Business
Blue Lagoon Enters into Definitive Agreement With Quebec Based Mag One Operations to Form Joint Venture
VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / January 7, 2020 / Blue Lagoon Resources Inc. ("Blue Lagoon" or "Company") (CSE:BLLG; FSE:7BL; OTC:BLAGF) is pleased t
About this update from Blue Lagoon Resources Inc
[{"type":"text","content":" VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / January 7, 2020 / Blue Lagoon Resources Inc. (\"Blue Lagoon\" or \"Company\") (CSE:BLLG; FSE:7BL; OTC:BLAGF) is pleased to announce that further to its news release dated November 26, 2019, the Company and Mag One Products Inc. (\"MOPI\") and its wholly owned subsidiary, Mag One Operations Inc. (\"Mag One\") have signed a definitive earn-in and operating agreement (the \"Agreement\") dated January 6, 2020. Pursuant to the Agreement, the Company may acquire up to a 70% equity interest in Mag One by purchasing up to $5.25 million of shares of Mag One, a wholly owned subsidiary of MOPI (the \"Transaction\"). Mag One is a private company existing under the laws of Quebec that has an exclusive license with Tech Magnesium and is currently testing its proprietary process for the production of pure magnesium metal (99.9% Mg) from mine tailings. Funds invested by Blue Lagoon would allow Mag One to rapidly complete this phase of test work and move towards larger scale pilot plant demonstration testing. Mag One has already done extensive pilot scale testing of its patent pending high purity magnesium oxide (MgO) and amorphous silica (SiO2) process from these tailings and will use the funds provided by Blue Lagoon to complete this work and begin engineering efforts towards a commercial scale demonstration facility. Pursuant to the Agreement, Blue Lagoon may purchase a 50% interest in Mag One by making cash investments in Mag One as follows: $100,000 upon the initial closing (the \"Closing Date\") including stock exchange filings; $300,000 within 3 months of the Closing Date; $750,000 within 8 months of the Closing Date; $1.1 million within 12 months of the Closing Date; and $1.5 million within 18 months of the Closing Date. Blue Lagoon may acquire an additional 20% interest in Mag One, subject to MOPI obtaining shareholder approval, by making an additional payment of $1.5 million within 24 months of the Closing Date. Closing of the Transaction is subject to various conditions, including completion of due diligence investigations, receipt of all necessary corporate and regulatory approvals, and compliance with stock exchange requirements. Upon the Closing Date, the board of Mag One will be reconstituted to include two directors nominated by Mag One and one director nominated by Blue Lagoon. Blue La...