Under the terms of the agreement, CVMR grants Sama Resources use of its technology to refine the mineralised material from the Samapleu property in Ivory Coast, West Africa, to produce nickel and iron powders.
At present, prices payable for nickel powders treated using CVMR’s technology are at a significant premium above the current LME prices for nickel, providing Sama Resources with a market advantage and growth opportunity not previously available.
[quote]CVMR initiated a pilot program in March 2017 with a 260-gram concentrate of mineralised material from Samapleu.
The concentrate graded 3.01% copper, 2.30% nickel and 25.90% iron. Preliminary results indicate a 91% and 92% recovery rate for the nickel and the iron, respectively.
“The partnership with CVMR will enable Sama Resources to complete technical studies for a proposed open pit operation at Samapleu with higher returns compared to a simple flotation process,” says president and CEO of Sama Resources Dr. Marc-Antoine Audet.
“We expect to complete the Samapleu feasibility study by year-end 2017.”
“The geological formation of the Samapleu deposit is ideally suited to CVMR’s nickel and iron powder production technology. The manufacture of metal components and additives has undergone a paradigm shift in the past ten years as 3D printing and metal injection moulding are replacing many other manufacturing methods,” says CVMR chairman and CEO, Kamran M. Khozan.
“Accordingly, the demand for nickel and iron powders is increasing more rapidly than most optimistic forecasts. Sama Resources is well positioned to take advantage of this major shift in the manufacturing industry,” adds Khozan.
The licensor authorises Sama Resources to use CVMR’s patents and technology to operate nickel and iron powder manufacturing plants in the Ivory Coast, to be built, commissioned and delivered on a turn-key basis by CVMR, following a positive feasibility study.
The plants will be dedicated to the production of metal powders used in a variety of products and manufacturing processes, including: 3D printing (additive manufacturing), aerospace and automotive parts manufacturing, medical instruments, computer and electronic parts, super alloys, sophisticated net shapes for use in the defence and space industries, metal injection moulding, anti-seize lubricants, chemicals and catalysts, etc.
In consideration of the license, Sama Resources has agreed to pay CVMR C$5 000 000 either in cash or, subject to approval from the TSX Venture Exchange, through the issuance of an equivalent value of common shares of Sama Resources within 90 days of the granting of the mining license.
Share price will be based on the average closing price of those shares on the exchange for each day during the three months of trading prior to issuance.
In addition, CVMR will receive a royalty equal to 15% of the sale price of metal powders produced by the plants in excess of the London Metal Exchange price of the elements contained in such powders.
Sama Resources and CVMR will negotiate a project construction agreement with respect to the plants.
Sama Resources has also retained CVMR to perform a detailed technical study to confirm the commercial viability of producing nickel and iron powders from nickel-iron concentrate obtained from the flotation of the mineralised material of the Samapleu deposits. Sama Resources will apply to the Department of Mines in Ivory Coast to transform the current exploration permit #123 into a mining license.
Feature image credit: Wikipedia