Magnesium Alloy Corp. (MAC) holds a 100% interest in two exploration permits located in the Republic of Congo. Each permit covers 2,400 square kilometres and is underlain by magnesium salt deposits that are among the largest and cleanest of their kind in the world, exceeding 800 billion tonnes in indicated reserves.
MAC will evaluate and, if proven feasible, finance, and build a mining facility producing an initial 50,000 tonnes per year of magnesium metal. By-products will include potash, table salt, calcium chloride and chlorine. The company believes it will be the lowest-cost magnesium producer in the world, at US$1400 to $1600 a tonne production cost vs. approximately US$2500 a tonne market price.
The energy requirements for the facility can be supplied from existing Congolese natural gas and oil production and hydroelectric facilities, all of which are expected to be low cost.
As at December 31, 1997, there were 13.8 million shares outstanding and 17.4 million shares fully diluted. Cash position was $3.4 million.
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