New Strategic Partner - Marubeni Joins Alliance Magnesium
DANVILLE, QC, Dec. 13, 2019 /CNW Telbec/ - ALLIANCE MAGNESIUM INC ("AMI"), a Canadian company whose activities consist in the production of primary magnesium from serpentine mine tailings, and secondary magnesium to make value-added products, is pleased to announce the arrival in its share capital of the Japanese company Marubeni.
The investment of this international company will be in the form of common shares for C $ 16.7 million and will be dedicated to the financing of the commercial production demonstration phase (phase 1), an investment of more than 100 M $ whose construction will begin in 2020. This first phase will be followed by a 50,000 ton commercialization plant, whose construction is planned for 2022.
In addition to the investment, Marubeni will contribute to the development of AMI's business through a presence on its Board of Directors and the participation in various technical and corporate committees. Thus, AMI will be able to add to the expertise of its directors and administrators, the extensive experience of Marubeni in the deployment of large-scale operations and particularly in companies in the light metals and critical materials sector. The two companies share common visions in many respects, including responsible investment, the circular economy, social acceptability and the valorization of tailings. They also adhere to the rigorous principles of ESG (Environment, Safety and Governance), which enables them to share common goals and share best practices.
"We are honored to have Marubeni join our major industrial project.", said Michel G. Gagnon, Chairman of the Board of Directors and Chief Executive Officer of AMI. "Its presence, beyond the amount of money invested, will enable AMI to strengthen its position as a magnesium producer of international stature. In addition, this investment is very much in line with the further development of the light metals industry in Quebec", added Mr. Gagnon.
"AMI will produce the world's most responsible magnesium, which will bring a significant contribution to the reduction of GHGs attributable in particular to the transportation industries.", commented Dr. Joel Fournier, President and Chief Technology Officer of AMI. "Marubeni's strategic contribution will go a long way towards achieving this goal.", added Dr. Fournier.
About magnesium
Magnesium is one of the materials whose demand has increased significantly in order to reduce the weight of vehicles. It is the lightest of all commonly used materials such as aluminum and steel and very famous for the high vibration damping capacity, high strength / weight ratio and high stiffness / weight ratio. Its demand is growing strongly, mainly in the transportation sector. Magnesium is also used in aluminum alloys and is considered one of the most important critical materials both in Europe and the United States. Magnesium fits very well into the Government of Quebec's strategy for the electrification of transportation.
About Marubeni
Marubeni is one of the largest companies in the world in terms of annual sales (more than $ 70 billion in 2018) and is dedicated to product handling and the supply of goods and services around the world. Marubeni's activities are widely diversified not only for the conventional trade of various products such as foodstuffs, textiles, chemicals, industrial machinery, transport, metals and natural resources, but also for the investment in various commodities areas such as infrastructures, energy and natural resources. Its global presence includes 131 branches and offices in 66 countries and regions. Marubeni has been active in Quebec for over 30 years and is a partner in the Alouette aluminum smelter.
About Alliance Magnesium
AMI is a privately held Canadian company engaged in the production of metallic magnesium and other valuable minerals from serpentine. AMI has developed an innovative technology and process that gives it a cleaner and less expensive approach than those currently used in the world by magnesium producers. The magnesium produced by AMI comes from the recovery of a mining residue, transformed by a clean electrolysis process and sold on the transport markets to lighten the weight of vehicles and reduce their environmental footprint. AMI has developed a three-step development program that will lead to an annual production of 50,000 tons in 2024 and the creation of over 300 jobs.
AMI operates in compliance with health, safety and environment standards. It holds the certificates of authorization issued by the Ministry of the Environment and the Fight against Climate Change for the conduct of its operations.
Alliance Magnesium Inc.
CONTACT: Pierre Saint-Aubin, VP, Corporative Affairs, 514 946-9593, psaintaubin@alliancemagnesium.com
Web Site: alliancemagnesium.com
