CVMR initiated a pilot program in March 2017 with a 260-gram concentrate of mineralized material from Samapleu. The concentrate graded 3.01% copper, 2.30% nickel and 25.90% iron. Preliminary results indicate a 91% and 92% recovery rate for the nickel and the iron, respectively.
"The partnership with CVMR will enable Sama to complete technical studies for a proposed open pit operation at Samapleu with higher returns compared to a simple flotation process," said Dr. Marc-Antoine Audet, P.Geo, President and Chief Executive Officer, Sama Resources. "We expect to complete the Samapleu feasibility study by year-end 2017."
"The geological formation of the Samapleu deposit is ideally suited to CVMR's nickel and iron powder production technology. The manufacture of metal components and additives has undergone a paradigm shift in the past ten years as 3D printing and metal injection moulding are replacing many other manufacturing methods. Accordingly, the demand for nickel and iron powders is increasing more rapidly than most optimistic forecasts. Sama Resources is well positioned to take advantage of this major shift in the manufacturing industry," said Kamran M. Khozan, Chairman and Chief Executive Officer, CVMR ( http://www.cvmr.ca).
The Licensor authorizes Sama to use CVMR's patents and technology to operate nickel and iron powder manufacturing plants in the Ivory Coast (the "Plants"), to be built, commissioned and delivered on a turn-key basis by CVMR, following a positive feasibility study. The Plants will be dedicated to the production of metal powders used in a variety of products and manufacturing processes, including: 3D printing (additive manufacturing), aerospace and automotive parts manufacturing, medical instruments, computer and electronic parts, super alloys, sophisticated net shapes for use in the defence and space industries, metal injection molding (MIM), anti-seize lubricants, chemicals and catalysts, etc.
In consideration of the License, Sama has agreed to pay CVMR CA$5,000,000 either in cash or, subject to approval from the TSX Venture Exchange (the "Exchange"), through the issuance of an equivalent value of common shares of Sama within 90 days of the granting of the mining license. Share price will be based on the average closing price of those shares on the Exchange for each day during the three months of trading prior to issuance. In addition, CVMR will receive a royalty equal to 15% of the sale price of metal powders produced by the Plants in excess of the London Metal Exchange price of the elements contained in such powders.
Sama and CVMR will negotiate a project construction agreement with respect to the Plants.
Sama has also retained CVMR to perform a detailed technical study to confirm the commercial viability of producing nickel and iron powders from nickel-iron concentrate obtained from the flotation of the mineralized material of the Samapleu deposits. Sama will apply to the Department of Mines in Ivory Coast to transform the current exploration permit #123 ("PR123") into a mining license.
A Proven Process with In-Demand Products
Global nickel carbonyl powder production capacity is approximately 37,000 metric tons per year, with the main producers being Vale (Inco) in Canada and Wales, Jilin Jien and Jinchuan in China and Norilsk in Russia. Iron powder production capacity is reported to be around 29,000 metric tons per year, with BASF of Germany being the largest manufacturer followed by Ashland in USA, Sintez in Russia, CVMR in Canada and Jilin Jien in China.
About Sama Resources Inc.
Sama is a Canadian-based mineral exploration and development company with projects in West Africa. For more information about Sama, please visit Sama's website at http://www.samaresources.com.
About CVMR Corporation
CVMR Corporation is a privately held multinational, multi-disciplinary, organization operating in four continents, with offices in Canada, US, UAE and Turkey, and representative offices in Indonesia, Australia, and a number of Latin American countries. The company specializes in manufacture of metal powders, nano-powders, alloys, super alloys and net shapes based on its proprietary vapour metallurgy. It designs mineral processing plants, constructs and commissions the plants on behalf of its clients. It conducts metallurgical tests and piloting of various minerals.
CVMR's vapour metallurgy processes and technologies have been developed over 20 years and are continuously upgraded and improved as new complementary technologies evolve. CVMR's refining/manufacturing processes are capable of producing pure metal products with very high degree of purity.
Such high-purity metal was used by CVMR to produce nickel tubes for the Sudbury Neutrino Observatory (SNO), through the Canadian Department of Defense. These tubes are the only nickel tubes with minimum radioactive emission needed to be used for the detection and measurement of neutrinos being emitted from the sun.
CVMR Corporation was one of the very few privately held corporations to have contributed to this scientifically valuable project in partnership with the governments of Canada, US and UK. The SNO project was the precursor to the European Organization for Nuclear Research, at CERN, in Switzerland, which is probing the fundamental structure of the universe.
Readers are invited to visit CVMR's website at: http://www.cvmr.ca.
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.
The technical information in this release has been reviewed and approved by Dr. Marc-Antoine Audet, P.Geo and President and CEO of Sama, and a 'qualified person', as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Forward-Looking Statements
Certain statements in this press release may be forward-looking. Such statements include those with respect to the constructions of the Plants and the anticipated benefits of the Licensor to Sama. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Such assumptions, which may prove incorrect, include the following: (i) the parties will successfully negotiate a project construction agreement, (ii) the construction of the Plants will not encounter any legal, technical or other obstacle that will delay or otherwise make that construction unfeasible, (iii) Sama will obtain any required TSXV approval for the issuance of common shares to CVMR®, (iv) the patents licensed to Sama are in good standing and will remain so, (v) CVMR® will at no time be unable or unwilling to perform its contractual obligations under the License or any other agreement entered into between the parties, (vi) the technology licensed to Sama will produce the desired results and perform as anticipated, and (vii) the price of nickel will remain sufficiently high and the costs of advancing the Company's projects sufficiently low so as to permit Sama to implement its business plans in a profitable manner. Factors that could cause actual results to differ materially from expectations include (i) CVMR's inability or unwillingness to fulfill its contractual obligations, in whole or in part, (ii) the failure of the construction of the Plants, for technical, legal, logistical, labour-relations or other reasons, (iii) deficiencies arising in the patents licensed to Sama under the License, (iv) the licensed technology failing to perform as anticipated for whatever reason, (v) the Company's inability to obtain any necessary TSXV approval for the issuance of shares to CVMR®, (vi) a decrease in the price of nickel below what is necessary to sustain the Company's operations, (vii) an increase in the Company's operating costs above what is necessary to sustain its operations, (viii) accidents, labour disputes or the materialization of similar risks, (ix) a deterioration in capital market conditions that prevents the Company from raising the funds it requires on a timely basis and (x) generally, the Company's inability to develop and implement a successful business plan for any reason.
A description of other risks affecting Sama's business and activities appears under the heading "Risks and Uncertainties" on pages 31 to 33 of Sama's 2016 annual management's discussion and analysis, which is available on SEDAR at
www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Sama will derive therefrom. In particular, no assurance can be given as to the future financial performance of Sama. Sama disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event, except as required under applicable law. The reader is warned against undue reliance on these forward-looking statements.
