VANCOUVER, BRITISH COLUMBIA - (AccessWire) - December 10, 2013 - Edward Lee, Chairman and CEO of Nevada Clean Magnesium, Inc. (TSXV: NVM; Frankfurt-M1V; OTC Pink Sheets: MLYFF) (the "Company") today commented on the Company's management team's recent due diligence trip to Norway to meet with officials from ScanMag AS, the Norway-based industrial minerals company that has signed a Binding Letter of Agreement to form a new joint venture ("JV") with the Company. The expected JV, providing for both companies to collaborate on and mutually benefit from the development of their respective domomite deposits to produce magnesium metal for the North American and European industrial markets, is expected to be finalized in early 2014, subject to ScanMag closing on an expected $30 million project financing and the approval of the TSX Venture Exchange.
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Both Nevada Clean and ScanMag are actively engaged in 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 100%-owned dolomite assets on its Tami-Mosi property in north central Nevada.
Lee, who was accompanied on the trip by James Sever, President of Nevada Clean, stated, "Jim and I found our trip to the Glomfjord site to be both enlightening and reassuring. Upon our arrival, we were graciously accepted and a lot of trust was developed during the week between both parties. It is now abundantly clear to us that the synergy between our Company and ScanMag is ideal and our respective strengths and technical expertise are highly complementary. Together, we expect to make a formiddable team when it comes to helping to meet the prevailing global demand for high grade, low cost magnesium metal."
Continuing, Lee noted, "While we were in Norway, we had the opportunity to tour and evaluate the site where we'll be helping ScanMag to build out their dolomite processing facilities. The building in which the reduction operations will be constructed is well suited for this purpose and has essential infrastructure already in place, making installation and advancement to commercial operations a much less complex proposition than a typical greenfield site. More specifically, the plant site has been in use as a heavy industrial production facility dating back to 1918; there is a skilled workforce in place; and supporting service industries are also already in place and stand ready to serve."
"During our stay, we also had the opportunity to meet with both suppliers and potential customers. High quality ferrosilicon is already being produced nearby and the quantities needed to support ScanMag's operations will readily fit into the production capabilities of the producer. A dolime producer is also in operation near in the site, and they have agreed to supply sufficient dolime to allow commencement of the magnesium production operations even before the kiln and quarry are installed. This will allow all efforts to be concentrated on starting the main reduction operation and provide for quick resolution to any startup issues that may confront us. Moreover, since the magnesium facility will be located near two producing aluminum smelters, maintaining low cost of delivery to these customers can be readily achieved. It will also allow for close collaboration with these customers, resulting in strong working relationships that will support ScanMag's ability to produce cost effective magnesium alloy units cleanly, quickly and efficiently. The trip was very successful, especially demonstrated by the warm reception we received during our joint press statements by their media".
For your convenience, please see links below regarding news releases from joint press statements released in Norway. We have included translations of the original Norwegian articles into English using the Google Translate(TM) translation service.
Please click on the links below to view the English translations.
Please click the links below to view the original articles.
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. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements in this news release include statements about the entering into a joint venture, the closing of a private placement, that we can create significant value for our shareholders, and that Nevada Clean Magnesium can become a major magnesium producer and supplier.
Actual results may differ materially from those currently anticipated due to a number of factors, including those beyond the Company's control. These risks and uncertainties include, among other things, that we may not be able to agree on final terms with ScanMag, that we may not be able to obtain regulatory approval, that we may not be able to raise funds required, that conditions to closing may not be fulfilled, 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.
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