MGX Minerals and Eureka Resources
Enter
Joint
Venture
Agreement
to
Install
World's
First
Commercial
Rapid Petrolithium
Recovery System
in Pennsylvania
VANCOUVER, BRITISH COLUMBIA, Canada -- June
10,
2019
-- InvestorsHub NewsWire -- MGX
Minerals Inc. ("MGX" or the
"Company") (CSE:
XMG /
FKT: 1MG /
OTCQB: MGXMF)
and
Eureka Resources, LLC ("Eureka")
are
pleased to announce signing of a definitive
Joint
Venture Agreement
("JV" or the
"Agreement") which
outlines a new
strategic
partnership.
Initial System Installation
The
newly
formed JV
will initially
focus on fast
tracking deployment
of the
world's first
commercial rapid lithium recovery system at
Eureka's state-of-the-art
Standing Stone
advanced
wastewater
Treatment
Facility
("Standing
Stone") near
Towanda, Pennsylvania.
The JV is working to commission the system in
Q3
2019.
Eureka's
Standing
Stone facility,
which originally
opened in 2013,
provides
regional energy
producers with advanced
wastewater treatment services
for raw oil and gas
brines.
Post-concentration
lithium values in the range of 1,000ppm have
been reported by Eureka and
verified by MGX from produced
water from
within the
Marcellus Shale.
Figure 1. Eureka Resources Standing Stone Wastewater Treatment
Facility
Additional System Deployments
In
addition to the
initial
system
installation
at
Standing Stone, the JV
has
also
outlined
a growth
strategy that focuses
on growing lithium
output and deploying additional rapid recovery systems
throughout the
Marcellus and Utica shale formations. This includes
scaling up lithium
output at Standing
Stone,
deploying
additional
systems
to
other Eureka
facilities, and
identifying
new
installation sites
at
third-party
treatment facilities. Eureka shall
retain exclusive rights to develop all JV
relationships with
third-party facilities within the
Marcellus and Utica shall formations for an initial period of five
years. Both Parties
will have mutual discretion to further extend the JV for up to four
additional years thereafter.
Joint Venture Details
Terms of the
JV provide
that
MGX
will initially receive a disproportionate share of gross revenue
proceeds until its petrolithium unit capital costs are
recovered. Eureka
will
obtain and
manage all
necessary
environmental
permits
related
to each
system
installation
as
well as day-to-day
operational
duties.
MGX
will
fabricate and
install each
system, market the
petrolithium, and
provide
ongoing system
maintenance.
Petrolithium
MGX
has developed a rapid lithium extraction technology that eliminates
or greatly reduces the physical footprint and investment needed for
large, multi-phase, lake-sized, lined evaporation ponds.
The
technology enhances the
quality of lithium extraction and recovery across a complex range
of brines as compared with traditional solar evaporation
and
is
applicable to oil and gas
produced water, natural brine, lithium-rich mine brine and
industrial plant wastewater. MGX's
petrolithium technology was
recognized with a Base & Specialty Metals Industry Leadership
Award at the 2018 Platts Global Metals Awards.
MGX may
utilize
its petrolithium
technology for lithium
and other valued products
production without first establishing mineral
reserves
supported by an independent technical report or completing a
feasibility study. A production decision without the benefit of a
technical report independently establishing mineral resources or
reserves and any feasibility study demonstrating economic and
technical viability creates increased uncertainty and heightens
economic and technical risks of failure. Historically, such
projects have a much higher risk of economic or technical
failure.
About Eureka Resources
Eureka
Resources provides industry-leading
advanced
treatment technology
in
oil
and gas produced
water
management.
Since 2008,
Eureka's patented
and permitted
services have expanded to meet the growing need for
produced
water
solutions and critical
mineral production. Eureka's
three conveniently located facilities provide
regional environmental and economic
solutions to oil and gas
producers and the
community. Learn more at
www.eureka-resouces.com.
About MGX Minerals
MGX
Minerals is a diversified Canadian resource and technology company
with interests in global advanced material, energy and water
assets. Learn more at
www.mgxminerals.com.
Contact Information
MGX Minerals
Jared
Lazerson
President and
CEO
Telephone:
1.604.681.7735
Web:
www.mgxminerals.com
Eureka Resources
Daniel
Ertel
President and
CEO
Telephone:
1.570.651.9972
Web:
www.eureka-resources.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements (collectively "forward-looking
information") within the meaning of applicable securities laws.
Forward-looking information is typically identified by words such
as: "believe", "expect", "anticipate", "intend", "estimate",
"potentially" and similar expressions, or are those, which, by
their nature, refer to future events. The Company cautions
investors that any forward-looking information provided by the
Company is not a guarantee of future results or performance, and
that actual results may differ materially from those in
forward-looking information as a result of various factors. The
reader is referred to the Company's public filings for a more
complete discussion of such risk factors and their potential
effects which may be accessed through the Company's profile on
SEDAR at
www.sedar.com.