• Nevado to have an exclusive licence to use Neomet's patent-pending acid regeneration technology and leaching process for the TiO2 market
  • Nevado/Neomet 70/30 joint venture will combine Nevado's La Blache titanium-vanadium-iron property with Neomet's processing technology, making Nevado a more integrated mining company
  • The exclusive licence will cover Quebec, Ontario, Newfoundland and Labrador, as well as other regions of North America as may be agreed by the JV parties
  • Richard Faucher, an experienced senior mining executive, will manage the joint venture

MONTREAL, Jan. 20, 2015 /CNW Telbec/ - NEVADO RESOURCES CORPORATION (TSXV: VDO) (FSE: NSV) ("Nevado" or the "Corporation") is pleased to announce that it has signed a final agreement with Neomet Technologies Inc. ("Neomet") to form a joint venture on the following basis: Nevado - 70%, Neomet - 30%.

The purpose of the joint venture is to develop Nevado's wholly-owned La Blache property, or other similar properties to be held by the joint venture. The joint venture will use Neomet's pilot plant to demonstrate the process at a much larger scale based on the flowsheet designed at Neomet's mini-plant, and will then conduct a feasibility study on the property.

The joint venture will have the exclusive right to use Neomet's patent-pending technology to recover metals from similar ores in Quebec, Ontario, Newfoundland and Labrador, as well as other regions of North America as may be agreed from time to time by the joint venture parties.

Michael Curtis, President and CEO of Nevado, said: "This is a significant agreement for Nevado, as it will enable us to process our minerals at a larger scale. Neomet's technology has, so far, proved to be the best process technology for our minerals. As disclosed in our February 9, 2012 news release, the mini-plant testing of a 150-kg sample from our La Blache property generated over 99.9%-pure titanium dioxide (TiO2) and vanadium (AMV, V2O5, and V2O3) from a continuous process, as well as pure hematite (Fe2O3). The planned scale-up step will take place at Neomet's pilot plant, which is more than one hundred times the size of the mini-plant, and will test a 20-ton bulk sample at the rate of one ton per day using the same continuous process. We will now focus our efforts on completing the necessary financing to start the pilot plant testing and finish assembling our scientific team for the project." 

Joint venture management

Richard Faucher, Joint Venture Manager, reporting to both parties

Richard Faucher is a Professional Engineer trained in metallurgical engineering. Mr. Faucher has extensive experience in the management of large mining and metallurgical projects and has held senior management positions at a number of major mining companies, including President and Chief Executive Officer of Canadian Royalties Inc., President of Niocan Inc., Vice President of Brunswick Mining & Smelting for Noranda Inc.; President and General Manager of Falconbridge Dominicana, and President and COO of Princeton Mining Corp. during the construction of the Huckleberry project in British Columbia. Mr. Faucher is a certified member of the Institute of Corporate Directors (ICD) and a director of several companies, including Aurizon Mines Ltd. (sold to Hecla Mining in 2013), Robex Gold and Silvermet Inc.

Joint venture funding

Pilot plant stage: Nevado will solely raise up to $500,000 to fund pilot plant testing of the La Blache minerals, and up to $1 million to carry out a Preliminary Economic Assessment (PEA), initiate Impact Benefit Agreement discussions with the Innu Nation, carry out environmental baseline studies and drill to convert sufficient resources to the Measured and Indicated category. Subject to regulatory approval, Neomet will have the right to acquire, in any private placement Nevado may do, up to 10% of Nevado's equity.

Engineering feasibility decision stage: Nevado will solely raise up to an additional $10 million to carry out an engineering feasibility study that meets banking consortium requirements. Subject to regulatory approval, Neomet will be entitled to acquire, in any private placement Nevado may do, the number of shares required to maintain its 10% equity participation in Nevado.

Production decision stage: Nevado and Neomet will be responsible for financing their proportionate shares (70/30) of project construction and commissioning.

The joint venture agreement is subject to TSX approval.

About Neomet Technologies

Neomet Technologies is a private company that develops, owns and markets specialized and proven high-performance proprietary metal processes and technologies. The company owns a comprehensive portfolio of process and industrial design patents, and revolutionary eco-friendly economical commercially sustainable systems for recovering high-grade value metals from crushed ore to compound concentrates and refractory difficult to treat ore deposits.

About Nevado Resources

Nevado Resources is a junior strategic metals company with properties located in Canada. The Corporation owns a 100% interest in the La Blache titanium-vanadium-iron property in Northern Quebec, the Fermont graphite property near Focus Graphite's Lac Knife property, and the Bozema and Steel River zinc-copper-silver-gold properties in Ontario's Schreiber-Hemlo camp.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statements.

 

SOURCE Nevado Resources Corporation

Copyright 2015 Canada NewsWire

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