​MGX Minerals Finalizes Acquisition of Purlucid Treatment Solutions Inc. -- Becomes Full-Service Lithium Extraction And Water Treatment Option for O&G Developers

Spotlight Companies |

MGX Minerals Inc. (XMG: CNX) has finalized an investment agreement for the purpose of staged acquisition of up to 100-per-cent interest in PurLucid Treatment Solutions Inc., a water and waste water treatment technology company.

This marks the finalization of investment agreement, intellectual property and performance agreements, including exclusive licensing of all rapid lithium extraction technology to MGX. The acquisition process initiated in September, 2016, through which MGX is initially acquiring 26.6 per cent of PurLucid for a $1-million investment and is choosing to exercise its option of acquiring an additional 7.5 per cent through the issuance of 1.5 million shares to PurLucid shareholders. MGX has fully integrated its lithium brine extraction technology with PurLucid's water purification process to become a full-service water treatment option for oil and gas exploration and companies.

"As activity within the oil and gas industry continues to pick up in North America, the cost of wastewater treatment and disposal options is a growing concern for oil and gas developers," said Jared Lazerson, president and CEO of MGX Minerals. "This new technology enables oil and gas providers to treat their wastewater with a highly effective, low energy solution which replaces conventional methods such as disposal wells using the brine water as the primary feedstock for our petrolithium extraction process. Under these conditions, our investment in and acquisition of PurLucid is an efficient way to combine the development of valuable minerals with wastewater management for the upstream oil and gas industry."

PurLucid's patented nanoflotation technology, which was recently recognized as a finalist for the prestigious international Katerva Award, was designed specifically for oilfield environments by professionals with experience at large oil and gas service companies. It separates impurities from oil and gas wastewater and produces clean water as a final product. The technology allows for the recycling or controlled release of oilfield wastewater and eliminates downhole or alternative storage, one of the largest operating costs for the oil and gas industry today.

"During my 23 years of experience in water management in the oil and gas industry I've seen great need for a full-service water treatment option that's both efficient and cost effective," said Dr. Preston McEachern, founder and CEO of PurLucid Treatment Solutions Inc. "This investment by MGX allows us to expand the reach of our technology and bring accelerated water purification to more oil and gas fields across North America."

PurLucid's technology will integrate with MGX's rapid lithium extraction process to separate oil, to a high degree of purity, from lithium-bearing brine, allowing for more efficient large scale recovery of lithium and other valuable minerals from oilfield brine.

Last year, MGX and PurLucid entered into a definitive agreement (the "Agreement") which allows the Company to acquire up to 100 percent of PurLucid (see press release dated November 14, 2016 ). MGX's initial 50 percent interest in PurLucid is to be acquired through an investment of $4.2 million (CDN) and an additional 15% of PurLucid by issuing MGX shares to PurLucid shareholders in exchange for their shares with a right to acquire all other remaining shares at future date.

Qualified Person

The technical portions of this press release were prepared and reviewed by Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.

MGX may decide to advance its petrolithium projects into production without first establishing mineral resources 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 MGX Minerals

MGX Minerals is a diversified Canadian mining company engaged in the development of large-scale industrial mineral portfolios in western Canada and the United States. The Company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta as well as petrolithium exploration in Utah. Learn more at www.mgxminerals.com.

In the interest of full disclosure, we call the reader's attention to the fact that Equities.com, Inc. is compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way be considered as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker dealer, investment advisor, financial analyst, investment banker or other investment professional. We are a publisher of original and third party news and information. All profiles are based on information that is available to the public. The information contained herein should not be considered to be complete and is not guaranteed by Equities.com to be free from misstatement or errors. The views expressed are our own and not intended to be the basis for any investment decision. Readers are reminded to do their own due diligence when researching any companies mentioned on this website. Always bear in mind that investing in early-stage companies is risky and you are encouraged to only invest an amount that you can afford to lose completely without any change in your lifestyle. Equities has been compensated with cash, common shares and/or warrants for market awareness services provided.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
XMG:CNX MGX Minerals Inc. 0.93 0.02 2.20 185,729


Emerging Growth

IMV Inc.

Immunovaccine Inc is clinical stage biopharmaceutical company. The Company develops products based on its proprietary vaccine enhancement platform in T cell activating therapies for cancer.