Nickel Extraction Technologies Development & Patent License Acquisition
December 3, 2013 (Source: Accesswire) — St-Georges Platinum and Base Metals Ltd. (CNSX: SX) (OTCQX: SXOOF) (BSE: 85G) is pleased to announce that it has entered into a term sheet agreement with Allied Nickel Corporation in order to acquire a perpetual and exclusive license for North America for Allied’s Patented Metal Extraction Technology for Nickeliferous Mineralisation. St-Georges and Allied also agree to jointly fund a new subsidiary of St-Georges in order to commercialize the Metallurgical Process and to develop new mineral extraction and processing technologies.
The main aim of the Agreement and the related research is to develop technologies that will enable a better extraction of metals from nickeliferous mineralised deposits through more cost-effective and environmentally-friendly processes. The patented process will be tested in the future with material coming from existing hard rock nickel deposits and from historical nickel-copper tailings in order to extract the PGM and base metals contained therein, and extract a significant amount of the sulphides left in the tailings from legacy mining operations. Sulphides in tailings tend to be leached by rain or surface water over time and eventually leak into the streams, rivers and lakes surrounding the historical mining operation tailings causing harm to the environment. We plan to test the ability of the newly acquired patented metal extraction processes to extract the majority of the sulphide and convert it into a marketable elemental sulphur or sulphuric acid, and at the same time eliminate the toxicity of the residues produced. One of the goals of the testing and development effort to be conducted over the next 3 years by a St-Georges’ subsidiary to be formed, will be to establish the feasibility and financial value of the process through metal extraction and the sale of sulphur or sulphuric acid. Additionally, it has potential capacity to neutralise the main environmental impact by returning to nature a benign tailing, unlike current nickel extraction processing used by the industry which return tailings loaded with sulphides that amount to time-delayed environmental disasters.
The acquisition agreement plans for St-Georges to issue to Allied Nickel Corporation, at the end of the independent due diligence period of 4 months, a 10-year convertible debenture in the amount of $500,000 CAD with a capitalised interest of 6% accrued on a quarterly basis. The debenture can be converted at a 10% discount of the weighted trading average price of the last 10 trading sessions and bears a minimum conversion price of $0.15. St-Georges will also issue 25% of the outstanding shares of its new subsidiary to Allied. St-Georges will also contribute half, or $250,000, of the research and development budget of the first year of operation of the subsidiary that is planned to be $500,000 and Allied’s contribution will be of an additional $250,000. For the second and third years, St-Georges will contribute for $750,000 each year to the subsidiary budget while Allied contribution will be $250,000 for each year. St-Georges ownership of the subsidiary that will be the owner of the intellectual property could be diluted down from 75% to 50.1% by Allied through additional injection of capital, investment or the reach of certain milestones to be negotiated in the final contract between the two parties.
“The licensing of Allied’s intellectual property will add to the business model of St-Georges (…) it moves a large portion of the focus of the Company from mineral exploration to the development, licensing and exploitation of mineral extraction and metallurgical processes. It is the first deliverable of many years of searches for a metallurgical technology pipeline enabling us to develop and potentially market our process in the future (…)” said Frank Dumas, Chairman and director of the Company. “This acquisition represents the first milestone in reproducing a business model that sets us apart from other exploration juniors and bring us in the same path as other Companies that we helped establish in the past(…)” said Mark Billings, director of the Corporation.
All securities issuance are subject to CNSX and regulatory approval. The Agreement is subject to regulatory approval, including that of the CNSX Exchange, and to various closing conditions, including the signing of definitive contracts.
ON BEHALF OF THE BOARD OF DIRECTORS
Mark Billings, Director
St-Georges is a Platinum-Palladium & Nickel explorer with projects in the Province of Quebec, Canada. Headquartered in Montreal, the Company’s stock is listed on the CNSX under the symbol SX, on the OTCQX under the Symbol SXOOF and on the Berlin Stock Exchange under the symbol 85G. Its Flagship projects are the Julie and Isoukustouc projects on Quebec’s North Shore near the deep-seaport town of Baie-Comeau. For additional information, please visit our website at www.stgeorgesplatinum.com.
This document contains certain forward-looking statements which involve known and unknown risks, delays, and uncertainties not under the corporation’s control which may cause actual results, performance or achievements of the corporation to be materially different from the results, performance or expectation implied by these forward-looking statements.
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