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Cranbrook mill site purchase agreement entered
MGX Minerals Inc. (MGX) has announced the company has entered into a Definitive Agreement with Tembec to acquire the Cranbrook mill site in Cranbrook, for $3.7 million.
The Cranbrook mill complex spans 38-hectares (98 acres) located within the Cranbrook industrial park. Major infrastructure including buildings and a wood processing plant remain on site. The site is a large fully serviced industrial location with natural gas, water, power and rail access.
The company plans to use the location for the processing of industrial minerals including ore from the company’s Driftwood Creek magnesium deposit, MGX announced today.
“This is exciting news for the city and surrounding region,” commented Cranbrook Mayor Lee Pratt. “MGX Minerals will be a great fit in Cranbrook helping diversify our industrial sector, one of our key economic priorities, and creating new employment opportunities. There are strong synergies between MGX and the community, and I look forward to working with MGX as they advance their development.”
The company is in discussions regarding mortgage and equity financing of the land purchase as well as leasing of unused portions of land and sale of unused equipment. MGX anticipates closing of the transaction will occur on or before December 15. Closing of the transaction is subject to obtaining adequate financing, satisfactory completion of environmental review and other customary conditions, the company noted, adding, “There can be no assurance that the transaction will be consummated in whole or in part.”
MGX Minerals is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in Western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures.
The company’s flagship project is the Driftwood Creek magnesium project in the East Kootenay. The long-term strategic business objectives of the company include constructing a quarry mine and processing plant to produce magnesium oxide at Driftwood Creek.
The Driftwood Creek project is currently under permitting review for granting of a mining lease and applications for associated operating permits are in various stages of preparation. MGX owns the majority of significant magnesite properties in B.C. as reported by the British Columbia Geological Service.
For more information please visit the company’s website at www.mgxminerals.com.
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