Mr. Adriaan Bakker reports
LOI SIGNED FOR ACQUISITION & SECURED OFFTAKE FOR VANADIUM CORP'S IRON-T VANADIUM -TITANIUM-IRON PROJECT
On May 15, 2019, Vanadiumcorp Resource Inc. entered into a letter of intent (LOI) whereby a private company may earn a 100-per-cent interest in Vanadiumcorp's Iron-T vanadium-titanium-iron project through a three-stage 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 $25,000 payment for 60 days of due diligence and exclusivity;
- Envisages a three-stage earn-in by the private company where it will have the right to:
Earn a 75-per-cent interest on completion of $5-million (U.S.) of exploration expenditures and $1-million of cash and stock payments to Vanadiumcorp within the fourth anniversary of signing of the joint venture agreement;
- Earn an additional 10-per-cent interest on completion of positive preliminary economic assessment;
- Earn an additional 15-per-cent interest on completion of a positive feasibility study;
- The private company will become the operator and responsible for continuing costs related to the project, and will have the right to accelerate the exercise of the earn-in by completing all of the exploration expenditures and any outstanding cash and stock payments to Vanadiumcorp in a period shorter than the earn-in term.
Vanadiumcorp confirms that this LOI is an arm's-length transaction.
Vanadium redox flow batteries (VRFB or 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 Electrolyte, the carbon footprint of the VRB is remarkably low.
About Vanadiumcorp Resource Inc.
Vanadiumcorp 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-per-cent-owned Lac Dore project adjacent to Blackrock Metals Inc. and the 100-per-cent owned Iron-T project near the Glencore Matagami (zinc-copper) mine.
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