Elcora and Gold Lion finalize agreement to begin exploitation of a Manganese Mining License in Morocco
September 21 2022 - 8:00AM
ELCORA ADVANCED MATERIALS CORP. (TSX.V:ERA | Frankfurt:ELM
| OTCQB – ECORF), (the "
Company" or
"
Elcora"), announced today that it has signed
a Mineral Option Agreement effective September 19, 2022 with Gold
Lion Resources Inc. (“
Gold Lion”), to start
exploitation on its Manganese mining research license in Morocco.
Upon execution of the Option Agreement, Gold
Lion has acquired a 25% interest in the Manganese License by making
a cash payment of $75,000 (including any amounts previously paid by
Gold Lion as a deposit) and by issuing an aggregate of 5,000,000
common shares of Gold Lion (each, a “Share”), at a
deemed price of $0.05 per Share, representing an aggregate value of
$250,000 for the Shares. The Shares were issued pursuant to
available prospectus exemptions and will be subject to a hold
period of four month and one day from the date of issuance pursuant
to applicable securities laws.
The Manganese research mining license in Morocco
(the “Property”) is held by Ermazon SARL
(“Ermazon”), a wholly owned subsidiary of Elcora.
Elcora will use the proceeds from the transaction to initiate the
ore production on the Manganese concession once the Exploitation
license has been granted.
Gold Lion has the option to: (1) acquire a
further 15% interest in the License (for a total interest of 40%)
by making a cash of payment of $125,000 within five business days
of receiving notice that Ermazon has secured the exploitation
license of the Manganese concession; and (2) acquire a further 10%
interest in the License (for a total interest of 50%) by making an
additional cash payment of $50,000 within 15 business days of
receiving notice of anticipated commencement of commercial
production on the License.
Pursuant to the Option Agreement, Ermazon will
operate and manage the mining of the ore from the License for a fee
equal to 20% of the pre-tax profits generated from such mining;
Ermazon will manage the processing and refining of the ore mined
from the License for a fee equal to 20% of the pre-tax profits
generated by such processing and refining; Ermazon and Gold Lion
will share the net profit from the License on an ownership pro rata
basis; and Ermazon and Gold Lion will share on an ownership pro
rata basis, the additional capital expenditures required to develop
the License and for processing and refining.
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.
Manganese 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.
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.
Europe's energy crisis will propel the demand
for (EV) electric vehicles that can serve as a back-up battery or
utility storage bank. Batteries are necessary to fast forward
electromobility, they store green energy, and can ensure that
critical European infrastructure runs smoothly.
Morocco’s proximity to Europe is a significant
benefit that will support the European battery manufacturing
infrastructure that is largely dependent on critical raw material
imports, notably Vanadium, Copper, Lead and Manganese.
Troy Grant, Elcora CEO commented “Elcora is
pleased to work 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 Manganese, Vanadium, Lead and Copper. We are
looking forward to begin Manganese production during Q4 2022.”
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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