Subjects: TNM, CXP
Alliance Magnesium to buy Magnola
BROSSARD, QC, Dec. 5, 2017 /CNW Telbec/ - ALLIANCE MAGNESIUM INC. ("AMI") is pleased to announce that it has acquired all the shares of Magnola Metallurgy Inc. and Magnola Mining Inc. ("Magnola"). The transaction gives AMI full ownership of Magnola's industrial and mining sites in Danville, Quebec.
The site includes facilities and equipment from the former magnesium plant, whose value was recently estimated by an independent appraiser at more than CAD $85 million. The property also contains a valuable residue deposit estimated at more than 100 million tons of serpentine rock, the raw material that AMI will use in its production, which is made up of approximately 25% magnesium.
"It took five years of work, investment and achievement to reach this crucial and defining milestone in AMI's development," said Dr. Joël Fournier, Chief Executive Officer, AMI. "The transaction marks the company's clear intention to play a dominant role in global magnesium production, and confirms its position as one of the largest manufacturing projects in Canada," he added.
The acquisition of Magnola provides AMI with the infrastructure needed to deploy the construction and operation of a 50,000-tonne magnesium plant by 2021 and create more than 350 direct jobs.
After achieving a successful pilot plant, Alliance Magnesium is in technical and financial preparation for its commercial demonstration phase I which requires an investment of over CAD $100 million and will create 70 direct jobs.
AMI would like to thank all its financial and governmental partners, leaders and employees for their contribution to this extraordinary achievement. AMI also wishes to thank the elected officials and citizens of the MRC des Sources for their support and welcoming of this ambitious project from its beginning and which has now become a reality.
About Alliance Magnesium Inc.
Alliance Magnesium is a privately-owned Canadian company engaged in the production of magnesium metal and other valuable minerals from serpentine. AMI has developed an innovative technology and process that gives it a cleaner and less expensive approach than those currently used worldwide by magnesium producers. The new AMI process is an alternative to the thermal process, which is one of the most important sources of CO2 emissions in the world.
Additional information about AMI is available at:
SOURCE Alliance Magnesium Inc.
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