So MGX Minerals have made use of their listed subsidiary...

So MGX Minerals have made use of their listed subsidiary Margaret Lake Diamonds to be the vehicle for their joint venture agreement with KORID Energy to build a factory to manufacture V-KOR vanadium redox flow batteries. So the previously discovered announcements from MGX in September 2019 relate directly to this transaction.

MGX believe the MLD related actions, share consolidation and capital raising should be able to be completed by mid April 2020 and expect to break ground on building phase one of the battery factory by mid year 2021. They expect demand will result in factory expansion but at this stage it is unknown if and when demand would require that.

MGX may make use of future vanadium production from Daejon to supply the electrolyte for their batteries. With a view to possibly supplement that with future vanadium production from other locations like Nevada and Canada (I forget where in Canada they mentioned).

DST seem to believe that the factory at the centre of Protean’s Perth trial of the V-KOR VRFB are still utilising the battery two years later.

From my enquiries to date Protean Energy currently appears to be a largely inactive silent investor with 50% ownership in KORID and Korea Vanadium (100% owner of the the Daejon project) with KOSDAQ listed DST Co Ltd holding the other 50% and exerting control.

I have sent emails and rung Protean and spoke to Matthew Foy. In relation to what Mr Foy said as well as the publicly available information I have read from MLD/MGX and DST I have also sent emails to MLD and DST to clarify some details. My first email to MLD was indirectly answered in their market announcement on 10/2/2020 which gave a breakdown of the recipients of the 20m MLD shares. My latest emails were only sent yesterday with no response as yet.

As per the MLD transaction Protean will have an indirect interest in 50% of the 7.5m shares to be issued to KORID. Existing shareholders of MLD do not seem too keen of the transaction with their shares closing this week at $0.025 vs a preconsolidation transaction value of about $0.046 per share. Meaning that it may be difficult for MGX to get the consolidation and capital raising through (these are preconditions of the transaction).