BROSSARD, QC, June 22, 2016 /CNW Telbec/ - ALLIANCE MAGNESIUM INC. (AMI) is pleased to announce an agreement dated June 17, 2106 with Alternative Capital Group Inc. (ACG) for the subscription by way of a private placement of 38 million units of AMI at a price of $0.15 per unit, for a total amount of $5.7 million.
Each unit consists of one Class "A" share and one warrant. Each warrant entitles to subscribe to one Class "A" share of AMI at a price of $0.25 for a four year period from the closing date. This agreement adds to AMI's funding of over $6 million that was already signed with its public and institutional partners.
This investment enables AMI to deploy its business plan consisting in the relaunching of the activities of magnesium production from the serpentine on the Magnola Metallurgy site in the MRC des Sources, in the Eastern Townships in Québec, Canada, and whose engineering works and implementation began in 2015.
"We are very proud of our financial association with ACG" said Dr. Joël Fournier, President and CEO of AMI. "This new partner has recognized the economic potential of our company and the accuracy of our readings about the industry and related markets. This investment will contribute to demonstrate our ability to produce the greenest and the most efficient magnesium on the planet." added Dr. Fournier.
The AMI green technology is aimed at remediating tailings to produce high value minerals and metals including high quality magnesium destined to reduce weight in applications such as automobiles and aircrafts.
About Alliance Magnesium Inc.
Alliance Magnesium is a privately-owned Canadian company dedicated to the production of Magnesium metal and other high value minerals from serpentine rock. Alliance has developed a game changing technology and process giving it a cheaper and cleaner approach from current methods used worldwide by magnesium producers. Serpentine rock contains an average of 25% magnesium metal, a highly valuable opportunity for metal extraction. The new Alliance's process is the alternative in replacing the thermal process, largely used in China and one of the main CO2 emission source in the world. Alliance has elaborated a three-step development program in order to reach a 50,000 metric ton production of magnesium metal by 2018.
About Alternative Capital Group Inc.
ACG is a private investment banking boutique firm providing services to small and medium-sized businesses across all industries. In addition to providing advisory services in corporate finance and mergers & acquisitions, its institutional capital raising activities and distribution of investment products in the exempt market, ACG underwrites direct and co-lead investments. ACG is registered as an Exempt Market Dealer with the Autorité des Marchés Financiers (Quebec), the Ontario Securities Commission and the Alberta Securities Commission.
SOURCE Alliance Magnésium
For further information: For Alliance Magnesium Inc.: www.alliancemagnesium.com, Pierre Saint-Aubin, Senior Vice-President, Corporate Affairs, [email protected], 450.618.1658