Privately-owned Canadian magnesium producer Alliance Magnesium Inc. has announced its acquisition of all the shares of Magnola Metallurgy Inc. and Magnola Mining Inc. ("Magnola") in a transaction gives AMI full ownership of Magnola's industrial and mining sites in Danville, Quebec.
The acquired sites include facilities and equipment from the former magnesium plant, whose value was recently estimated by an independent appraiser at more than CAD $85 million. The property also contains a valuable residue deposit estimated at more than 100 million tons of serpentine rock, which is made up of approximately 25% magnesium, and is the raw material that AMI will use in its production.
The transaction provides AMI with the infrastructure to deploy the construction and operation of a 50,000-ton magnesium plant by 2021, expected to create more than 350 direct jobs.
Dr. Joël Fournier, Chief Executive Officer, AMI, commented, "The transaction marks the company's clear intention to play a dominant role in global magnesium production, and confirms its position as one of the largest manufacturing projects in Canada."
Alliance Magnesium is engaged in the production of magnesium metal and other valuable minerals from serpentine. The company has developed technologies and processes that result in a cleaner and less expensive production approach than those currently used worldwide by magnesium producers. The new AMI process is an alternative to the thermal process, one of the most important sources of CO2 emissions in the world.
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