Western Magnesium Corporation announced it has signed a letter of intent (LOI) with The Shelly Company to supply it with high-quality dolomite at any location in the contiguous US to produce magnesium metal.
Shelly Co. is part of the building materials group CRH, which is the No. 1 aggregates producer in North America. Western Magnesium said this makes it an excellent partner for securing its ideal feed source for the future.
“We are confident that with a long-term supply of high-quality dolomite we will achieve Western Magnesium’s near and long-term magnesium metal production goals,” Executive Chairman Edward Lee said in a statement.
“Our continued progress toward establishing a reliable, sustainable, and clean supply of magnesium metal will support industry and the environment.”
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The LOI outlines the principal terms for a potential definitive agreement that will be developed between the two companies. A 20-ton dolomite sample provided by Shelly Co. to the company’s commercial pilot plant will provide all the necessary data to move forward to the eventual agreement, it added.
“Although we have the ability to mine our own supply of dolomite from the Tami Mosi site, it is advantageous to secure a supply chain across the United States that a great company such as Shelly Co. can provide to us while we maintain our focus on our technology buildout,” Western Magnesium CEO Sam Ataya said.
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Unlike outdated and costly production processes, Western Magnesium looks to use a continuous silicothermic process to produce magnesium, which significantly reduces labor and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.
Contact the author at stephen.gunnion@proactiveinvestors.com