Ultra Power Systems Pty Ltd Signs Exclusive Patent Option Agreement to Purchase a License for the VanadiumCorp-Electrochem Processing Technology for Australia
Ultra Power Systems Pty Ltd Signs Exclusive
Patent Option Agreement to Purchase a
License for the VanadiumCorp-Electrochem
Processing Technology for Australia
VANCOUVER
,
Dec. 10, 2018
/CNW/ - VanadiumCorp Resource Inc. (TSX-V: "VRB") (the
"Company") and Electrochem Technologies & Materials Inc. ("Electrochem") have signed a Patent
Option Agreement ("POA") for Ultra Power Systems Pty Ltd ("Ultra") to purchase an exclusive
license. Ultra plans to utilize the Australian license of VanadiumCorp-Electrochem Processing
Technology ("VEPT") to expedite construction of the world's first dedicated vanadium processing
facility. 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 therefore has a minimal carbon footprint as well as being
significantly cheaper. Additionally, the electrolyte offers an exceedingly lengthy usage life (effectively
perpetual reuse), which provides an excellent basis for long-term leasing. This will provide end users
the option of avoiding a large portion of the initial capital outlay by distributing it over time through a
lease arrangement (with the electrolyte remaining an asset of Ultra).
Key aspects of the signed POA include the following terms with all financial considerations
split evenly between VRB and Electrochem:
Fully executed agreement signed by all parties
November 23, 2018
.
USD
$500,000
payment includes exercise of the option.
Non-reimbursable down payment received upon signing the Patent Option Agreement.
6 month option to acquire the exclusive license of VEPT for the jurisdiction of Australia
Territory.
Definitive 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
sulfate heptahydrate (copperas), titanium products and other by-products for a project duration
of 25 years.
Adriaan Bakker
, CEO of VanadiumCorp states, "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
then anticipated."
Francois Cardarelli
, President of Electrochem Technologies & Materials Inc. "This Patent Option
Agreement is in line with our corporate strategy to monetize our patents that will require large scale
operations. This important milestone regarding the VEPT will allow this disruptive and robust
technology to be implemented in
Australia
, a jurisdiction particularly favorable considering the large
deposits of vanadiferous titanomagnetite already in production or close to commercial production.
This milestone is turning point for licensing our joint IP with VanadiumCorp and Electrochem
preceding the national entry phases of VEPT for key global jurisdictions".
Brad Appleyard
, Managing Director of Ultra Power Systems Pty. Ltd. states, "We are excited to
commercialize VEPT exclusively in the mining friendly and vanadium rich jurisdiction of
Australia
. With
strong channel partners, investors and government support we intend to establish the leading
integrated solution for vanadium batteries worldwide. Stationary battery storage is the key to a
successful transformation of the energy industry into one based on renewable energy. Vanadium
Redox Flow Batteries are the cleanest and most effective such technology available today. The
central role played by the electrolyte in these batteries provides Ultra with an opportunity to play a
key role in the power industry well into the future".
Ultra Power Systems Pty Ltd.
is an Australian privately owned and financed company planning to
build a vanadium electrolyte production facility with VEPT in
Australia
to process abundant vanadium-
bearing resources and feedstocks for vertical integration into leasing vanadium batteries to mines
and remote communities, primarily in
Canada
and
Australia
. Ultra also intends to utilise its electrolyte
rights to participate in large scale renewable projects and to engage sub-licensees in strategic areas
of the globe.
VanadiumCorp Resource Inc.
plans to develop VEPT in
Canada
and co-license the VEPT for
targeted global jurisdictions to directly recover battery grade vanadium products, Vanadium
Electrolyte
TM
and coproducts such as iron and titanium from many sources irrespective of oxidation
and deleterious elements such as silica. Jointly developed and owned with Electrochem, this
innovative chemical process allows for integrated and low carbon footprint recovery of critical metals
needed on a global scale from vanadiferous titanomagnetite "VTM", magnetite, hematite and ilmenite
as well as steel slags, calcine and oil residues. VanadiumCorp also holds a significant vanadium-
titanium-iron bearing resource base in mining friendly
Quebec, Canada
.
Electrochem Technologies & Materials Inc.
is a private Canadian corporation that invents,
develops, patents, scales-up and commercializes proprietary chemical, metallurgical and
electrochemical technologies that are innovative, and sustainable. The company also manufactures
industrial electrodes, recycles rare earths from fluorescent lamps phosphors and produces tantalum
and tungsten fine chemicals at its production facilities in
Boucherville
. Electrochem currently owns
fourteen patents worldwide.
VEPT:
The jointly owned "VanadiumCorp-Electrochem" Process Technology ("VEPT") describes a
novel chemical process invented by Dr.
Francois Cardarelli
that addresses the recovery of
vanadium, iron, titanium, and silica feedstocks such as vanadiferous titano-magnetite, iron ores and
concentrates such as magnetite and hematite, vanadium containing wastes such as BOF-slags,
calcine and other industrial by-products also containing vanadium. Building a conventional primary
vanadium mine can take typically take 5-10 years with a large capital requirement and involve
significant technical risks, a large carbon footprint. For the small number of surviving producers,
vanadium is generally recovered at 1% from VTM concentrate as a single commodity that requires
costly purification and is cost and trade prohibitive to import from
China
,
South Africa
and
Brazil
. For
convenient access to the International PCT Patent Publication the PCT is available for direct
download using the following link.
https://goo.gl/N8pPfU
On behalf of the board of VanadiumCorp:
Adriaan Bakker
President and Chief Executive Officer
Disclosure notice:
Adriaan Bakker
and
John Hewlett
both own 250,000 shares of UPS representing
less then 1% of UPS.
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.
SOURCE
VanadiumCorp Resource Inc.
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%SEDAR: 00005245E
For further information:
Adriaan Bakker, President and CEO, VanadiumCorp Resource Inc., (TSX-
V: "VRB"), By phone: 1-604-385-4489, By email: [email protected], Website:
www.vanadiumcorp.com; Brad Appleyard, Managing Director, Ultra Power Systems PTY, By email:
[email protected], By phone: +618 6141 3395; Francois Cardarelli, President &
Owner, Electrochem Technologies & Materials Inc., Website: www.electrochem-technologies.com
CO: VanadiumCorp Resource Inc.
CNW 12:41e 10-DEC-18