MGX Minerals Inc revealed that it has been in contact with major stakeholders and will initiate formal discussions in the second half of June regarding a silicon metal processing site in proximity to its Kootenay silicon properties in British Columbia.
The Vancouver-based resource and technology company said it is currently seeking a site with a minimum of 12 megawatt (MW) of power, which would be sufficient to power a 15-ton-per-day silicon metal furnace.
The current price of Silicon Metal Fujian (3303#) grade silicon metal is US$3,036 per ton, according to Metals.com.
READ: MGX Minerals says site scoping study is underway for its British Columbia silicon project as it updates on its return to trade
In addition, the company noted that it has begun the quotation process for the acquisition of magnesium metal processing equipment. A confidential study by Hatch Consulting (Canada) for MGX, has identified potentially profitable prices of magnesium metal based on prior exploration and engineering work at its Driftwood Magnesium deposit.
As a result, the company said it has issued a request for quotation for up to 16,000 tons per year metal processing equipment and “expects an understanding of capital requirements shortly.”
MGX Minerals is eyeing magnesium due to the significant increase in magnesium prices, which reached over US$11,000 per ton in September 2021 and advances in related special application of magnesium solid rocket fuels. By utilizing powdered magnesium as a solid fuel and carbon dioxide as an oxidant, the calculated specific impulse of powder rocket engines is higher than that of traditional propulsion systems.
Meanwhile, MGX is also reviewing solar panel component construction as part its Mine to Market (M2M) strategy.
Separately, the company said that it has completed its 2021 annual financials, and is finalizing audit items, and has begun preparing first and second quarter 2022 unaudited financial statements.
MGX is a diversified Canadian resource and technology company with interests in strategic metals, precious metals and advanced energy technologies.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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