BROSSARD, QC / April 27, 2015 / Nippon Dragon Resources Inc. (the "Corporation" or "Nippon") (NIP:CA) , is extremely pleased to announce that it has signed an exclusive distribution agreement with SAFESCAPE for its patented Thermal Fragmentation mining method in various contracts and mining operations throughout the Countries of Australia, New Zealand, Papua New Guinea, Indonesia and the Philippines ("the Territory"). Highlights of the distributorship agreement include the granting of the exclusive rights to SAFESCAPE for the usage, distribution, training and marketing of the Method by SAFESCAPE who will have the exclusivity in the Territory for a period of 5 years once certain terms specified within the agreement have been met. It is intended that the revenues generated by the agreement be based using a monthly Intellectual Property fee model ("the IP fee") and an equipment-leasing model.
SAFESCAPE plans on also using the Method to facilitate the installation of its Safescape Laddertube escapeway system designed specifically for use in underground mines. A fully-enclosed, durable polyethylene product, Safescape Laddertube is not impacted by water, salt or other mineral deposits. It requires minimal upkeep, fits comfortably within a 1m / 42" openings and provides for the ultimate in user safety.
Nippon will manufacture and ship two (2) Thermal Fragmentation units known as "Mini-Dragons" to SAFESCAPE premises in Forrestfield, Western Australia. Nippon will retain ownership of the units that will become part of Nippon's fleet of Thermal Fragmentation units.
"This agreement is the perfect example of how we intend to derive a constant flow of revenue for the Company while achieving global availability of our thermal fragmentation mining method. SAFESCAPE's management's vision and business strategy are totally in line with ours and we look forward to working closely with them to rapidly develop these major markets." stated Andre Savard, Nippon's President and CEO.
Mr. Steve Durkin, Managing Director of SAFESCAPE reports: "I quickly realised that this versatile and innovative mining method is a solution needed by the mining industry in order to reduce costs, increase productivity and contribute to a safer workplace. I intend to use this innovative technology not only for regular stoping and mining development services but also for creating 1m diameter openings in order to install our manway and escapeway systems in lieu of using raiseboring or conventional raise blasting methods."
SAFESCAPE manufactures and installs the Safescape Laddertube escapeway system to mining and other industries. SAFESCAPE commenced operations in 2010, since then, over 12,000m of Laddertube have been installed worldwide. With offices in Bendigo, Victoria, Perth, Western Australia and Denver,USA, SAFESCAPE is able to meet the needs of mining companies globally. SAFESCAPE' vision is to create a safer and better underground mining workplace globally and its success has been recognized through various awards. Please visit the website www.safescape.com
Additionally, Nippon is pleased to announce the closing of a second tranche of the non-brokered private placement. This second tranche is for 812,500 units of the Corporation at a price of $0.08 per unit (the "Units"), for aggregate gross proceeds of $65,000.00. Each unit consists of one common share in the share capital of the Corporation (a "Common Share") and one warrant of the Corporation (a "Warrant"). Each warrant entitles the holder thereof to purchase one additional common share in the share capital of the Corporation at a price of $0.12 per common share for a period of 24 months following the closing of the private placement.
All securities issued in connection with the Private Placement are subject to a four month and one-day hold period from the date of issuance, expiring on August 28th, 2015. The Corporation intends to use the net proceeds of the Private Placement for general corporate purposes and working capital for adequate deployment of the thermal fragmentation technology on different projects at the national and international level.
Nippon is active in the exploration and the development of gold resources in Quebec. The Corporation holds a gold property with resources recognised in accordance with NI43-101, a modular treatment plant and also an exclusive license for the Thermal Fragmentation mining method.
The company's growth strategy is based on:
-The development of its gold deposits with the objective of producing revenue from its operations;
-Increasing the value of its mining assets by prioritizing the exploration targets; and
-The commercialisation and employment of its thermal fragmentation technology.
For additional information:
John Stella, Investor relations (514) 718-7976 firstname.lastname@example.org
Andre Savard, President & CEO (450) 510-4442 email@example.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration and production activities and events or developments that the Corporation expects, are forward looking statements. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Ressources Nippon Dragon Resources Inc. 7055 Taschereau Blvd., suite 500, Brossard (Quebec) J4Z 1A7
Tel: (450) 510-4442 www.nippondragon.com