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MGX Minerals – Revolutionary or Evolutionary?

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MGX is the first Company to separate lithium from oil well wastewater.

– Marc Bruner, Chairman, MGX Minerals click here

Developing a firm foundation is important in many areas of life. The Chinese bamboo tree is a good example of this. When a Chinese bamboo tree seed is planted, even after watering and nurturing it for an entire growing season, the farmer won’t have the pleasure of seeing it grow even one inch. Then, after the second growing season, a season in which the farmer takes extra care to water, fertilize and care for the bamboo tree, the tree still hasn’t sprouted. This test of patience will go on for four years. The farmer has nothing tangible to show for all of his labor in trying to grow the bamboo tree. Then along comes year five. In the fifth year the farmer will finally experience the fruits of his labor and that seed will finally sprout and the bamboo tree will grow up to eighty feet in just one growing season! How can this be? It is a possibility that the little tree was merely lying dormant for four years, only to grow exponentially in the fifth. Or, is it possible that the little tree was growing underground, developing a root system; one strong enough to support its potential for outward growth in the fifth year and beyond? The answer is obvious of course. Had the tree not developed a strong unseen foundation, it could not have prospered and grown tall when it finally did sprout. 1

One might compare MGX Minerals (CSE: XMG) to the above analogy – it appears to be  a company that has been building that firm foundation and now has the potential to grow exponentially.

My readers know that I have written about MGX Minerals for the past couple of years and after they partnered with Purlucid about a year ago, I saw the huge potential and decided to make it my top pick. The stock was sitting around $.15/share, rose to almost $3/share and has been hovering around the $1/share level. I think it’s clear that MGX is poised to grow, because it has clearly been developing a strong root system with the new technologies that have been developed recently. The recent flood of positive news seems to support this idea. I have decided to write this longer article to both help summarize MGX to new readers and to provide an update on what is transpiring with the company.

As Bob Moriarty stated:

In business and in life there are evolutionary changes and revolutionary changes. Mining lithium is evolutionary. There is plenty of it around but because of the need for electric vehicles and a need to store massive amounts of electricity, the demand for lithium has gone through the roof.
But MGX and Jared Lazeson are on to something quite revolutionary. You see a lot of lithium comes from brine found in basins. Chile, Argentina and Bolivia are home to a lot of the production of lithium. Basically they drill the basins until they come to the brine. They pump it to the surface and spread it out in giant ponds where the water eventually evaporates and they can collect the solid material containing the salt, magnesium and lithium and then further concentrate the material for sale as a commodity. In these basins, naturally the brine is considered valuable, an asset. click here

MGX is committed to developing their assets in a “socially responsible manner that ensures economic prosperity, environmental stewardship and social responsibility for all stakeholders.”This is evident in their groundbreaking developments in the area of oil field waste water purification and mineral extraction from that same waste water.  What an exciting phase of growth MGX  is currently undergoing! There have been many news releases recently that demonstrate how MGX is indeed ‘sprouting’ under the visionary leadership of President Jared Lazerson. I met Mr. Lazerson about 3 years ago and what I liked about him was the fact that he was open and very knowledgeable, a change from many other ‘leaders’ in the industry. The colloquial statement, “management is the key to any successful business” rings true. Mr. Lazerson’s innovative style has resulted in the growth of MGX by adding new technologies and agreeing to purchase Purlucid Technologies. Purlucid is a water and wastewater treatment services company that holds a distinct advantage over their competitors due to their vast expertise in the industry. Their knowledge of the changing market demand towards water reuse and their impressive  technology portfolio that focuses on  reducing  costs and energy consumption while delivering high quality treated water, sets them apart from their competitors3

 “The company’s rapid recovery process concentrates lithium, magnesium and other minerals from a variety of wastewaters using low-energy, low-cost nanofiltration technology. This proprietary design process is currently covered under patent and patent-pending applications. MGX and engineering partner PurLucid Treatment Solutions have integrated this design process with exclusively licensed and patented nanoflotation technology that purifies waste waters. Combined, this clean technology has global implications as it can be utilized in a variety of different scenarios, ranging from oil field operations to municipal water treatment centres or as stand-alone lithium and mineral extraction units with clean water byproduct.”4

