VANCOUVER, BC / ACCESSWIRE / May 13, 2014 / Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (the "Company" or "Nevada Clean") today announced the formal signing of the Joint Venture (JV) Agreement with ScanMag AS, a Norway-based industrial minerals company. The JV partnership provides for the companies to collaborate on and mutually benefit from the development of their respective high quality dolomite deposits to produce magnesium metal for the North American and European industrial markets.
With the signing of the JV agreement, ScanMag AS has paid Nevada Clean initial cash consideration of US$150,000. Upon ScanMag remitting a total of US$5 million to the Company on or before October 14, 2014, ScanMag will be granted a 40% interest in Nevada Clean's Tami-Mosi Project and a 19% equity stake in the Company. Conversely, Nevada Clean will be granted a 7% equity stake in ScanMag.
"On behalf of everyone at ScanMag AS, I am delighted that we have achieved this major inflection in the continued development of our strategic partnership with Nevada Clean and look forward to capitalizing on their team's technical knowledge and proven industry experience to optimize our project development efforts in Norway," stated Lothar Maruhn, Chairman of ScanMag. Continuing, he added, "We are confident that we remain on track to secure the project financing required to advance our relationship with Nevada Clean to the next level, thereby affirming a working collaboration that will benefit both our companies for many years to come."
As previously announced, both Companies are actively engaged in greenfield projects involving the development of high quality deposits of dolomite, the key mineral used in the production of magnesium. ScanMag, which is jointly owned by Normin Mine AS and Mel?y Naeringsutvikling AS, is focused on developing its significant dolomite deposit located in the Granasen field not far from Glomfjord in Nordland County, Norway; and Nevada Clean is concentrating on developing its dolomite assets on its Tami-Mosi property in north central Nevada. Recognizing that their respective project development plans share a series of commonalities and defined production metholodologies, the Companies have determined that there is significant benefit to establishing a joint venture that will allow them to eliminate potential redundancies, identify and avoid potential pitfalls and share and capitalize on technical knowledge gained from the advancement of each project.
Edward Lee, Chairman and CEO of Nevada Clean, noted, "With a common goal of delivering high quality magnesium metal to the global markets through development of our respective dolomite projects, ScanMag and Nevada Clean's objectives are well aligned and the framework for a powerful partnership are now well defined. We are very pleased to be moving forward with ScanMag and expect that this is simply the beginning of what will prove to be a highly productive and profitable association."
The Joint Venture transaction with ScanMag remains subject to TSX Venture Exchange approval.
About ScanMag AS
ScanMag AS is an industrial minerals company headquartered in Glomfjord, a village in the municipality of Mel?y just north of the Arctic Circle on Norway's west coast. The Company was jointly formed by Normin Mine AS and Mel?y Naeringsutvikling AS in 2012 to develop a large deposit of high quality dolomite, situated in the Granasen field outside Mosj?en, near Glomfjord and is comprised of both dolomite and brucite. Mel?y Naeringsutvikling AS is jointly owned by the municipality of Mel?y in Nordland County; Yara Norway ASA, a subsidiary of one of the world's leading chemical company; Sparebank 1 Nord-Norge, a banking group that has served North Norway since 1836; and DNB Bank, Norway's largest financial services group. These Companies have teamed to capitalize on northern Norway's wealth of environmental resources to create new jobs, expand industrial infrastructure and promote global trade. www.mnu.no
About Nevada Clean Magnesium, Inc.
Nevada Clean Magnesium is focused on becoming a major U.S. producer and distributor of primary, high grade, low cost magnesium extracted from its 100% owned Tami-Mosi property located in North Central Nevada. Based on the Company's NI 43-101 Preliminary Economic Assessment Report published in late 2011, the Tami-Mosi Project has an inferred resource of 412 million tonnes with an average grade of 12.3% Mg for a contained metal content of 111 billion pounds of magnesium using a 12% cut-off grade contained within a high purity dolomite block. For more information, please visit www.nevadacmi.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements in this news release include statements about the closing a joint venture and private placement.
Actual results may differ materially from those currently anticipated due to a number of factors, including that we may not be able to agree on final terms with ScanMag, that ScanMag may not raise the necessary funds to invest, that the Company's dolomite reserves may not mined because of technical, regulatory, financing or other obstacles, the market price for magnesium may make our resources uneconomic, and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Kathy Addison, Chief Operating Officer
SOURCE: Nevada Clean Magnesium, Inc.