SX:CC - Corporate & Operational Update
(TheNewswire)
Montréal – TheNewswire - June 5, 2024 – St-Georges Eco-MiningCorp . (CSE: SX) (OTCQB: SXOOF) (FSE: 85G1) wouldlike to provide an update on the progress of its battery recyclingoperations and offer some guidance on the progress of otherinitiatives.
EVSX
Battery Operations
Per the terms of the environmental compliance approvalissued to EVSX by the Ministry of the Environment, Conservation andParks, the financial assurance required by the Ministry is now inplace, having been accepted in the form of an all-cashguarantee.
The Company is now in the process of completing thecommissioning of its 4,200 tons per year industrial line at itsThorold, Ontario location, for a final inspection by the pertinentregulatory authorities.
Management is now negotiating the form of the batteryallocations with its sponsors and partners. It has also reactivateddiscussions with suppliers that require recycling credits. The aim isto use the results obtained in the first three months of batteryprocessing operations to help finance the installation of the first ofthe larger multi-chemistry lines in storage at the plant.
Entities with large volumes of lithium batteries aresoliciting the Company to provide processing capacity. After obtainingan update to its operational and environmental permits, the Companywill be better positioned to enter this market segment. This isexpected to occur after accumulating several months of financial andtechnical data from the operations of its alkaline industrialline.
Management is now planning to use the Thorold plant asits showcase.
All expansion projects outside Thorold are expected tobe done via partners, joint ventures, or licensing agreements. Withdiscussions at different stages, the Company is prioritizing potentialpartnerships with private and para-public entities with a clear andfast track to permitting and in already established adjacent orcomplementary operations.
St-Georges Metallurgy
Freeing Up ManagementResources
EVSX Corp. is the entry point for the Company into thesupply of blackmass for St-Georges Metallurgy (SXM), where margins areexpected to be significantly more important. Although industrialoperations experience exists within the current management, EVSXshould transition from the current management to hired operators inthe future. This move frees up St-Georges management to focus ondeploying SXM’s blackmass metallurgical processes where expertise isnot interchangeable.
Micronutrient and Soil RegenerationAgreement
SXM has entered into an updated agreement with anindustrial farming group to process the initial two years of mainlymanganese-zinc-potassium hydroxide blackmass that EVSX operations willgenerate. The partners expect to create a joint venture following theinitial testing period. The product blend design and the request forgovernment certification will allow the joint venture to sell itshigh-value micronutrient and soil regenerator blends to big boxstores. Initial research has shown that in some contexts, these products could bring higher profits than theproduction of ferro-manganese and zinc. This will provide flexibilityto the partners to route the blackmass to the most profitableoperations based on market conditions.
U.S. Subsidiary
St-Georges Metallurgy Corp. expects to create a U.S.subsidiary that will allow it to meet some of the requirements forUnited States Department of Defense Title III grants.
Lithium Technology LicensingAgreement
The Company would also like to disclose that it hasentered into an exclusive agreement with LiOH Corp., a corporationcreated to finance and market SXM lithium technology. Frank Dumas, anofficer of St-Georges, is the company’s president, and certainofficers, directors, and shareholders of St-Georges have becomeshareholders of the new entity.
The Intellectual Property license is not transferableand is limited to the processing of mining feedstock exclusively.Hybrid operations, from battery blackmass, metal recycling, and othermineral sources supplemented by primary mined material, are not partof the license and are still expected to be operated by SXM.
LiOH will pay all cash disbursements required tofinance and operate the initial showcase lithium nitrate and lithiumhydroxide operations. The initial budget calls for disbursements of$5m to $8m. No cash commitment from SXM is required. Equipmentmanufacturers and governments are expected to contribute to portionsof the financing.
St-Georges will not have to raise money for thisoperation, and its contribution is limited to access to its scientistsand innovation team. LiOH will finance any potential IP challenge. Atimeline established by the partners requires disseminating afeasibility study and starting the preliminary engineering work forthe larger industrial plant by March 31, 2027.
St-Georges will receive 8% of the outstanding shares ofLiOH either at the time of a public listing or at the start of thecommercial operations that coincide with the start of the regularroyalty payments.
LiOH will pay an initial advance royalty fee of$125,000 before year-end and will pay advance royalty fees of $125,000each year until commercial operations start.
For all its operations, LiOH shall pay SX Royalties as follows:
For the period starting from the date on which LiOHstarts to process lithium-bearing material until the date thecumulative operations reached the milestone of 10,000 tons oflithium-bearing material being processed in connection with theManufacture of Licensed Product (the “ First Royalty ”)there are no Royalties payable.
For the period starting from the date on which LiOH reaches theinitial milestone of 10,000 tons of lithium-bearing material beingprocessed and for the initial 250,000 tons of lithium-bearing materialbeing processed annually, the Royalties owed per quarter, shall beequal to three percent (3%) of the Net Sales of Licensed ProductManufactured and sold within the relevant quarter and when payment for the product is received.