That this nanoflotation technology purifies waste waters in a cost efficient manner is exciting news to oil and gas producers. According to Dr Preston McEachern CEO and founder of Purlucid, “Treatment of wastewater has always been a challenge and significant cost to oil and gas producers.” He goes on to say that they are able to build the first commercial system at an operating oil production facility in Alberta and to demonstrate the large cost and energy saving that can be achieved with these systems.5  Water is such a vital resource to all of us and this technology will be a great fit for states such as California that are suffering from both a water and clean water shortage.

The rapid recovery process that is part of the nanofiltration technology also concentrates lithium in a much shorter period of time than that current technology does. With increasing demand for lithium this is welcome news. According to Statista.com,

“In 2025, the total demand for lithium is expected to reach 422,614 metric tons of lithium carbonate equivalent. Increases in battery demand will be a strong driver of lithium consumption in the near future, but producers are currently limited to their ability to match demands.”6

The ability to extract lithium from oil wastewater vs traditional methods of extraction is a game changer for the lithium market. This new technology couldn’t come at a better time, because according to Bloomberg,

We’re going to need more lithium. Starting about two years ago, fears of a lithium shortage almost tripled prices for the metal, to more than $20,000 a ton, in just 10 months. The cause was a spike in the market for electric vehicles, which were suddenly competing with laptops and smartphones for lithium ion batteries. Demand for the metal won’t slacken anytime soon—on the contrary, electric car production is expected to increase more than thirtyfold by 2030, according to Bloomberg New Energy Finance.7

Another exciting advancement that has recently been announced by MGX and Purlucid is advancement in magnesium extraction. Lithium brine with high magnesium content has been successful in removing all of the 76000mg/l of magnesium, reducing the post treatment concentration to non detect levels from lithium brine bulk samples shipped from a US site.  This recent optimization focused on addressing complex brines with very high magnesium levels as well as extraction to a common marketable form of magnesium compound, namely magnesium hydroxide. This compound is commonly used to treat municipal wastewater and also desulphurize flue gases from power plants. High concentrations of magnesium in traditional lithium brine have been prohibitive in traditional solar extraction scenarios, but this new advancement changes this.

”Removal of very high levels of magnesium opens up a large number of global lithium brine sources for consideration that were previously considered too high in magnesium. This represents a triumph of technology over perceived resource quality, in particular, that the magnesium has been extracted in a common form of widely used industrial mineral compound.”8

Continuing in the vein of recent announcements, In November, MGX announced that engineering partner PurLucid Treatment Solutions was awarded C$8.2 million in government funding to support the commercialization of a low energy water treatment system for the oil and gas industry. Specifically, Sustainable Development Technology Canada (“SDTC”) and Emissions Reduction Alberta (“ERA”) have agreed to fund up to $3.2 million and $5 million, respectively. Utilizing its exclusively licensed pretreatment technology, Purlucid will fabricate and deploy a commercial-scale unit within an operating steam-assisted gravity drainage (SAGD) facility in Alberta.9

As recently as December 6th, MGX announced the partial commissioning of its first commercial scale lithium recovery system called NFLi5 at its new manufacturing facility in Calgary.

The pre-treatment nanoflotation and nanofiltration system is now operational with all electrical, control and pump systems in the first two stages of the process operational under constant flow. Additional mineral extraction nanofiltration components are expected to be brought online sequentially over the upcoming weeks and the system will be ready for deployment in early Q1 2018 under full capacity of 750 barrels (120 cubic meters) of brine per day. Additionally, brine samples from two Petrolithium projects in Alberta were successfully processed through the Li-1 Pilot Plant system. A contract with the oilfield operator has already been signed with negotiations underway with the other. The executed contract is based on a per cubic meter processing fee valued up to $2 million CAD annually of wastewater processing revenue in addition to any value from lithium and other minerals extracted. MGX plans to equip dozens of producing oil and gas sites in North America with its in-house commissioned systems .10

