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MGX Minerals Inc
Symbol XMG
Shares Issued 140,385,960
Close 2019-08-20 C$ 0.19
Market Cap C$ 26,673,332
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MGX partner commissions oil sands treatment system

2019-08-21 07:10 ET - News Release

Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES CONTINUOUS OPERATIONS AT OILSANDS WASTEWATER TREATMENT PROJECT WITH ENGINEERING PARTNER PURLUCID

MGX Minerals Inc.'s engineering partner, PurLucid Treatment Solutions, has commissioned its first high salinity brine treatment system. The system was extensively tested in early 2019 at an independent research facility on an extensive array of waste waters from the heavy oil industry in Alberta and proved its treatment capabilities for three potential industry clients. Costs of $4.6-million were recouped from a combination of consortium partner contributions over the completion of milestone 2 of the three-milestone project.

The project has entered milestone 3 with the system subsequently installed and commissioned at a mid-sized producer location in Northern Alberta, a consortium partner where a commercial contract has already been negotiated for activation following performance acceptance during milestone 3. Commercial-scale continuous operations commenced July 25, 2019. Once milestone 3 is completed and the project transitions to the commercial contract, expected revenue is $1.8-million with an estimated net profit of $270,000 over a three-year contract. These figures are inclusive of equipment payback, which remains the property of PurLucid throughout the life of the contract and will be redeployed or contract renewed at no additional capital cost investment.

Additionally, PTS has completed its first high-pressure system and is in the process of moving it to the consortium partner site. A commercial contract has been signed with the consortium partner that, similar to the first unit, will generate revenue of approximately $2-million with an estimated net profit of $300,000 over a three-year contract once it transitions to commercial operations in early 2020.

Engineering for a third and larger system will be completed in fall 2019 for installation at a third consortium member site in early 2020. Under similar arrangements, it is expected to generate $3.2-million with an estimated net profit of $480,000 over a three-year contract upon successful completion of milestone 3 in the second quarter of 2020.

The success of the company's technologies during milestone 2 has opened business development channels and PTS is now pursuing a number of larger opportunities outside the heavy oil sectors in mining and geothermal water treatment.

About the project

The operational objective of the waste water treatment consortium project is to remove silica, dissolved ions and dissolved oil from heavy oil brines. The technology addresses industry needs in managing wastewater below 100 C and in treating hot produced water and blowdown above 100 C. At between 110 C and 180 C, such a system can replace or debottleneck current treatment systems and subsequent filters at an SAGD (steam-assisted gravity drainage) central processing facility (CPF), thereby reducing water treatment capital and operating costs, reducing GHG (greenhouse gas) emissions of water treatment and steam generation, and simplifying operations through solids management, elimination of heat exchangers and reduction of footprint, each of which represents significant problems for the heavy oil industry.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets.

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