General Magnesium signs deal to process ore – by Ron Grech (Timmins Daily Press – November 16, 2015)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – William Quesnel says it has been a slow 15-year process completing the geological work and getting government approvals in order for him to start up a talc magnesium mine in Whitney Township.

And now like tumbling dominoes, everything seems to be quickly coming into place for the company to begin production next year.

Two weeks ago, Quesnel, chairman and chief executive officer of General Magnesium, announced the signing of a $4.9 billion deal with Hunter Douglas Metals, providing the mine with a buyer for 100% of the magnesium the mine produces over the next 15 years.

This week, Quesnel announced the signing of two more agreements — one with Abbey Gold to process the ore from the Whitney talc magnesite deposit; the other with Haywood Securities, a financing house that will be taking General Magnesium from a privately financed company to one that is publicly sold on the stock market.

No financial details of either deal were released.

“As part of this Letter of Engagement, they’re raising money for us. I can’t disclose the details of it just yet, but what it does is get us to the first stage of commercial production,” Quesnel said. “And the way we do that is with the toll processing agreement (with Abbey Gold).”

He said there will need to be a “retrofit” of that plant to process talc-magnesium. The plant is located in Shaw Township.

“We will be able to process our ore at that facility which is located just 10 kilometres south of us (the Whitney deposit),” said Quesnel. “We will be producing a talc concentrate at that plant.
“So by June of next year, we’ll be in positive cash flow. That is the significance of how this all ties in.

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