MGX Minerals to acquire 100% of B.C. silica property and begin Phase I on California magnesium project
by Greg Klein | July 6, 2015
Two July 6 announcements show MGX Minerals CSE:XMG advancing its industrial minerals portfolio. The company now plans to increase its stake to 100% of the Longworth silica property in British Columbia and begin exploration on its White Moon magnesium project in California.
MGX picked up White Moon, originally called Needles, just last month. Beginning July 13, MGX plans geochemical sampling of 40 historic trenches, mapping and outcrop sampling. Hoping to build and operate the United States’ only magnesium oxide wallboard production plant, the company plans a scoping study to assess infrastructure and potential plant locations.
MGX has engaged Jack Bal as a consultant to help advance its magnesium assets. Having raised over $50 million for junior resource companies, Bal was recently involved in mill permitting for CMC Metals’ (TSXV:CMB) Radcliffe gold project in California.
A purchase agreement with Zimtu Capital TSXV:ZC would increase MGX’s interest in the Longworth silica property to 100%. Replacing a 50% earn-in, the new deal would cost MGX 700,000 shares at a deemed price of $0.30. The road-accessible central B.C. property was considered one of the province’s top silica occurrences by the B.C. Geological Survey. MGX hopes to produce ferro-silicon, an essential alloy in iron and steel production.
The company also holds most of B.C.’s significant magnesite occurrences.
Late last month the company updated its Driftwood Creek magnesium project in southern B.C. and doubled a previous private placement offer up to two million shares at $0.30.
Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Zimtu Capital.