- Â Announced that it has signed a binding letter of intent with Strategic Metallurgy Pty Ltd. of Australia and its president Mr. Gary Johnson
- Â Letter of intent creates a partnership between St-Georges and Strategic Metallurgy in the development and commercialization of new mining extraction technologies aimed to result in cleaner and more environmentally friendly extraction processing technology
Montreal, Quebec / November 26, 2015 – St-Georges Platinum and Base Metals Ltd. (OTC: SXOOF) (CSE: SX) (FSE: 85G1) is pleased to announce that it has signed a binding letter of intent with Strategic Metallurgy Pty Ltd. of Australia and its president Mr. Gary Johnson.
The letter of intent executed this week creates a partnership between St-Georges and Strategic Metallurgy in the development and commercialization of new mining extraction technologies aimed to result in cleaner and more environmentally friendly extraction processing technology and significantly lower nickel extraction costs in future generation mills.
Technology Focus
St-Georges will move its focus from mining exploration to mining technology research & development with the goal of creating a basket of patented technologies marketable in the near future. The Company will create a subsidiary that will be co-managed by Gary Johnson and Enrico Di Cesare, a metallurgist and director of the Company, which will have the mandate to advance nickel-related extraction research projects.
The near-term research program will target these initial sets of processing technologies already identified by Strategic Metallurgy:
– Pre-concentration flotation of difficult ore under modified chemistry conditions. Possible step change in recovery-grade performance for nickel sulfide flotation;
– Upgrading of nickel laterites by the systematic elimination of gangues materials. Mineralogy driven with hydrometallurgy approach that reduces drastically the cost of iron handling in the process;
– High-pH leaching of high MgO sulfide ores in the presence of complexing agents;
– Treating pyrrhotite concentrates already mined and milled (0.6-1.0% Ni) with hydrometallurgy
Enrico di Cesare stated, “The rise in extraction costs, stringent environmental emission targets and the drop in metal prices have triggered a renewed interest in cost-effective and green processing technologies with existing metal producers (…) our goal is to position ourselves as an important provider of innovative solutions that will enable cash-restricted companies to improve their bottom lines with their current operations, find solutions for minerals that are currently seen as ‘difficult’ and position ourselves as a provider of environmentally friendly processing solutions.”
Financing
Strategic Metallurgy has agreed to put in place a collateralized line of credit (“CLOC”) in favor of St-Georges for an amount up to $1 million CAD. The collateral used for the CLOC will be created in the form of an equity subscription by Strategic Metallurgy for 10,800,000 units (“Units”) at a price of $0.065 per Unit, for gross proceeds to St-Georges of $702,000. Each Unit will include a common share in the capital of the Company at a deemed price of $0.065 and one common share purchase warrant (“Warrant”). Each Warrant will entitle its holder to purchase one common share at a price of $0.10 for a period of three years from closing; the Warrants will be transferable. The Warrants will be distributed to the shareholders of Strategic Metallurgy after their regulatory hold period of four months. The common shares will be held in escrow, with such escrow agent to be appointed by St-Georges.
The CLOC will only be used for R&D expenses. St-Georges will have the choice to repay the CLOC either in cash or by letting Strategic Metallurgy receive the shares held in escrow.
ON BEHALF OF THE BOARD OF DIRECTORS
“Frank Dumas”
FRANK DUMAS, President
About St-Georges
St-Georges is working at developing innovative environmentally friendly mining extraction processing technologies and tailing reclamation solutions. The Company focuses on Platinum-Palladium, Copper-Cobalt & Nickel Extraction Processes. The Company also explores for Nickel on the Julie Nickel Project on Quebec’s North Shore. Headquartered in Montreal, St-Georges’ stock is listed on the CSE under the symbol SX, on the US OTC under the Symbol SXOOF and on the Frankfurt Stock Exchange under the symbol 85G1. For additional information, please visit our website at www.stgeorgesplatinum.com
The Canadian Securities Exchange (CSE) has not reviewed and does not accept responsibility for the adequacy or the accuracy of the contents of this release.