VanadiumCorp is on the board and back in the news again.
As we head into Christmas the big news of the year, especially the last few months would have to be vanadium. Soaring prices and demand particularly in China through new standards on construction has caused the vanadium price to rise about 3 fold in 2018, currently at US$27.50/lb (China spot).
VanadiumCorp Resource Inc. (TSXV: VRB) is back in the news and have announced, alongside Electrochem Technologies & Materials Inc., that Ultra Power Systems Pty Ltd. have signed a Patent Option Agreement (POA) to purchase an exclusive license, of the VanadiumCorp-Electrochem Processing Technology (VEPT). VEPT describes a novel chemical process that addresses the recovery of vanadium, iron, titanium, and silica feedstock’s.
Ultra Power Systems plans to utilize the Australian license of VanadiumCorp-Electrochem Processing Technology to expedite construction of the world’s first dedicated vanadium processing facility in Australia. Ultra’s 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 by-products. The resultant vanadium electrolyte has a minimal carbon footprint, is significantly cheaper, and offers an exceedingly lengthy usage life.
Adriaan Bakker, CEO of VanadiumCorp stated: “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 than anticipated.”
Francois Cardarelli, President of Electrochem Technologies & Materials Inc., continued: “This Patent Option Agreement is in line with our corporate strategy to monetize our patents that will require large-scale operations.”
This fully executed agreement was signed on November 23 by all parties involved and includes a 6 month option to acquire the exclusive license of VEPT for the jurisdiction of Australia. License terms exercisable in the POA 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 by-products for a project duration of 25 years.
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VanadiumCorp’s flagship Lac Dore’ project
VanadiumCorp intends to become the leading vanadium supplier to the emerging vanadium battery market for grid level and renewable energy storage. The Company’s 100% owned flagship Lac Dore’ project spans over 45 km2 and is located 35 km from the mining center of Chibougamau, Quebec, Canada. Mineralisation is accessible at surface and confirmed by the largest geophysical footprint in the region. VanadiumCorp’s current NI 43-101 vanadium resource measures 621 million lbs V2O5 from VTM concentrate grading 1.08% V2O5.
With a partnered patented processing technology and a good size/grade resource in a safe location, VanadiumCorp has so much potential in the vanadium space. The demand for vanadium with its steel hardening properties and use in redox flow batteries can only continue to grow.
VanadiumCorp is set to resume trading today, now that the cease trade order has been revoked. Given the spectacular rise of vanadium the past 6 months it will be interesting to see what the stock does once trading again.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>