred Resource of 7.0 million tons at an average grade of 0.42 per cent V2O5 (see Company news
release Sept. 13, 2016). Only 12 per cent of the Bisoni McKay area has been drilled, and none of
the Bisoni-Rio which is contiguous with Bisoni McKay and sits between Bisoni and Prophecy's Gibellini vanadium deposit.
- Research currently conducted by the University of Calgary focussing on testing of the Bisoni
McKay vanadium and its use for production of vanadium electrolyte is ongoing. The University of
Calgary will be performing tests using a laboratory test battery that has been provided by Enerox GmbH.
The proposed spin-out transaction will be subject to shareholder approval.
Vanadium 23 will be highly focused on creating a portfolio of high quality vanadium assets on a global scale. Furthermore,
Vanadium 23 will already have supply agreements with its parent company, CellCube, a leading vanadium battery manufacturer, for
its vanadium requirements for their large vanadium flow batteries.
"The new CellCube management team quickly identified the opportunity to create a stand-alone vanadium company with size and
scale that will solely focus on developing its current vanadium properties into reserves, and ultimately, product for the battery
storage and technology industries," stated Mike Neylan, CEO of CellCube. "Specialized
purified vanadium has been one of the best performing commodities over the past two years and demand is only growing while supply
is quite restricted due to the requirement of obtaining high purity vanadium for end users."
"In addition, the intended spin out will allow CellCube and its management team to firmly focus on its energy storage
solutions while ensuring a vertically integrated supply chain of high purity vanadium," added Mr. Neylan.
Chris M. Healey, P. Geo, geological consultant to CellCube, is the independent Qualified Person
who has reviewed and approved the scientific and technical contents of this press release.
About CellCube ' s Vanadium A ssets :
CellCube's Bisoni McKay and Bisoni-Rio project is one of the largest pure play vanadium projects in North America totalling 4,115 acres contiguous to the Gibellini deposit held by Prophecy Development Corp.
Vanadium is most often found in association with other metals such as iron, lead or uranium that must first be removed before
vanadium recovery. Exploration and drilling to-date has indicated that Bisoni McKay's pure play vanadium resource does not
possess significant concentrations of any of these metals.
Only 12 per cent of the Bisoni McKay area has been drilled, and none of the Bisoni-Rio, which has already resulted in the
estimation of a National Instrument 43-101 Indicated Resource of 11.9 million tons at an average grade of 0.39 per cent vanadium
pentoxide (V2O5), and an Inferred Resource of 7.0 million tons at an average grade of 0.42 per cent V2O5 (see company news
release Sept. 13, 2016). The Indicated Resource is contained in a zone approximately 300 metres in
strike length, while the Inferred Resource covers approximately an additional 200 m of strike
length extending to the south. The mineralized zone appears to be open at depth and extends to the north into the Bisoni-Rio
property. In 2017, CellCube staked 162 claims on the Bisoni-Rio property from the Bisoni McKay right up to and abutting the
Gibellini vanadium property.
The vanadium belt of central Nevada is host to an important concentration of single product
vanadium deposits in North America. CellCube's Bisoni McKay property is a high-grade, pure play
vanadium project located in the vanadium belt of central Nevada. Past exploration drilling
reveals the occurrence of high-grade V2O5 (vanadium oxide) in the primary (carbonaceous shale) mineralized material which
contains the largest vanadium resource on the property. Several drill holes completed in primary mineralization suggest the
deposit is open at depth in some areas. A supergene enrichment zone of up to 35 feet in width has been identified immediately
below the redox zone.
Vanadium most commonly occurs in association with other metals forming complex mineral deposits such as titaniferous magnetite
and uranium-vanadium deposits where vanadium is mined as a co-product. This results in vanadium extraction being dependent on the
economic value of other commodities.
About CellCube:
CellCube's acquisition of the assets of Gildemeister Energy Storage GmbH has transformed CellCube and its wholly-owned
subsidiary, Enerox GmbH, into a leading integrated resource and energy storage company. Together with the company's recent
acquisitions of EnerCube Switchgear Systems Inc. (formerly Jet Power & Control Systems Ltd.) and PowerHaz Energy Mobile
Solutions (formerly HillCroft Inc.) and its investment in Braggawatt Energy Inc., CellCube is gearing up to deliver fully
vertically integrated energy storage solutions to utilities and independent power producers for both stand-alone energy storage
projects as well as projects where energy storage enhances the value proposition from renewable energy generation.
This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation.
Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments
that the Company expects to occur; they are generally, but not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions,
or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Forward-looking statements are based on
the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of
risks and uncertainties. Certain material assumptions regarding such forward-looking statements are discussed in this news
release and the Company's annual and quarterly management's discussion and analysis filed at http://www.sedar.com . Except as required by the securities disclosure laws and
regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if
management's beliefs, estimates or opinions, or other factors, should change.
Information regarding the Gibellini vanadium deposit has been obtained from publically available document s ,
however, this information has not been verified by the Company ' s Qualified Person and it is not necessarily
indicative of the mineralization of the Bisoni McKay Property.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts
responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Glenda Kelly
CellCube Energy Storage Systems Inc.
Telephone: +1-403-830-1436
Email: info@cellcubeenergystorage.com
http://www.stinaresources.com
coming soon:
http://www.cellcubeenergystorage.com