Montreal, Quebec--(Newsfile Corp. - December 20, 2018) - Manganese X Energy Corp. (TSXV: MN) (FSE: 9SC2) (TRADEGATE: 9SC2) (OTC Pink: SNCGF )(the "Company") is pleased to announce that 2018 was again a year of significant growth for the Company with advancements at its Battery Hill manganese property; the acquisition of its Peter Lake copper-nickel-cobalt property; as well as strategic corporate financing and the purchase of 15% in Mountain Springs Oil and Gas Limited (MSOG) with the opportunity of obtaining an additional 10% of MSOG upon Board approval.
The Company anticipates potential cash flow during 2019 from dividends generated by its interest in MSOG, which would enable Manganese X the opportunity through the anticipated MSOG dividends to finance the Peter Lake property during 2019 and beyond. In addition, this cash flow will also allow Manganese X the ability to further advance the Battery Hill project, while advancing its strategy of supplying value added manganese materials to the fast-growing North American lithium ion battery market for electric vehicles (EV) and other alternative energy markets.
Manganese X has recently been informed by MSOG that an additional oil and gas acquisition is being pursued and is in near completion. MSOG also reported that negotiations with Schlumberger are advanced and at the legal stage. Once completed, this deal would implement their innovative Schlumberger Heal System to potentially expand production and revenues from existing production wells.
Martin Kepman, CEO of Manganese X states, "Due to the volatile fluctuations of the world oil and gas commodity markets and prices, it has taken MSOG longer than anticipated to complete its first acquisition. It is our hope that the oil and gas property acquisition will be completed in early 2019."
Commodity price update: Manganese has increased 16.7% during the year and has performed very well among the minor metals sector.
Highlights of 2018 Activities
- Completed two non-brokered private placement financings for combined gross proceeds of $992,750 at 15 and 20 cents per share.
- Negotiated and closed the purchase of 15% in MSOG for the sum of $750,000. An additional 10% of MSOG can be acquired for $500,000 with Board approval. A contract is anticipated with Schlumberger Ltd., an oil and gas services company, to utilize its newly developed Heal System technology that has been shown to significantly increase oil and gas yields.
- Acquired a 100% interest in the flagship Battery Hill manganese property located in the top-tier global mining jurisdiction of New Brunswick. The property includes the historical Moody Hill, Sharp Farm, Iron Ore Hill and Maple Hill manganese-iron zones and is subject to a 3% Gross Metal Royalty on production.
- Current focus at Battery Hill is on the metallurgical aspects and recovery processes that would result in a high purity product. Detailed mineralogical and preliminary metallurgical leach extraction testwork, spread over two research establishments, proved to be extremely positive. A research project is ongoing in conjunction with the National Research Council of Canada titled "The potential of ore upgrading and purification techniques to produce battery-grade material (high purity: 99.999 per cent)". The aim of this project is to determine to what extent, ore from the Battery Hill project, could be upgraded and to explore the potential to generate a high-purity manganese product suitable for the battery industry.
- Signed a property option agreement to earn a 100% interest in the Peter Lake copper-nickel-cobalt property located in the Sainte-Anne du Lac area of Quebec. Previous grab sampling returned values ranging from 0.4 to 22.8% copper, 0.14 to 0.73% nickel and 0.05 to 0.266% cobalt. The mineralization has been traced intermittently on surface for more than 2 kilometers. The property is virtually unexplored, with only 2 shallow diamond drill holes being completed in 2002. Manganese X has completed a multi-faceted exploration program which will lead to a significant drilling program during 2019.
Manganese X Energy 2019 Strategies and Goals
The Company's strategy is to leverage the potential cash flow from dividends generated by its interest in MSOG's oil and gas production wells, to advance the Battery Hill manganese and Peter Lake copper-nickel-cobalt projects, as well as other advanced opportunities identified. Some specific goals for 2019 are listed below:
- Increase ownership in MSOG and thus potential future cash flow dividends by purchasing an additional 10% interest upon MSOG completing its current acquisitions and with Manganese X Board approval
- Continue to pursue the development of its Battery Hill manganese property and to develop an innovative, cost effective process to produce high purity manganese materials to the fast-growing North American lithium ion battery market
- Advance and prioritize exploration targets at Peter Lake in preparation for a significant diamond drilling program to evaluate this highly prospective and virtually unexplored project
- Pursue potential negotiations with a multi-national Company to explore future development and sales of our value-added manganese materials to the North American markets
- Continue with OTC application in preparation to become eligible for the depository and book-entry services of The Depository Trust Company (DTC).
About Manganese X Energy
Manganese X Energy's mission is to acquire and advance high potential manganese prospects located in North America with the intent of supplying value added materials to the lithium ion battery and other alternative energy industries as well as the steel industry. In addition our company is striving to achieve new methodologies emanating from environmentally friendly green/zero emissions, while processing manganese at a lower competitive cost.
For more information, visit the website at www.manganesexenergycorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and Director
Cautionary Note Regarding Forward-Looking Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" including statements with respect to the future exploration performance of the Company. This forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company, expressed or implied by such forward-looking statements. These risks, as well as others, are disclosed within the Company's filing on SEDAR, which investors are encouraged to review prior to any transaction involving the securities of the Company. Forward-looking information contained herein is provided as of the date of this news release and the Company disclaims any obligation, other than as required by law, to update any forward-looking information for any reason. There can be no assurance that forward-looking information will prove to be accurate and the reader is cautioned not to place undue reliance on such forward-looking information.