Date: Dec 11, 2018
VANCOUVER, Dec. 10, 2018 /CNW/ – VanadiumCorp Resource Inc. (TSX-V: “VRB”) (the “Company”) and Electrochem Technologies & Materials Inc. (“Electrochem”) have signed a Patent Option Agreement (“POA”) for Ultra Power Systems Pty Ltd (“Ultra”) to purchase an exclusive license. Ultra plans to utilize the Australian license of VanadiumCorp-Electrochem Processing Technology (“VEPT”) to expedite construction of the world’s first dedicated vanadium processing facility. Ultra’s core objective is to directly integrate low cost battery grade vanadium electrolyte into vanadium redox batteries from virtually any source in a fraction of the time and capital requirements of current vanadium extraction processes. The VEPT dramatically reduces emissions associated with vanadium extraction as well as substantially offsetting the operating cost through the production of valuable by-products.
The resultant vanadium electrolyte therefore has a minimal carbon footprint as well as being significantly cheaper. Additionally, the electrolyte offers an exceedingly lengthy usage life (effectively perpetual reuse), which provides an excellent basis for long-term leasing. This will provide end users the option of avoiding a large portion of the initial capital outlay by distributing it over time through a lease arrangement (with the electrolyte remaining an asset of Ultra).
Key aspects of the signed POA include the following terms with all financial considerations split evenly between VRB and Electrochem:
- Fully executed agreement signed by all parties November 23, 2018.
- USD $500,000 payment includes exercise of the option.
- Non-reimbursable down payment received upon signing the Patent Option Agreement.
- 6 month option to acquire the exclusive license of VEPT for the jurisdiction of Australia Territory.
- Definitive license terms exercisable in the POA includes a minimum annual payment, financing fees and a gross royalty due upon production, applicable to all vanadium products, ferrous sulfate heptahydrate (copperas), titanium products and other by-products for a project duration of 25 years.
Adriaan Bakker, CEO of VanadiumCorp states, “This agreement represents a new chapter for VanadiumCorp with the benefit of cash flow and a realistic commercialization pathway for VanadiumCorp and Electrochem’ s jointly developed green processing technology. Our vision to establish the most efficient and sustainable solution for energy storage is within reach years sooner then anticipated.”
Francois Cardarelli, President of Electrochem Technologies & Materials Inc. “This Patent Option Agreement is in line with our corporate strategy to monetize our patents that will require large scale operations. This important milestone regarding the VEPT will allow this disruptive and robust technology to be implemented in Australia, a jurisdiction particularly favorable considering the large deposits of vanadiferous titanomagnetite already in production or close to commercial production. This milestone is turning point for licensing our joint IP with VanadiumCorp and Electrochem preceding the national entry phases of VEPT for key global jurisdictions”.
