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Alliance Magnesium receives $30.9 million in financing from the Government of Québec for its First Commercial Phase

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Alliance Magnesium receives $30.9 million in financing from the Government of Québec for its First Commercial Phase

Canada NewsWire

BROSSARD, QC, Aug. 21, 2018 /CNW Telbec/ - ALLIANCE MAGNESIUM INC. ("AMI") is pleased to announce that it has signed a financing agreement with Investissement Québec and the Government of Quebec's Economic Development Fund in the amount of $30.9 million for the construction of its First Commercial Phase at its facility in Danville, Quebec. This investment is part of a $104.9 million financial package which includes other institutional partners. The financing is in the form of a $17.5 million loan and a $13.4 million equity interest.

Logo: Alliance Magnesium Inc. (CNW Group/Alliance Magnesium Inc.)

"We are delighted to have the Government of Quebec as a major partner in the commercialization phase of our project," said Dr. Joël Fournier, President of AMI. "This partnership demonstrates its recognition of AMI's contribution to achieving GHG reduction goals. The metal produced by AMI will have a low carbon footprint and will be used in the production of parts for the automotive and aerospace industries, " he added.

The magnesium market is booming and AMI's potential as America's next major producer is already recognized internationally. After a successful piloting phase, this First Commercial Phase will enable AMI to start commercial production of both primary and secondary magnesium totaling 11,700 tons per annum and sell its products in the North American and European markets.

"Like the large aluminum smelters that have given Quebec its global role as a large producer of light metal with a low carbon footprint, Alliance Magnesium will allow the creation of a new light metals sector that can be complementary to aluminum for alloying purposes in rapidly growing markets worldwide" stated Michel G. Gagnon, Chairman of the Board and CEO of AMI.

Construction of the First Commercial Phase will begin in the fall of 2018 and will be completed by the end of 2019. The plant will directly hire 63 workers.

About Alliance Magnesium Inc.
Alliance Magnesium is a Canadian private company engaged in the production of metallic magnesium and other valuable minerals from serpentine. AMI has developed an innovative technology and process that gives it a cleaner and less expensive approach than those currently used by magnesium producers around the world.  The magnesium produced by AMI is derived from the recovery of a mining residue and is transformed by a clean electrolysis process.  It is sold in the markets of the automotive and aerospace industries to reduce their products' weight and thus reduce their environmental footprint. AMI has developed a three-step development program that will lead to an annual production of 50,000 tons in 2022 and the creation of more than 250 jobs.

Additional information about AMI is available at alliancemagnesium.com.

 

SOURCE Alliance Magnesium Inc.

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