VANCOUVER, Oct. 30, 2019 /CNW/ - VanadiumCorp Resource Inc.
(TSX-V: "VRB") (the "Company") is pleased to announce that on
October 18th , 2019, it entered into
a Definitive Agreement whereby a private Canadian corporation
("Private Company") may earn a 100% interest in the Company's
Iron-T Vanadium-Titanium-Iron Project through a three-stage option
("The Option"). 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 life of
mine.
"This agreement offers the potential of exclusive vanadium
feedstock required for a VanadiumCorp processing facility to enable
a new vanadium redox flow battery ("VRFB") industry in Quebec, Canada. VRFBs with VanadiumCorp
ElectrolyteTM offer the lowest carbon footprint. VRFBs
are uniquely suited to replace diesel for remote communities, build
clean electric vehicle charging infrastructure, backup power to
prevent blackouts and enabling microgrids crucial for national
security and modernizing the entire power grid with renewable
infrastructure." Stated, Adriaan
Bakker, Chief Executive Officer of VanadiumCorp.
The Definite Agreement contains a three-stage earn-in, where the
Private Company 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 the signing of the
Definitive Agreement ("First Option").
- Earn an additional 10% interest on completion of preliminary
economic assessment ("Second Earn-in"); and
- Earn an additional 15% interest on completion of a positive
feasibility study ("Third Earn-in").
Private Company will become the operator and responsible for
ongoing costs related to the project, 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.
Should the project reach production, Private Company will grant
VanadiumCorp a right of first refusal ("Offtake ROFR") to acquire
(i) 100 000 MTPA of the VTM concentrate at cost price and (ii) 100
000 MTPA of a VTM concentrate market price, being agreed that the
total concentrate 200,000 MTPA in aggregate) allotted to
VanadiumCorp cannot exceed a maximum of ten percent of total VTM
concentrate tonnage established.
The development of a mining operation typically involves large
capital expenditures and a high degree of risk and uncertainty. To
reduce this risk and uncertainty, typically a production decision
is based on a comprehensive feasibility study of established
mineral reserves. The Iron-T project is a development stage project
and no feasibility study of mineral reserves exist demonstrating
economic and technical viability. As such, there is increased
uncertainty and the specific economic and technical risks of
failure associated with this production decision.
VanadiumCorp Resource Inc. is an integrated company
developing an exclusive supply chain for next generation vanadium
redox flow batteries. The Company has jointly developed process
technology that mitigates the cost and carbon footprint of vanadium
which is successfully tested on many global feedstocks. The
Company's vanadium rich titanomagnetite resource base is located in
mining friendly Quebec, Canada
and the first VRFB facility will be located in Karlsruhe,
Germany.
VRFBs 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. VRFBs utilize multiple valence states of vanadium as a
single element to store and release charge. VRFBs 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 VRFB 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 agreement
is an arm's length transaction and there are no common directors or
officers between the Companies.
SOURCE VanadiumCorp Resource Inc.