TSX-V: "VRB"
VANCOUVER, May 29, 2019 /CNW/ - VanadiumCorp Resource Inc.
(TSX-V: "VRB") (the "Company") is pleased to announce that on
May 15, 2019, it entered into a
letter of intent (the "LOI") whereby a private Company may earn a
100% interest in the Company's Iron-T Vanadium-Titanium-Iron
Project through a three stage option ("The Option") with a Private
Company. Should the project reach production, a first right of
refusal is granted, allowing VanadiumCorp to acquire up to 200,000
metric tonnes per annum "Mtpa" of vanadiferous titanomagnetite
"VTM" concentrate as an offtake valid for up to 15 years.
Summary of Key Terms Contemplated by LOI
- An exclusive non-refundable $25k
CDN payment for 60 days of due diligence and
exclusivity
The LOI envisages a three stage earn-in by the Private Company
where it will have the right to:
- earn a 75% interest on completion of US$5 million of exploration expenditures and 1
million of cash and stock payments to VanadiumCorp within the
4th anniversary of signing of the JV Agreement ("First
Option");
- earn an additional 10% interest on completion of positive
preliminary economic assessment ("Second Earn-in"); and
- earn an additional 15% interest on completion of a positive
feasibility study ("Third Earn-in").
- The private company will become the operator and responsible
for ongoing costs related to the project. Property and will have
the right to accelerate the exercise of the earn-in by completing
all the exploration expenditures and any outstanding cash and stock
payments to VanadiumCorp in a period shorter than the earn-in
term.
VanadiumCorp Resource Inc. is an
integrated technology and mining Company focused on developing
the exclusive supply chain for vanadium based energy storage and
emerging technologies that utilize vanadium. VanadiumCorp is
focused on commercializing the most efficient and sustainable
recovery method to produce vanadium with jointly developed process
technology. VanadiumCorp also holds a significant
vanadium-titanium-iron bearing resource base in mining friendly
Quebec, Canada including the 100%
owned Lac Dore Project adjacent to Blackrock Metals Inc. and the
100% owned Iron-T Project near the Glencore Matagami (Zinc-Copper)
Mine.
Vanadium Redox Flow Batteries (VRFB, VRB) are
containerized, long duration, non-flammable, compact, reusable over
infinite cycles and last more than 20 years. Most batteries use two
chemicals that change valence (or charge or redox state) and cross
contaminate and thus degrade over time. VRBs utilize multiple
valence states of vanadium as a single element to store and
release charge. VRBs consists of two tanks of vanadium electrolyte
that flow adjacent to each other past a membrane and generate a
charge by moving electrons back and forth during charging and
discharging. This battery offers unlimited energy capacity simply
by using larger electrolyte storage tanks. It can be left
completely charged for long periods without losing power and
maintenance is much simpler than other batteries. The unique
advantage to separate power and energy also provides significant
advantages over competing technologies. With sustainably produced
VanadiumCorp ElectrolyteTM, the carbon footprint of the
VRB is remarkably low.
On behalf of the board of VanadiumCorp:
Adriaan Bakker
_____________________
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release. VanadiumCorp confirms this letter of
intent in an arm's length transaction.
SOURCE VanadiumCorp Resource Inc.