22 December 2024

Howe Street Reporter Title

Manganese X (MN.V) spins out Quebec graphite property


On December 23, 2020 Manganese X (MN.V) announced that it’s 100%-owned subsidiary, Graphano will spin-out the Lac Aux Bouleaux (LAB) graphite property, located in the province of Quebec, Canada.

Earlier this year, MN updated the NI 43-101 technical report on the LAB Graphite Property.

LAB Graphite Property Highlights:

  • Fourteen readily accessible mineral claims within 150 km of both Montreal and Ottawa in one contiguous block, totalling 738.12 hectares.
  • Assets lie within a geological environment in a region within which graphite is commonly found and has been commercially mined.
  • Historical (not conforming to NI 43-101 stadards) resource of 1,320,847 tons at 9% graphitic carbon.
  • Potential for further graphite exploration.
  • Good road access, with water and electricity available on site
  • Recently completed tests of the LAB Graphite Property produced three distinctly sized graphite concentrates
  • Overall graphite recovery rates of between 89.6% and 96.2% at grades of 91% to 88.3% graphitic carbon.

Two months ago, MN announced that its subsidiary Disruptive Battery Corp. “confirmed a Definitive Agreement is being finalized for a USA patented PureBiotics HVAC Delivery System for virus and bacteria mitigation”.

“We are diligently assembling all the moving pieces in our air quality management solution as current global circumstances call for hyper action in this regard,” stated Martin Kepman, CEO Manganese X, “Breathing virus free air in a contained environment has taken on greater meaning.”

Airborne transmission and is one way that infections like Covid-19, tuberculosis, measles, chicken pox and Covid-19 are processed are spread.

With 78 million confirmed cases of coronavirus globally, and 1.7 million dead, the HVAC technology is on point, but early MN investors are more focused on the Manganese opportunity at Battery Hill.

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Three weeks ago, MN announced completion of its current drill program on the Battery Hill project, located in New Brunswick Canada.

“Manganese is beginning to play a critical role in the evolution of new off-grid power storage systems, and cutting edge solar energy (storage) technologies,” wrote Equity Guru’s Greg Nolan on September 2, 2020.

Political winds south of the border should be of interest to Manganese X shareholders.

“President-elect Joe Biden calls climate change an existential threat to America’s environment, health, national security and economy,” recounts The Conversation, “Biden has pledged that on his first day in office he will bring the U.S. back into the Paris Climate Agreement.”

“The centerpiece of Joe Biden’s energy and climate proposals is a call for investing US$1.7 trillion over 10 years to promote a portfolio of clean energy technologies,” stated The Conversation.

At Battery Hill MN drilled 28 holes totalling 4509 meters.

“Climate change and the electrification of all things motorized will accelerate investment in renewable energy and lithium-ion battery production,” stated Martin Kepman, CEO of Manganese X, “The dynamics of supply and demand gives Manganese X a decided geographical advantage due to a lack of evolved competitors in our singular resource space”.

Manganese Demand Drivers:

  • A critical component of the cathode material in modern alkaline, lithium, and sodium batteries
  • Green/clean energy credentials – weening off fossil fuels.
  • Likely to remain the preferred energy material for the future.
  • Well suited for cathode mix in bulk energy storage & energy management.
  • Ideal for portable power
  • Key material for integrating solar and wind renewable energy.
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Kepman points out that “there is no manganese production in North America and there is 100% reliance on foreign imports. Manganese X is well positioned to capitalize on this geo gap in the North American supply chain and we are looking forward to continue our discussions for potential offtake agreements.”

Battery Hill Project Highlights

  • 55 claim units totaling 1,228 hectares
  • Located close to road, power and railway
  • Previous drilling programs totaling 5,188 meters in 25 holes have been completed.
  • Moody Hill sector hosts higher grades such as 13.45% Mn over 23.6 meters (SF17-16) from 32.4m downhole
  • Observed red/mixed mineralization indicates favorable metallurgical recovery of manganese (Mn)
  • Current drill program 28 holes totaling 4509 meters completed to upgrade our current classification of mineralization in Moody Hill sector
  • Mercator Geological Services retained to complete mineral resource estimate and NI 43-101 technical report.
  • Preliminary economic assessment (PEA) of the Battery Hill project to follow;
  • Environmental baseline study expected by year-end
  • New area of surface mineralization discovered in the Maple Hill occurrence area approximately 4.4 kilometers to the north of the Moody Hill. The average of five grab samples from the surface mineralization graded 16.10% Mn.

MN has retained a geological services contractor to complete a mineral resource estimate for the Battery Hill project, prepared in accordance with National Instrument 43-101 (NI 43-101) standards.

The mineral resource estimate and supporting NI 43-101 technical report will incorporate all previous exploration and drilling on the property as well as the results of the recently completed drill program.

Upon successful completion of the mineral resource estimate, MN plans to immediately begin work towards initiating a preliminary economic assessment (PEA) of the Battery Hill project.

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To close the LAB spinout, on December 22, 2020 Graphano completed a private placement – raising $2,721,707, at a price of $0.05 per Subscription Receipt (the Graphano Private Placement).

Graphano Private Placement

  • Each Unit comprised of one Graphano Share and one common share purchase warrant.
  • Each Warrant can be converted into a Graphano Share at an exercise price of $0.08
    Warrants valid for two years.
  • A 4-month hold on the shares and warrants

Graphano will become an independent public company, focused on the exploration of the LAB Graphite Property for graphite moving forward. Graphano is expected to raise its own money now, independent of MN.

When the deal is closed, Graphano will no longer be subsidiary of MN.

Meanwhile – according to the December 23, 2020 press release, “Manganese X “will continue to focus on the exploration and development of its Battery Hill Manganese and Peter Lake Copper-Nickel-Cobalt-Gold-Silver projects in New Brunswick and Quebec”.

By mid-morning, MN share price is up 16% on 700,000 shares traded.

  • Lukas Kane

Full Disclosure: Manganese X is an Equity Guru marketing client.

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