Alliance Magnesium Inc. (AMI) announced Tuesday that it has acquired substantially all of the shares of Metallurgie Magnola Inc. and MagnolaInc Mines and thus becomes the owner of the industrial and mining sites of Magnola, where it plans to deploy a manufacturing plant. production of 50,000 tonnes of magnesium by 2021, creating more than 350 direct jobs.
“It took five years of work, investment and achievement to reach this crucial and defining milestone in AMI’s development. The transaction marks the company’s clear intention to play a dominant role in global magnesium production, and confirms its position as one of the largest manufacturing projects in Canada, “says Joel Fournier, Chief Financial Officer. management at Alliance Magnesium.
The site acquired includes facilities and equipment from the former magnesium plant that a specialized firm recently estimated at more than $ 85 million. The property also contains a repository valued at more than 100 million tons of serpentines, the raw material used by AMI and containing nearly 25% magnesium.
Since May, Alliance Magnesium operates a pilot plant for the production of magnesium ingots. After activities that she describes as “successful”, the company is now in the technical and financial preparation phase of its commercial demonstration phase. The latter represents investments of over $ 100 million and will create 70 direct jobs.
It should be remembered that for the pilot plant, Alliance Magnesium received last May a $ 4.1 million support from the MRC des Sources Economic Diversification Fund. She announced at that time its intention to establish a commercial factory on the site of the former Magnola from 2019.