Canadian Government Backs MGX Minerals' Petrolithium Cleantech
November 06 2017 - 9:40AM
InvestorsHub NewsWire
By
Stephan Bogner, Rockstone Research
Today, MGX Minerals Inc. announced that its
engineering partner PurLucid Treatment Solutions Inc. has been
awarded Federal and Provincial Government funding of up to $8.2
million CAD to support the commercialization of a low energy (i.e.
low cost) water treatment system for the oil and gas industry. This
investment not only represents a compelling vote of confidence from
highest level but also a major push forward for
petrolithium.
This
funding will allow MGX to bring its petrolithium technology to
market with the support of the Federal and Provincial Government in
a much faster and bigger way than anyone may have previously
imagined. Because the lithium extraction technology is all based on
the core water treatment technology, a large portion of the
benefit of the technology development will now directly benefit MGX
and advancing its petrolithium technology. The government and MGX
are now jointly funding the commercialization of cleantech and
petrolithium. That´s a jackpot for MGX going
forward.
The
governmental investments of up to $8.2 million CAD into MGX´s
partner not only provides high-level credibility with immediate
effect but also a non-repayable, non-dilutive and relatively large
cash injection representing more than 10% of MGX´s current
market capitalization of $78 million CAD. MGX owns 34% of PurLucid
and has the right to acquire 100%, but more importantly MGX
already owns the global rights to PurLucid´s mineral extraction
technology. As petrolithium is now being backed by the
government in partnership with MGX as matching funding partners,
the big winner is clearly MGX. As Dr. Preston McEachern, CEO and
Founder of PurLucid, explained today:
“Treatment of wastewater has always been a
challenge and significant cost to oil and gas producers; it is also
essential to implement petrolithium recovery. We’re grateful to
receive support from SDTC and ERA in the form of development
contributions, to build the first commercial system at an operating
oil production facility in Alberta and to demonstrate the large
cost and energy savings that can be achieved with these systems. It
is exciting, as this opens the door to further processing of the
treated water for petrolithium
recovery.”
Starting Shot for
Petrolithium
Considering last month´s landmark announcement
of solving the magnesium problem of the lithium industry
(see
here),
plus today´s governmental funding and backing, MGX is now perfectly
positioned/partnered to push its petrolithium technology to market
in Canada, and thereafter globally. What MGX has in hands is a low
OPEX (operating costs) and low CAPEX (capital costs) solution that
is revolutionizing the lithium industry because it proposes to
be much cheaper and much faster, up to 700 times as fast
as traditional solar evaporation.
People think solar evaporation is cheap and the
way to go into the future but actually it´s highly
capital intensive (because the evaporation ponds must
be very large) and highly inefficient on
operating costs (because of low recoveries of around 40%). Imagine
running the brine through an advanced filter in a single day versus
flooding a square mile of ponds and canals for up to 2 years just
to achieve the same purpose. Solar evaporation just doesn´t compare
in terms of efficiency and capital.
MGX
partnered and funded PurLucid to advance their cleantech water
handling and together they jointly developed MGX´s lithium and
mineral extraction technology based on the low energy
nanofiltration technology that PurLucid had been working on for
years. The paradigm shift is now running at full steam: Low energy
nanofiltration versus traditional filters that can´t handle oil and
high total dissolved solids or old technologies that use
expensive/inefficient evaporation (solar or mechanical methods to
remove minerals).
MGX´s
first commercial system (750 barrels per day) is nearing completion
and is scheduled to be deployed next month. A much larger plant
(7,500 barrel per day) is already in fabrication and will be
largely paid by the governmental grant. One of the main purposes of
the grant is commercialization of the
technology and bringing it into market with the
backing of Canada´s Federal and Alberta´s Provincial Government.
Today is the starting shot for petrolithium and MGX to become
ground-breakers. It´s now history in the making at full steam, with
the Canadian Government firing the gun. Watch it from the sidelines
or be part of it by owning a stake in what has all the
ingredients to be the solution for an entire
industry.
Company
Details
MGX
Minerals Inc.