MGX could be a really big player in the lithium market with its technology of rapid extraction. MGX is in the process of revolutionizing the lithium world as we have known it. With the commissioning of the first commercial-scale system, the emerging lithium producer has set the course for the generation of income as early as Q1 2018 and is poised to install such systems across North America. At the core of the paradigm shift is the true environmental friendliness of this technology and MGX is capitalizing on this. Environmentally speaking, this is truly revolutionary in industrial mineral processing. 10

I have researched a few companies trying to copy this technology with no avail. They are claiming to use chemicals but there is no proof it works. The versatility of the technology allows it to be used in brine water and also in geothermal which was recently announced. The exciting thing is that most other lithium producing or soon to be producing companies have to dig in the ground to retrieve lithium. MGX’s process claims to take it from brine water and there is most definitely an excess of brine water. what essentially matters is the lithium count inside of the brine. If this process truly works – and so far there is no substantial evidence to show otherwise, MGX could be one of the biggest players in the lithium industry!

MGX Minerals Inc. is basically active in advancing 3 distinct business lines: Petrolithium processing and lithium extraction, extraction of minerals from geothermal sources and wastewater handling. I am seeing MGX Minerals as a potential lithium producing/extracting company first and foremost.

Just like the Chinese Bamboo Tree that took time to develop a strong foundation, I believe MGX Minerals has been establishing its roots and is now poised to grow.

Disclaimer: I have been compensated by the company. I have participated in the previous private placement and the recent private placement. I am biased. Do you own thorough due diligence.

Happy Investing!

Dr. Kal Kotecha

 

  1. https://parentalwisdom.wordpress.com/2009/12/19/the-chinese-bamboo-story-%E2%80%93-a-lesson-in-patience/
  2. https://www.mgxminerals.com/about/sustainability.html
  3.  http://www.rockstone-research.com/index.php/en/news/3733-MGX-Minerals-Engineering-Partner-PurLucid-Awarded-C$8.2M-to-Manufacture-and-Deploy-Wastewater-Treatment-Systems-Central-to-MGXs-Petrolithium-Recovery-Process
  4. https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aXMG-2540752HYPERLINK “https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aXMG-2540752&symbol=XMG&region=C”&HYPERLINK “https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aXMG-2540752&symbol=XMG&region=C”symbol=XMGHYPERLINK “https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aXMG-2540752&symbol=XMG&region=C”&HYPERLINK “https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aXMG-2540752&symbol=XMG&region=C”region=C
  5. http://www.rockstone-research.com/index.php/en/news/3733-MGX-Minerals-Engineering-Partner-PurLucid-Awarded-C$8.2M-to-Manufacture-and-Deploy-Wastewater-Treatment-Systems-Central-to-MGXs-Petrolithium-Recovery-Process
  6. https://www.statista.com/statistics/452025/projected-total-demand-for-lithium-globally/
  7. https://www.bloomberg.com/graphics/2017-lithium-battery-future/
  8. https://www.mgxminerals.com/investors/news/2017/286-mgx-minerals-processes-high-magnesium-content-lithium-brine-of-76-000mg-l-mg-nears-completion-of-first-commercial-rapid-lithium-extraction-system.html
  9. http://www.rockstone-research.com/index.php/en/news/3733-MGX-Minerals-Engineering-Partner-PurLucid-Awarded-C$8.2M-to-Manufacture-and-Deploy-Wastewater-Treatment-Systems-Central-to-MGXs-Petrolithium-Recovery-Process
  10. http://rockstone-research.com/index.php/en/research-reports/3909-MGX-Revolutionizes-the-Lithium-World—Commissions-First-Rapid-Lithium-Extraction-System

Disclaimer

© 2010 Junior Gold Report and TechMoney360

Junior Gold Report and TechMoney360 Newsletter: Junior Gold Report’s and Tech Money 360’s Newsletter is published as a copyright publication of Junior Gold Report (JGR) and TechMoney360 (TM360).  No Guarantee as to Content:  Although JGR/TM360 attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. JGR/TM360, its associates, authors, and affiliates are not responsible for errors or omissions. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions as set out herein. 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Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report/TechMoney360 does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.

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