Nevada Clean Magnesium Formalizes Process License and Royalties Agreement
VANCOUVER, BRITISH COLUMBIA / TNW-ACCESSWIRE / January 13, 2015 - Nevada Clean Magnesium Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (the "Company" or "Nevada Clean") announces today that it has signed a License and Royalty Agreement with its director, James Sever, P. Eng., to use Mr. Sever's unique knowledge and concepts on the Company's Tami Mosi and other properties for the commercial production of magnesium.
Mr. Sever has developed concepts regarding the design and use of a condenser that will enable the commercial production of magnesium by direct reduction of carbon. He has also developed and continues to develop other technologies, potential applications and development strategies for the commercial production and use of magnesium. Under the License and Royalty Agreement, the Company gets use of these concepts and know-how to develop its properties. Mr. Sever will also provide technical assistance to the Company with regard to the process and any changes or refinements to the process at the request of the Company, for a fee to be agreed. In addition, the Company can sub-license the knowledge and concepts to third parties, provided the third parties pay royalties to Mr. Sever.
In consideration for the license, the Company will pay to Mr. Sever a royalty in the amount of three tenths of one cent (USD$0.003) per pound (USD$0.00661 per kilogram) of magnesium produced and sold by the Company where the condenser concept has been utilized and fifteen one hundreds of one cent (USD$0.0015) per pound of magnesium produced and sold from its properties without using the condenser concept. The initial term of the agreement ends on December 31, 2040, and is renewable.
States Edward Lee, CEO of Nevada Clean, "James Sever is known to be one of the world's foremost experts on production techniques for magnesium, and we are delighted to know that his unique knowledge and concepts will help us when we have positioned ourselves to start buiding production facilities. Having Jim on board as a director and now as a guaranteed supplier of state of the art know-how gives us credibility in the marketplace we could not have earned without him. This license also puts Nevada Clean in the position where it can help develop other magnesium deposits world-wide, and earn an interest for our know-how, like the arrangement we announced with ScanMag A.G. of Norway."
The License and Royalty Agreement is being filed by the Company on SEDAR.
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 extracted from its 100% owned Tami-Mosi property located in North Central Nevada. Based on the Company's 43-101 technical report published in late 2011 and amended effective July 4, 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 James Sever, P. Eng. a qualified person recognized under NI 43-101.
Neither the 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 Statements
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities laws. Forward-looking information in this press release include that we can become a major US producer of high grade, low cost magnesium; and that we have the quantities and grade of magnesium indicated in our technical report. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. These risks include unfavorable market pricing for commodities, failure to keep our properties, failure to raise funds to carry out development and mining, permitting issues, and many other risks associated with mineral exploration and development companies. Despite encouraging results, there may not be an economic resource on our properties. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. More detailed information about our risk factors are filed by the Company with the Canadian securities regulatory authorities on SEDAR.
CONTACT INFORMATION:
ED LEE, CEO
(604) 210-9862
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