VANCOUVER, BRITISH COLUMBIA – January 29, 2015 – MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG) is pleased to announce it has signed a technical services agreement with Electra Gold Ltd. (“Electra”) (TSX.V: ELT) to provide engineering support to Electra’s Apple Bay Alumina-Silica Quarry mining operation. The Apple Bay quarry is located near Port Hardy on Vancouver Island and has been in operation since 2004.
As part of the Company’s strategic alliance with Electra and Zimtu Capital Corp. (TSX.V: ZC) (see press release dated December 1, 2014), MGX will provide its quarry mining operations experience to Electra with the objective of increasing efficiency and growing production at Apple Bay. The scope of work to be provided by a MGX Senior Engineer includes:
- Critical analysis of original mine plan
- Verification of previous geologic mapping and drill assay data
- Review of mine layout and operational logistics
- Recommendations for improvement to production plan
Work is planned to commence on February 20, 2015. The purpose of MGX support will be to increase efficiency, profitability and production margin in anticipation of growing sales volumes to the cement industry. The quarry generates year-round cash flow and recorded sales of $1,200,000 in 2014.
MGX benefits from this services agreement by revenue and its equity stake in Electra. MGX Minerals owns, pending TSX approval, 2,000,000 shares of Electra Gold.