Elcora options to join forces with Gold Lion to begin exploitation of a Manganese Mining License in Morocco
August 18 2022 - 8:00AM
ELCORA ADVANCED MATERIALS CORP. (TSX.V:ERA | Frankfurt:ELM
| OTCQB – ECORF), (the "
Company" or
"
Elcora"), announced today that it has signed
an LOI with Gold Lion Resources Inc. (“
Gold
Lion”), to start exploitation on its Manganese mining
license in Morocco.
The Manganese research mining license in Morocco
(the “Property”) is held by Ermazon SARL
(“Ermazon”), a wholly owned subsidiary of Elcora.
Gold Lion will acquire 50% interest in the Property and Elcora will
use the proceeds from the transaction to initiate the ore
production on the Manganese concession once the Exploitation
license has been granted. Profits from the production will be
shared accordingly.
The Manganese site is a former French mine that
was in operation for decades, therefore Elcora will leverage
on-site infrastructure, facilities and up to 600 tonnes of raw ore
ready for processing. Furthermore, this development and exploration
project will determine whether an open pit or underground mining
operation will be used in the future.
Ermazon has applied for the exploitation license
of the Manganese concession which will strengthen its ongoing
strategy to supply battery and electric vehicles (EV)
end-users.
Manganese is used, among other things, to
produce batteries for EVs and other renewable energy applications
such as electricity grid storage batteries. Its status as a battery
metal is expected to propel its demand in the wake of what experts
predict will be a widespread transition to EVs driven by lofty
climate policy goals and zero-emission targets.
This metal represents a critical link in the
Lithium-ion battery supply chain. Electrolytic Manganese Dioxide
(EMD) is an upgraded form of Manganese that serves as a key
ingredient of Lithium-ion, Alkaline and Zinc-Manganese
batteries.
The Manganese battery supply chain will
experience the strongest growth through 2030, with the market
increasing in size by a factor of 9. Manganese sulfate spot prices*
in July and August 2022 have hovered between approximately $900 USD
and $1,050 USD per tonne and are expected to continue to reinforce
over the next decade. “Prices are likely to keep rising in the
second half of the year as demand for batteries is projected to
grow. With the Manganese sulfate market currently projected to be
in a deficit, prices are likely to rise to support new refinery
projects in order to meet demand by 2024.” (Bloomberg NEF).
“Market Reports World” has been monitoring the
global Manganese mining market and it is poised to grow by 5,385.13
k tons during 2020-2024, progressing at a CAGR of 5% during the
forecast period.
Terms of the transaction
For 50% interest in the Property, Gold Lion will
pay the following consideration in tranches to Elcora: (i) a cash
payment of $75,000 and the issuance of common shares of Gold Lion
(the “Shares”) equal to $250,000 for 25% interest
in the Property; (ii) a cash payment of $125,000 for 15% interest
in the Property; and (iii) a cash payment of $50,000 for 10%
interest in the Property.
The Shares will be subject to a minimum hold
period of four months and one day from the date of issuance.
The transaction is subject to customary closing
conditions, including the signing of a definitive agreement and
final acceptance from the applicable regulatory authorities.
Troy Grant, Elcora CEO commented, “Elcora is
pleased to join forces with Gold Lion to develop the Manganese
site. Manganese is a critical metal used in the EV battery industry
and is an important piece of our strategy to supply the increasing
global demand for both Manganese and Vanadium. We look forward to
updating investors on our achievements and execution of our
strategy to become a significant battery metals supplier.”
* Manganese Sulfate( Battery Level) today | Minor Metals | SMM -
China Metal Market
About Elcora Advanced Materials Corp.
Elcora was founded in 2011 and has been
structured to become a vertically integrated battery material
company. Elcora can process, refine, and produce battery related
minerals and metals. As part of the vertical integration strategy
Elcora has developed a cost-effective process to purify
high-quality battery metals and minerals that are commercially
scalable. This combination means that Elcora has the tools and
resources for vertical integration of the battery minerals and
metals industry.
For further information please visit the
company's website at:
http://www.elcoracorp.com
For further information please contact: Troy
Grant, Director, President & CEO, Elcora Advanced Materials
Corp., T: +1 902 802-8847
CAUTIONARY STATEMENT:
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.
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. No stock Exchange, securities commission or other
regulatory authority has approved or disapproved the information
contained herein.
This News Release includes certain
“forward-looking statements”. All statements other than statements
of historical fact, included in this release, including, without
limitation, statements regarding potential mineralization and
reserves, exploration results, and future plans and objectives of
Elcora, are forward-looking statements that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from Elcora’s expectations are exploration risks
detailed herein and from time to time in the filings made by Elcora
with securities regulators.
Investors are cautioned that, except as
disclosed in the filing statement prepared in connection with the
transaction, any information released or received with respect to
the transaction may not be accurate or complete and should not be
relied upon.
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