SX:CC - St-Georges Announces 20000 tons of Industrial Battery Processing Capacity at the Company's Plant in Thorold Ontario - Corporate Update
(TheNewswire)
Montréal, July 13, 2023 –St-Georges Eco-Mining Corp. (CSE:SX) (OTC:SXOOF) (FSE:85G1) would like to disclose that it has receivedconfirmation of delivery of the second automated industrial batteryprocessing circuits at its EVSX plant in Thorold, ON. Each circuit iscapable of processing 7,920 tons of batteries per year. This circuitwill add capacity to the circuits already delivered, allowing theCompany to process 20,000 tons of spent batteries annually. Thisincludes a 4,800-ton capacity for alkaline battery processing thatwill be relocated to a new and definitive site within the ThoroldIntermodal facilities in order to meet new environmental and logisticsrequirements.
Over the last three weeks, 25 truck shipments ofindustrial equipment were moved to the Thorold plant, including 24maritime containers. The shipments were unloaded and unpacked by theemployees of the BMI Group acting on behalf of the Company.
The circuits have undergone independent testing at themanufacturer’s plant prior to shipping. New electrical and safetypanels are being commissioned to meet site-specific regulatory andsafety requests. The Company is planning the first visits of industrystakeholders, battery manufacturers, buyers, and other potentialpartners scheduled to start later this summer.
In light of the significant interest received fromvarious groups with different business models, each compatible withfaster capacity growth, the Company has asked the manufacturer totemporarily hold shipment of the third manufactured circuit while itreviews potential partnerships or licensing agreements. This willallow more flexibility and enable the final delivery to be directed toa move-in-ready site with potential partners or licensees. This movewill also mitigate issues expected to arise from labor negotiationsand disruptions during transit via Canadian ports.
EVSX efforts are now focused on the new lines and themoving, environmental permitting, and testing of the augmentedcapacity alkaline circuit. Using battery feedstock quantities belowthe threshold of industrial production operations, EVSX will test andadjust the circuits of the alkaline line. Training and operationalsafety manuals have been commissioned and should be completed foraudit in Q3. The Company intends to have payroll and human resourcesoutsourced to specialized third parties; the related contracts shouldbe in place before the start of the larger operations.
As part of its ongoing analysis of its business model,EVSX is also reviewing proposals for partnerships to establishcircuits in new markets based on the design and continuousimprovements originating from the Thorold facility. Remote productioncontrol with sensor and management dashboard software would allow theCompany to provide expertise, remote problem solving, and engineeringand metallurgy centralization. The partners would be able to monetizethe initial metals separated while establishing profit-sharingagreements with the Company for the minerals concentrate processingoperations. This configuration would enable faster growth of theoverall operations and is now the model being suggested for alladditional plants in the short term.
Internal Disclosure & RegulatoryReview
As disclosed in a press release on May 31, 2023, theCompany’s board of directors has reviewed the transactions of one ofits insiders, Mr. Frank Dumas, that were filed late, in error, oromitted since becoming an insider of the Company. Mr. Dumas has sincestepped down from his position on the board ofdirectors and collaborated with the board. He brought to complianceall the transactions that were either omitted or required to beamended due to mistakes in the reporting.
Aside from the late reporting of histransactions, no other issues were discovered during the internalreview.
At this stage, the Company is aware that a fine wasimposed on Mr. Dumas in relation to this issue. A regulatory requestwas made to the Company to address the improper balance of insiderownership published in the Company’s annual information circular asa result.
Over the years, the Company has relied on the SEDIfillings of all its insiders to disclose the insider ownership of theCompany as part of its annual information circular. To date, theprocess did not involve any additional verification aside from theself-reporting on the SEDI platform.
The Company is now reviewing additional verificationsteps that will allow it to confirm the size of the securitiesownership and interests of insiders directly related to the Company.The Company expects to choose a process shortly, which will beimplemented as early as this year.
The next information circular, withthe corrected figures, will be disseminated by the Company followingthe publication of its annual audited financial report later thismonth.
H2SX – Hydrogen Update
Following a global analysis of the overall businessplan and objectives of St-Georges, management decided to radicallyshift its approach to the development of H2SX and the deployment ofits business model.
