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Vanadiumcorp, Electrochem sign patent option agreement

2018-12-10 12:56 ET - News Release

Mr. Adriaan Bakker reports

ULTRA POWER SYSTEMS PTY LTD SIGNS EXCLUSIVE PATENT OPTION AGREEMENT TO PURCHASE A LICENSE FOR THE VANADIUMCORP-ELECTROCHEM PROCESSING TECHNOLOGY FOR AUSTRALIA

Vanadiumcorp Resource Inc. and Electrochem Technologies & Materials Inc. have signed a patent option agreement for Ultra Power Systems Pty. Ltd. to purchase an exclusive licence. Ultra Power Systems plans to utilize the Australian licence of Vanadiumcorp-Electrochem processing technology (VEPT) to expedite construction of the world's first dedicated vanadium processing facility. Ultra Power Systems' core objective is to directly integrate low-cost battery-grade vanadium electrolyte into vanadium redox batteries from virtually any source in a fraction of the time and capital requirements of current vanadium extraction processes. The VEPT dramatically reduces emissions associated with vanadium extraction as well as substantially offsetting the operating cost through the production of valuable byproducts.

Therefore, the resultant vanadium electrolyte has a minimal carbon footprint and is significantly cheaper. Additionally, the electrolyte offers an exceedingly lengthy usage life (effectively perpetual reuse), which provides an excellent basis for long-term leasing. This will provide end-users the option of avoiding a large portion of the initial capital outlay by distributing it over time through a lease arrangement (with the electrolyte remaining an asset of Ultra Power Systems).

Key aspects of the signed patent option agreement include the following terms, with all financial considerations split evenly between Vanadiumcorp Resource and Electrochem Technologies & Materials:

  • Fully executed agreement signed by all parties on Nov. 23, 2018;
  • $500,000 (U.S.) payment includes exercise of the option;
  • Non-reimbursable down payment received upon signing the patent option agreement;
  • Six-month option to acquire the exclusive licence of VEPT for the jurisdiction of Australia territory;
  • Definitive licence terms exercisable in the patent option agreement includes a minimum annual payment, financing fees and a gross royalty due upon production, applicable to all vanadium products, ferrous sulphate heptahydrate (copperas), titanium products and other byproducts for a project duration of 25 years.

Adriaan Bakker, chief executive officer of Vanadiumcorp Resource, commented: "This agreement represents a new chapter for Vanadiumcorp, with the benefit of cash flow and a realistic commercialization pathway for Vanadiumcorp and Electrochem's jointly developed green processing technology. Our vision to establish the most efficient and sustainable solution for energy storage is within reach years sooner then anticipated."

Francois Cardarelli, president of Electrochem Technologies & Materials, commented: "This patent option agreement is in line with our corporate strategy to monetize our patents that will require large-scale operations. This important milestone regarding the VEPT will allow this disruptive and robust technology to be implemented in Australia, a jurisdiction particularly favourable considering the large deposits of vanadiferous titanomagnetite already in production or close to commercial production. This milestone is a turning point for licensing our joint IP [intellectual property], with Vanadiumcorp and Electrochem preceding the national entry phases of VEPT for key global jurisdictions."

Brad Appleyard, managing director of Ultra Power Systems, commented: "We are excited to commercialize VEPT exclusively in the mining-friendly and vanadium-rich jurisdiction of Australia. With strong channel partners, investors and government support, we intend to establish the leading integrated solution for vanadium batteries worldwide. Stationary battery storage is the key to a successful transformation of the energy industry into one based on renewable energy. Vanadium redox flow batteries are the cleanest and most effective such technology available today. The central role played by the electrolyte in these batteries provides Ultra Power Systems with an opportunity to play a key role in the power industry well into the future."

About Ultra Power Systems Pty. Ltd.

Ultra Power Systems is an Australian, privately owned and financed company planning to build a vanadium electrolyte production facility with VEPT in Australia to process abundant vanadium-bearing resources and feedstocks for vertical integration into leasing vanadium batteries to mines and remote communities, primarily in Canada and Australia. Ultra Power Systems also intends to utilize its electrolyte rights to participate in large-scale renewable projects and to engage sublicensees in strategic areas of the globe.

About Vanadiumcorp Resource Inc.

Vanadiumcorp Resource plans to develop VEPT in Canada and co-license the VEPT for targeted global jurisdictions to directly recover battery-grade vanadium products, Vanadium Electrolyte and co-products, such as iron and titanium, from many sources irrespective of oxidation and deleterious elements, such as silica.

About Electrochem Technologies & Materials Inc.

Electrochem Technologies & Materials is a private Canadian corporation that invents, develops, patents, scales up and commercializes proprietary chemical, metallurgical and electrochemical technologies that are innovative and sustainable.

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