Western Magnesium Corp. (TSX-V:WMG, OTCQB:MLYF) said it has signed a Memorandum of Understanding (MOU) with CCMA, LLC, whereby CCMA will be the exclusive sales agent for the US and for future expansion into the global market for magnesium metal and magnesium-based alloys produced by Western Magnesium.
The company said the agreement will combine its current commercial pilot and full commercial scale production, with CCMA utilizing its vast market knowledge to provide Western Magnesium with target products, and customers in different industries throughout the US.
“Working with CCMA will allow us to focus our efforts on our core business of producing magnesium metal and alloys, while CCMA distributes the metal production to end users,” Western Magnesium CEO Sam Ataya said in a statement.
READ: Western Magnesium closes first tranche of non-brokered private placement for gross proceeds of US$188,530.47
“Their experience with logistics, expertise in the magnesium markets, and established relationships with end users addresses this area for the company,” Ataya added.
Western Magnesium noted that CCMA will manage the sales, logistics, financing, and marketing of the company's products from the port of departure, all the way to the final consumers.
It said CCMA will begin to secure purchase orders from its established client base in various industries for the magnesium metal samples produced from the commercial pilot plant, which will include the securing of magnesium metal and alloy supply from Western Magnesium’s full-scale commercial facility starting with end users in the US, such as the automotive, aluminum, die-cast and aerospace industries, as well as eco-friendly technology companies.
Based in New York, CCMA has emerged as an independent, knowledgeable, and innovative trading house focused on metals, alloys, and other raw materials, according to the company.
Western Magnesium's goal is to be a low-cost producer of green, primary magnesium metal, a strategic commodity prized for its strength and lightweight. Unlike outdated and costly production processes, the company looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and energy costs relative to current methods and processes, while being environmentally friendly.
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