Issue link: http://resourceworld.uberflip.com/i/882975
30 www.resourceworld.com O C T O B E R / N O V E M B E R 2 0 1 7 M GX Minerals Inc. [XMG-CSE;MGXMF-OTC; 1MG-FSE] has taken a unique approach and stra- tegically acquired a number of projects that are not considered mainstream like precious or base metals. As I've men- tioned in previous articles, I like companies that can identify and acquire a profitable niche in the market. MGX has been actively advancing petrolithium, magnesium, silicon and rare earth element (REE) assets that have the potential to be very profitable. The market is currently focused on the com- pany's petrolithium project. Petrolithium refers to a new approach that focuses on con- centrating lithium and other minerals from abundantly available wastewater (brine) that accompanies oil and gas production. Wastewater brine is plentiful, and is currently treated as a waste product that is either injected deep underground or stored in giant tanks after it is separated from oil. MGX and its engineer- ing partner utilize exclusively licensed nanoflotation technology to provide oilfield operators with wastewater handling solutions. This patented technology separates heavy metals and hydrocar- bons from brine, purifying wastewater and creating a steady flow of brine feedstock for MGX's rapid recovery process. According to the think-tank research group, Global Water Intelligence, the wastewater treatment industry is expected to grow into a $45 billion market by 2025. Oil and gas producers are increasingly looking for opportunities to reduce wastewater handling costs. Add that to the well-known growing demand for lithium battery products and, voila, you have a profitable niche that needs to be filled. MGX Minerals now controls over 2 million acres of lithium brine mineral permits across North America covering, in many areas, lithium brine correlated with existing oil and gas operations. The company recently announced that it has processed waste- water and lithium brine from eight North American oil and gas sites at its pilot plant. Independent assays are pending to verify lithium and other mineral recoveries as well as clean water output profile to determine environmental and water handling benefit. This data will provide the basis for the engineering of these projects and final commercial arrangement. In addition, MGX has entered testing and analyses agreements with major oil companies across North America and has completed testing at more than 25 locations providing an initial pipeline of mineral and water han- dling projects and sites for deployment of 1,200 cubic metre of water per day systems (7,500 US barrels per day). The first 120 cubic metre per day system is near completion and the first 1,200 cubic metre skid-mounted mobile system is cur- rently being manufactured with mass production scheduled for the first quarter of 2018. The bottom line is that MGX Minerals' petrolithium brine recov- ery process can clean wastewater brine while separating valuable metals. It can utilize existing oil and gas infrastructure, which sim- plifies permitting and lowers capital costs, and the treatment plants are mobile and scalable. MGX Minerals currently has a market capitalization of $63 mil- lion with 69.2 million shares outstanding and 95.9 million shares on a fully diluted basis. Insiders own 25% of the stock. n Shayne Nyquvest is an Investment Advisor with Mackie Research Capital Corporation (MRCC). This article was prepared, in part, under contract by Thomas Schuster. The opinions, estimates and projec- tions herein are those of the author and may not reflect that of MRCC. The information and opinions contained herein have been compiled and derived from sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy or com- pleteness. The issuer(s) mentioned in this article may not be suitable for all investors. Please consult an investment professional for advice regarding your particular circumstance. Neither the author nor MRCC accepts liability whatsoever for any loss arising from any use of this article or its contents. Information may be available to MRCC which is not reflected herein. This article is not to be construed as an offer to sell or a solicitation for an offer to buy any securities. The information contained in this article is not intended to constitute a research report. Shayne Nyquvest is a beneficial owner of the company highlighted in this article. Broker's Picks by Shayne Nyquvest MGX Minerals – fueling the new energy economy