LOI Signed for Acquisition & Secured Offtake for Vanadium Corp's Iron-T Vanadium - Titanium-Iron Project
LOI Signed for Acquisition & Secured Offtake
for Vanadium Corp's Iron-T Vanadium -
Titanium-Iron Project
TSX-V: "VRB"
VANCOUVER
,
May 29, 2019
/CNW/ - VanadiumCorp Resource Inc. (TSX-V: "VRB") (the
"Company") is pleased to announce that on
May 15, 2019
, it entered into a letter of intent (the
"LOI") whereby a private Company may earn a 100% interest in the Company's Iron-T Vanadium-
Titanium-Iron Project through a three stage option ("The 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
$25k CDN
payment for 60 days of due diligence and exclusivity
The LOI envisages a three stage earn-in by the Private Company where it will have the right to
:
earn a 75% interest on completion of
US$5 million
of exploration expenditures and 1 million of
cash and stock payments to VanadiumCorp within the 4th anniversary of signing of the JV
Agreement ("First Option");
earn an additional 10% interest on completion of positive preliminary economic assessment
("Second Earn-in"); and
earn an additional 15% interest on completion of a positive feasibility study ("Third Earn-in").
The private company will become the operator and responsible for ongoing costs related to the
project. Property and will have the right to accelerate the exercise of the earn-in by completing
all the exploration expenditures and any outstanding cash and stock payments to VanadiumCorp
in a period shorter than the earn-in term.
VanadiumCorp Resource Inc.
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% owned Lac Dore Project adjacent to Blackrock Metals Inc. and the
100% owned Iron-T Project near the Glencore Matagami (Zinc-Copper) Mine.
Vanadium Redox Flow Batteries (VRFB, 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
TM
, the carbon footprint of the VRB is remarkably low.
On behalf of the board of VanadiumCorp:
Adriaan Bakker
_____________________
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release. VanadiumCorp confirms this letter of intent in an arm's length transaction.
SOURCE
VanadiumCorp Resource Inc.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/May2019/29/c2254.html
%SEDAR: 00005245E
For further information:
Adriaan Bakker, President and CEO, VanadiumCorp Resource Inc. (TSX-
V: "VRB"), By phone: 604-385-4489, By email: [email protected], Website:
www.vanadiumcorp.com
CO: VanadiumCorp Resource Inc.
CNW 17:20e 29-MAY-19