#303 - 1080 Howe Street
Vancouver, BC, Canada V6C 2T1
Phone: +1 604 681 7735
Email: jared@mgxminerals.com
www.mgxminerals.com
Shares Issued & Outstanding:
77,609,651
Chart
Canadian Symbol (CSE):
XMG
Current Price: $1.01 CAD (11/03/2017)
Market Capitalization: $78 Million CAD
Chart
German Symbol / WKN
(Frankfurt):
1MG / A12E3P
Current Price: €0.65 EUR (11/03/2017)
Market Capitalization: €51 Million
EUR
Previous
Coverage
Report #26 “MGX Minerals Solves the Magnesium Problem
of the Lithium Industry“
Report #25 “Hard-Rock Lithium Exposure for
MGX“
Report #24 “One of the Largest Initial Oil Estimates
in US History“
Report #23 “MGX starts Petrolithium pilot plant to
deliver hard facts for strategic partners“
Report #22 “Time to bet: Sprott takes a position in
MGX“
Report #21 “Petrolithium: First Come First
Served“
Report #20 “Successful Independent Verification of
the MGX Lithium Extraction Technology“
Report #19 “MGX to Drill the World‘s First
PetroLithium Well in Utah“
Report #18 “MGX Reports Upgrading of Lithium Brine
from 67 to 1600 ppm Lithium“
Report #17 “MGX technology nominated for prestigious
Katerva Award, the Nobel Prize of
Sustainability“
Report #16 “Unconventional oil play legend Marc
Bruner to take MGX and PetroLithium to the next
level“
Report #15 “Total Conviction: MGX forms PetroLithium
Corp. to expand into the US oilfield brine
markets“
Report #14: “MGX Extracts Lithium from Oil Wastewater
- Begins Monumental Integration with Big
Oil“
Report #13 "MGX Partners with Oil Major on Lithium
Brine, New Energy Industry Facing Fundamental
Shift“
Report #12 "Game Changing Potential: MGX Minerals‘
Pilot Plant for Rapid Production of Lithium Nears
Completion“
Report #11 "MGX assays 34 g/t gold from surface
sampling in British Columbia“
Report #10 “Official: MGX owns magnesium worth
multi-billions of dollars and starts pilot plant
shortly“
Report #9 “One of the world‘s largest lithium
resources on the horizon?“
Report #8 “Ready for significant lithium brine work
in Alberta“
Report #7 “At the forefront of Alberta‘s lithium
brine riches“
Report #6 “Pioneering Lithium in Alberta: MGX
Minerals Teams Up“
Report #5 “Time to Put a Lithium Production Process
in Place“
Report #4 “MGX Minerals Taps Into Canada‘s
Potentially Largest High-Grade Lithium
Resources“
Report #3 “MGX Minerals Receives Mining Lease for 20
years (in British Columbia!)“
Report #2 “MGX Minerals Accelerates Towards
Production“
Report #1 “MGX Minerals Plans To Enter The Magnesium
Market“
Contact:
Stephan Bogner (Dipl. Kfm., FH)
Rockstone Research
8260 Stein am Rhein, Switzerland
Phone: +41-44-5862323
Email: info@rockstone-research.com
Web: www.rockstone-research.com
Disclaimer: Please read the full disclaimer
within the full research report as a PDF
(here)
as fundamental risks and conflicts of interest exist. The author
hold a long position in MGX Minerals Inc. and is being paid a
monthly retainer from Zimtu Capital Corp., which company also holds
a long position in MGX Minerals Inc.
Cautionary Statement: MGX may decide to advance
its petrolithium projects into production without first
establishing mineral resources supported by an independent
technical report or completing a feasibility study. A production
decision without the benefit of a technical report independently
establishing mineral resources or reserves and any feasibility
study demonstrating economic and technical viability creates
increased uncertainty and heightens economic and technical risks of
failure. Historically, such projects have a much higher risk of
economic or technical failure. All statements in this report, other
than statements of historical fact, should be considered
forward-looking statements. Much of this report is comprised of
statements of projection. These forward-looking statements are
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking information. Risks that
could change or prevent these statements from coming to fruition
include that aspects or all of the process development may not be
successful, the process may not be cost effective, MGX may not
raise sufficient funds to carry out its plans, changing costs for
processing; increased capital costs; interpretations based on
current data that may change with more detailed information;
potential process methods and mineral recoveries assumption based
on limited test work and by comparison to what are considered
analogous deposits may prove with further test work not to be
comparable; the availability of labour, equipment and markets for
the products produced; and despite the current expected viability
of the project, that the minerals cannot be economically processed,
or that the required permits to build and operate the
envisaged plant cannot be obtained. The writer assumes no
responsibility to update or revise such information to reflect new
events or circumstances, except as required by law. Nothing in this
report should be construed as a solicitation to buy or sell any
securities mentioned. Rockstone, its owners and the author of this
report are not registered broker-dealers or financial advisors.
Before investing in any securities, you should consult with your
financial advisor and a registered broker-dealer. Never make an
investment based solely on what you read in an online or printed
report, including Rockstone’s report, especially if the investment
involves a small, thinly-traded company that isn’t well known. The
author of this report is paid by Zimtu Capital Corp., a TSX Venture
Exchange listed investment company. Part of the author’s
responsibilities at Zimtu is to research and report on companies in
which Zimtu has an investment. So while the author of this report
is not paid directly by MGX Minerals Inc., the author’s employer
Zimtu will benefit from appreciation of MGX Minerals Inc.’s stock
price. In addition, the author owns shares of MGX Minerals Inc. and
would also benefit from volume and price appreciation of its
stock. MGX Minerals Inc. may have one or more common directors with
Zimtu Capital Corp. Thus, multiple conflicts of interests exist.
Therefore, the information provided herewithin should not be
construed as a financial analysis but rather as advertisement. The
author’s views and opinions regarding the companies featured in
reports are his own views and are based on information that he has
researched independently and has received, which the author
assumes to be reliable. Rockstone and the author of this report do
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Lastly, the author does not guarantee that any of the companies
mentioned will perform as expected, and any comparisons made to
other companies may not be valid or come into effect. Please read
the entire
Disclaimer carefully.
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