MGX Minerals Announces Continuous Operations at Oilsands Wastewater Treatment Project with PurLucid

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MGX Minerals Announces Continuous Operations at Oilsands Wastewater Treatment Project with PurLucid

MGX Minerals Inc. annouonced that engineering partner PurLucid Treatment Solutions has reported commissioning of its first high salinity brine treatment system.

The system was extensively tested in early 2019 at an independent research facility on an extensive array of wastewaters from the heavy oil industry in Alberta and proved its treatment capabilities for three potential industry clients. $4.6M in costs was recouped from a combination of consortium partner contributions over the completion of Milestone 2 of the three-milestone Project.

The Project has entered Milestone 3 with the system subsequently installed and commissioned at a mid-sized producer location in Northern Alberta, a consortium partner where a commercial contract has already been negotiated for activation following performance acceptance during Milestone 3. Commercial scale continuous operations commenced July 25, 2019. Once Milestone 3 is completed and the Project transitions to the commercial contract, expected revenue is $1.8M with an estimated net profit of $270,000 over a three-year contract. These figures are inclusive of equipment payback, which remains the property of Purlucid throughout the life of the contract and will be redeployed or contract renewed at no additional capital cost investment.

Additionally, PTS has completed its first high pressure system and is in the process of moving it to the consortium partner site. A commercial contract has been signed with the consortium partner that, similar to the first unit, will generate revenue of approximately $2M with an estimated net profit of $300,000 over a three-year contract once it transitions to commercial operations in early 2020.

Engineering for a third and larger system will be completed in fall 2019 for installation at a third consortium member site in early 2020. Under similar arrangements, it is expected to generate $3.2M with an estimated net profit of $480,000 over a three-year contract upon successful completion of Milestone 3 in Q2, 2020.

The success of our technologies during Milestone 2 has opened business development channels and PTS is now pursuing a number of larger opportunities outside the heavy oil sectors in mining and geothermal water treatment.

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