The Company now expects to collaborate with its Koreanpartners and shareholders to use an upgraded demonstration unit inSouth Korea for all improvements to the process and a third party’sdue diligence and review. This will allow the Company to avert thetime and cost required to build a showcase plant in Canada. Multipleparties, including institutional investors and major industrialactors, have shown strong interest in a faster, more directdevelopment and deployment of industrial units prompting H2SX to usethe Korean facilities to showcase its abilities to the scientific andengineering teams of its potential partners and clients.
This measure should save years and allow the Company toskip directly to the first commercial plant, thus obtaining themaximum benefit for St-Georges by eliminating almost all dilutingfinancing efforts for the Company by linking the financing to theplant itself. The team is negotiating this adjustment to the originalagreement.
This change will impact the total ownership ofSt-Georges in H2SX. However, it will eliminate the vast majority ofthe financial requirements and liabilities assigned to the Company.H2SX will open its share capital for direct investments in parallel.The new structure of capital is currently being studied.
The final independent preliminary engineering study iscompleted. H2SX will provide its content to Altima Energy in thecoming days allowing for the completion of the first milestone of theagreement between the two companies. The long form agreement is beingmodified to reflect the strategic changes. It could allow Altima(TSX-V: ARH) to participate financially alongside institutions infinancing the subsidiary. The detailed engineering study should alsobe ready within a few months following all required site visits.
The internal review has shown that the technologyshould allow H2SX upgraded units to compete directly with most steammethane reforming (SMR) hydrogen producers and, often, at bettercosts. In this context, the complete absence of greenhouse gasemissions (carbon dioxide – CO2) and the environmental benefit ofthe process becomes an added bonus that will positively impact itsoperating costs and largely improve its profit margin.
“(…) Over the short period oftime since my nomination as a director of the Company, I have reviewedthe business plan, corporate structure, and corporate governancepractices (…) I am impressed with the professionalism of theCompany’s motivated team and look forward to assisting with therationalization of St-Georges’ business structure with the objectiveof unlocking shareholder value (…)” commented James C. Passin, Director of St-Georges Eco-MiningCorp.
National Instrument 43-101 TechnicalReports
The Company previously reported that independenttechnical reports were commissioned on the Manicouagan, Julie, andThor projects. At the time of this release, all required site visitswere completed by the independent consultants. The Company expects toreceive the initial drafts of these reports in Q4 2023. After initialdelivery and review, the decision to convert some of these reportsinto resource estimates will be made.
Mineral Exploration & OtherUpdates
The Company plans to return to the Manicouagan Criticaland Strategic Minerals Project to drill new targets identified duringthe extensive geophysics work conducted in the first half of 2023.Additional drilling might also be conducted to better define thehigh-grade zone already discovered.
In Iceland, a team of geologists is conducting surfaceexploration work on different licenses. The geothermal-related in-situproduction project is also progressing, and management is in theprocess of sharing data with industrial partners and the localauthorities to advance this initiative further.
ON BEHALF OF THE BOARD OF DIRECTORS
“James C.Passin”
Director of St-Georges Eco-Mining Corp.
About St-Georges Eco-Mining Corp.
St-Georges develops new technologies to solve some ofthe most common environmental problems in the mining sector, includingmaximizing metal recovery and full-circle battery recycling. TheCompany explores for nickel & PGEs on the Manicouagan and JulieProjects on Quebec’s North Shore and has multiple explorationprojects in Iceland, including the Thor Gold Project. Headquartered inMontreal, St-Georges’ stock is listed on the CSE under the symbol SXand trades on the Frankfurt Stock Exchange under the symbol 85G1 andas SXOOF on the OTCQB Venture Market for early stage and developingU.S. and international companies. Companies are current in theirreporting and undergo an annual verification and managementcertification process. Investors can find Real-Time quotes and marketinformation for the company on www.otcmarkets.com
Visit the Company website at www.stgeorgesecomining.com
For all other inquiries: public@stgeorgesecomining.com
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the accuracy of the contents of thisrelease.
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