Mineworx Corporate Update: Building Value with CleanTech Innovation
Dear Shareholders
2021 has been a year of transition and significant headway for Mineworx. The company was able to take test tube scale research and turn it into a fully functional 100L pilot plant in less than a year! This path has not been as smooth as we would have liked however during a period of global upheaval, the Mineworx team has adapted to the challenges and continued to move forward exceptionally well. While the twist and turns along the way, faced by almost all development projects, have cost us some time, it has allowed for significant enhancements to the processes and procedures that will prove invaluable during subsequent stages of the project.
Mineworx vs Enviroleach
We are continuing our legal undertakings with Enviroleach Technologies and currently have little to further report on. Our position remains unchanged, and we believe will be validated as the evidence is reviewed. We will continue to pursue actions in this matter that are in the best interest of our shareholders.
Development of Catalytic Converter Project
We commend our development team in Vancouver for having done an extraordinary job on not only our catalytic converter project, but with other unrelated projects as well. As we continue to advance these various undertakings, we will share relevant updates as they become available.
We owe a debt of gratitude to the dedication and efforts of our team. In a little over a year, we have gone from the R&D stages to the onset of a pre-commercial run of our system.
Essentially, Mineworx was able to transition from the laboratory to designing the pilot plant, to the in-house fabrication of the pilot plant, to its successful operation. This development should be considered a great feat for what has been accomplished in such a short period of time.
After the successful completion of the first three testing stages in Vancouver, the pilot plant was transported to Tennessee in October where it has been reassembled and awaits the completion of Stage 4, the optimization phase of the testing plan.
Supply Chain Disruptions
Supply chain issues, caused by the unprecedented events the world has experienced over the past 18 months have affected most businesses and Mineworx is no different in this respect. These supply chain issues didn’t just affect timelines, but also compromised quality control standards. While some of the components we received from China were excellent, other pieces of equipment from the Chinese manufacturers were damaged or compromised and needed to be repaired in Vancouver. The company opted to repair the components instead of seeking a replacement due to the significant delays that would be experienced in returning the damaged components. The inhouse repairs allowed us to complete the testing required in Vancouver to confirm the efficacy of the system.
Stage 4 Testing
Reassembly in Tennessee revealed that some of our repaired components had been compromised during the initial testing protocols in Vancouver and would need to be replaced. The team was prepared for this possibility and had been working on sourcing the replacement components. These items were locally sourced and are currently being installed in the 100L pilot plant which will allow for optimization testing (“Stage 4 Testing”) to proceed.
We thank all our shareholders who have been waiting patiently for additional test results from Stage 4 testing. In total we are approximately 3-4 months behind our scheduled timeline, but we are working to the best of our abilities to achieve our milestones and communicate these figures to you promptly. In the meantime, please be assured that the company has continued to make progress and expects to be able to communicate the success of the optimization testing phase in the very near future.
Commercial Scale Plant
Mineworx has been working on the design of the commercial scale plant and is utilizing the optimization testing to confirm engineering plans. We are planning for the commercial scale plant to process 10 tonnes per day of diesel catalytic converter feedstock. Our team has been working diligently to source local supplies for most of the required components and are planning to avoid the use of Chinese manufacturers for the commercial scale plant.
PGM Renewal – A Market Leader
Together with our partners, Davis Recycling, we have agreed to create a new corporation to commercialize the catalytic converter opportunity. PGM Renewal LLC is owed 55% by Mineworx and 45% by Davis. Davis has invested in additional equipment, which will increase the grinding and separation capacity to provide a supply of feedstock more than the initial commercial plant’s requirements. Along with this Davis has been working on all aspects of the supply chain continuum to ensure availability of feedstock for our future growth requirements.
PGM Renewal is now positioned to be a market leader in the catalytic converter recycling market. The completed commercial system will offer an environmentally friendly alternative to smelters for the recovery of precious metals from catalytic converters. In the diesel converter market, the PGM Renewal opportunity will be the only viable commercial option as the smelters are increasingly reluctant to accept diesel catalytic converters due to processing related issues.
Legacy Mining Assets
The theme of transition also applies our Spanish mining assets. During 2021, Mineworx has been undergoing a strategic review of its mining assets to determine how to deliver the best value to the shareholders.
The first stage of value maximization was to commence a development drilling program on the Cehegin iron ore project that would allow for regulatory compliant reporting and additional resource verification. The physical drilling program is just over 90% complete but the progress has been slower than anticipated due to equipment and personnel shortages in Spain created by increased mining activity in the region. Core data is being sent to ALS labs for analysis and the company expects to receive results shortly. This data analysis will be used to update and validate the project’s resource estimates. Efforts to obtain the necessary approvals for a small-scale production facility are ongoing.
The strategic review also determined that shareholders could be better served by splitting the company into a traditional mining/exploration company and an eco-friendly processing technology company. To facilitate this split, Mineworx is reviewing opportunities to create a stand-alone publicly traded company. This new company would hold the mining assets and have a structure that would allow for the continued development of current and future mining assets. To further this strategy, we are currently sourcing an appropriate partner that can manage the future development as well as provide sufficient value to the Mineworx shareholders.
If the approach is successful, it is anticipated that current Mineworx shareholders will receive shares in the newly created public entity. These shares will be distributed as a tax-free return of capital dividend. As we get closer to finalizing the terms and conditions of the transaction, we will communicate the final terms to our shareholders. To implement the dividend structure, we will need to have shareholder approval at a Special Shareholder Meeting.
The New Mineworx
We will be rebranding Mineworx as an eco-friendly, cleantech processing technology company that will be playing a leading role in the extraction and recovery of precious metals from sectors other than traditional mining. As part of the rebranding strategy a new name will be selected to better reflect this transition. We invite you to continue being part of our story as we move towards full commercialization of a green, eco-friendly, and efficient process of extracting precious metals from diesel catalytic converters.
We are acutely aware of how our timeline delays have affected you, our shareholders. Please be assured that we are doing everything possible to minimize these. We are moving forward expeditiously but are aware that cutting corners to save time is not always the optimum strategy. Our objective is to finalize the engineering and design of our commercial plant by year end and have it operational by the end of the second quarter of 2022.
Thank you for continuing to be part of our journey and we anticipate an exciting 2022 as we evolve towards becoming a recognized leader in the field of CleanTech.
Sincerely,
Greg Pendura
President & CEO Mineworx
About Mineworx
Mineworx is positioned for growth in the catalytic converter and mining sectors through the development and commercialization of its environmentally friendly processing technologies for the recovery of precious metals. Initial focus is the extraction of platinum and palladium from diesel catalytic converters with its partner Davis Recycling. The Company is also furthering the development of its legacy iron ore concession which it holds a 100% interest in South-Eastern Spain. For further information go to www.mineworx.net
Neither the 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.
For further information contact:
MINEWORX TECHNOLOGIES LTD.
Greg Pendura
President & CEO
780 800-0726
