VANCOUVER, BRITISH COLUMBIA / May 4, 2017 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to report the Company has entered into an agreement for water handling and lithium extraction with a major oil and gas company.
The newly signed Demonstration Plant Agreement (the “Agreement”) outlines collaboration between MGX and a large U.S. based oil and gas operator (the “Operator”) with production sites throughout the United States. Two initial test sites have been chosen where waste disposal costs are currently in excess of $10 USD per barrel of wastewater. MGX aims to both significantly reduce disposal costs and extract valuable minerals.
The objective of the Agreement is to identify wastewater handling and other cost-cutting measures for the Operator to potentially establish viable, long-term alternatives to disposal wells. The framework of collaboration will center around the core cleantech process developed by MGX and its engineering partners, which separates minerals, heavy metals and hydrocarbons from wastewater brine pumped to the surface during oil and gas operations. As well, MGX will look to extract lithium and other valuable minerals to further purify water and generate mineral credits to offset water handling costs. MGX and the Operator are currently reviewing water handling and mineral extraction opportunities throughout the Operator's oil and gas fields, with the long-term goal of reducing or eliminating use of onsite disposal wells.
MGX and the Operator are jointly conducting initial analysis and laboratory testing to be followed by onsite demonstration.
The technical portions of this press release were prepared and reviewed by Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.
MGX may decide to advance its petrolithium projects into production without first establishing mineral resources supported by an independent technical report or completing a feasibility study. A production decision without the benefit of a technical report independently establishing mineral resources or reserves and any feasibility study demonstrating economic and technical viability creates increased uncertainty and heightens economic and technical risks of failure. Historically, such projects have a much higher risk of economic or technical failure.