For the period startingfrom the second milestone where LiOH reaches an annual processingproduction for lithium-bearing material in excess of the initial250,000 tons annually, the excess production of Licensed Product willbe applied (the “ SecondRoyalty ” ), the excessRoyalties owed per quarter shall be increased by two percent (2%) fora cumulative total of five percent (5%) of the Net Sales of LicensedProduct Manufactured and sold within the relevant quarter on theexcess material, with no effect on the initial 250,000 tons ofproduction of lithium-bearing material which will remain under theFirst Royalties payment structure and remain at three percent(3%).
Royalty payments shall be calculated and accrued on aquarterly basis and pro-rated, as applicable, per calendar year[( i.e., March 31, June 30, September 30, and December 31)] and LiOH shall payto SX all outstanding amounts within thirty (30) days of the receptionof payment for the products sold. LiOH shall deliver a businesssummary for every quarter that summarizes, among other things, thegross amount billed and calculation of Net Sales for the LicensedProducts. Each payment shall be accompanied by a statement indicatingthe calculation of the Royalties for each Plant in Operation.
Royalty Buy Back Right on “ Second Royalty ” :
During the Second Royalty Term, at any time after aPlant has reached a processing level of 250,000 tons or more ofspodumene in connection with the Manufacture of Licensed Products,LiOH shall have the right (the “ Royalty Buy Back Option ”) to repurchase a portion of SX’sright, title and interest in and to the Royalties hereunder inconsideration of paying CA $25,000,000 (the “ Buy Back Price ”).Upon payment of the Buy Back Price, the Royalties shall be reducedfrom five percent (5%) of the Net Sales to three percent (3%) of theNet Sale. LiOH may exercise the Royalty Buy Back Option by deliveringto SX a written notice of exercise (the “ Royalty Buy Back Notice ”) at any moment and the buy back of the second royaltywill become effective on the 1 st day of thefollowing quarter. Thereafter, the Royalties set out in Section shall be reduced to three percent (3%) for theremainder of the Second Royalty Term.
H2SX
Demonstration Plant
The Company is working on a US$7.5m financing for whichit has received interest and is initiating due diligence withinstitutions’ placees. Current operations are setting up thedemonstration plant in Seoul, South Korea. H2SX is expected tocontribute equally to the proposed budget to put the plant intooperation with its Korean partner and the South Korean government.
Ownership Dilution
St-Georges expects to have its position diluted by thecurrent financing and might also sell portions of its holding to stayunder 20% of the total equity of H2SX.
New Intellectual Property
H2SX expects to receive an exclusive and perpetuallicense for two new provisional patents covering a newly discoveredmethod to make battery-grade carbon with methane-generated hydrogen asa by-product.
St-Georges Eco-Mining Corp
Québec Exploration
A more comprehensive press release that covers theoperations at Manicouagan, an update on permits and technical NI43-101 reports, and 2024 exploration plans will be issued. It willalso include the initial observations on a prospective niobiumdiscovery that is taking shape on the Notre-Dame Niobium CriticalMinerals Project.
Iceland Resources
IR is completing due diligence with companies that haveshown interest in investing directly into its equity prior to itsproposed spin off via a plan of arrangement and the listing of itsshares in Europe and North America. The Company is also in the processof assembling a team of seasoned directors and executives inpreparation for its next phase of development.
Other Corporate Matters
Fenix Battery Metals Inc.
The Company is currently negotiating with and expectsto finalize a detailed agreement with FeNiX Battery Metals, a companyled by Enrico Di Cesare, a director and officer of St-GeorgesEco-Mining Corp. FeNiX would be responsible for financing all itsoperations. An equity payment would be received by St-Georges inshares of FeNiX prior to a going public transaction. FeNiX hasdeveloped metallurgical technologies that could significantly improvethe bottom line and the environmental record of the iron andsteel-making industry. The developments for ferro nickel and ferromanganese are of strategic interest for the St-Georges ecosystem.
Financing Offering
The Company is expecting to announce a financingoffering for $500k to $750k in the form of a convertible debenturewith two half warrants per tranche of unit value of $0.10. Theconversion mechanism shall be a discount to market at the time of theconversion. The interest will be paid in shares of the Company on aquarterly basis. The Company expects to announce the details of thefinancing in a future press release. The proceeds would be used tolaunch the operations at its Thorold, Ontario plant and foradministrative purposes.
ON BEHALF OF THE BOARD OF DIRECTORS
‘Neha EdahTally”
NEHA EDAH TALLY
Corporate Secretary of St-Georges Eco-Mining Corp.
1 About St-Georges Eco-Mining Corp.
St-Georges develops new technologies to solve some ofthe most common environmental problems in themining sector, including maximizing metal recovery and full-circlebattery recycling. The Company explores for nickel & PGEs on theManicouagan and Julie Projects on Quebec’s North Shore and hasmultiple exploration projects in Iceland, including the Thor GoldProject. Headquartered in Montreal, StGeorges’ stock is listed onthe CSE under the symbol SX and trades on the Frankfurt Stock Exchangeunder the symbol 85G1 and as SXOOF on the OTCQB Venture Market forearly stage and developing U.S. and international companies. Companiesare current in their reporting and undergo an annual verification andmanagement certification process. Investors can find Real-Time quotesand market information for the company on www.otcmarkets.com
Visit the Company website at https://www.stgeorgesecomining.com
For all other inquiries: public@stgeorgesecomining.com
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