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NovX21 Inc. – Low-Cost, Highly Efficient Recovery of Platinum Group Metals

NovX21 Inc.

Overview

NovX21 Inc. (TSXV:NOV) is a Platinum Group Metals (PGM) recovery technology company based in Quebec, Canada. The Company offers low-cost, clean technology for the recovery of PGMs using small-footprint facilities that require a low CAPEX investment. The technology transforms PGM-rich materials into a highly-concentrated metallic powder in just a few days. NovX21’s mission is to sustainably recover recycled precious metals meeting global standards for the automobile industry.

The Company’s 50 tons per year (TPY) demonstration plant is located near Quebec City, in St-Augustin-de-Desmaures and the chemical process yields very high recoveries of PGMs, in the order of 97% and more, at lower costs and higher efficiency than conventional smelters. The Company plans to build a 200 TPY PGM Recovery Plant.

NovX21 also holds the mineral rights to six properties in Quebec, namely the Ménarik, Lac Ewart, Courville,  Fabre, Tavernier and Vauquelin properties.

Investment Highlights

  • NovX21 owns 100% of the patented process IP with no royalties
  • The patented technology is proven with over 97% recovery of PGMs and other precious metals
  • The 50 TPY demonstration plant is permitted and generating revenues; planned 200 TPY PGM Recovery Plant could generate C$29M in Revenues per year with gross profit margins of 35%
  • Low CAPEX (C$8M) to build 200 TPY plant; payback is less than 9 months
  • The plant is scalable and fully operational in 8 – 12 months
  • Green Efficient Technology; Closed loop process that generates low emissions and low energy demand
  • Usable by products – in line with environmentally friendly mega trends around the globe

Key Project

PGM Recovery Plant Project—Quebec, Canada

Platinum Group Metals are geologically, technically and chemically hard to extract. NovX21 Inc. has developed a process for the recovery of PGM and other precious metals from refractory recycled material and from PGM-rich concentrates recycled from automobile catalytic converters. The NovX21 patented chlorination process that yields more than 97% recoveries of PGMs, is much less capital extensive and operates at a more efficient pace than conventional smelters. The finished product is fine 35-μm metallic powder containing no glass or carbon. No special preparation is needed to process the ceramic unit containing the PGM.

Ion exchange tower

Ion exchange tower

NovX21’s innovative process optimizes the recovery of resources while reducing the environmental impact, the recovery time and the energy usage by more than 90%. The qualities and properties of the technology are such that a plant could be installed in any region that can supply 200,000 salvaged vehicle-motors, equivalent to 200 tons/year of catalytic converters.  This volume allows the plant to operate around the clock at a Conversion Speed that would generate excellent gross profit margins.

Ion exchange tower from pilot plant

Ion exchange tower from pilot plant

The plant consumes very little energy, about 4 kW per hour per reactor. Its footprint is small, at about 4,000 ft2 (371.6 m2) for a 200 TPY plant. Gaseous emissions consist of air, moisture and carbon dioxide from calcination. The processing plant can be constructed quickly, requires minimal operator training and can be remotely controlled and supervised.

Dissolution tank

Dissolution tank

NovX21 owns 100% of its PGM Recovery Process with no royalties and its patents have been issued in the U.S. in 2011 and in Canada in 2012.

Press-filter

Press-filter

The Company’s 50 TPY demonstration plant, located near Quebec City, in St. Augustin-de-Desmaures, is permitted and generates revenues. The planned 200 TPY plant could generate C$29M in Revenues per year with gross profit margins of 35%. Low CAPEX is required to build the PGM Recovery Plant with payback through revenues projected in 9 months. The plant, that requires only 4,000 ft2 of space, is scalable and capable of becoming fully operational in 8 – 12 months.

PGM market evolving

The global PGM markets are extremely tight, controlled by a small number of players in an environment further stressed by the current slowdown in new mine development by major mining companies. This scenario will exacerbate supply shortages in the future, supporting higher metal prices. Where production becomes overly expensive, recycling is the hidden value in PGM plays, especially in North America, Europe and Asia.

South Africa, endowed with half of the world’s PGM resources and reserves, produces 75% of the global resource from smelting processes with high energy costs. The issue of securing a safe supply is becoming more obvious in a market where production is politically unstable. Other PGM resources coming from Russian stockpiles are hitting bottom lows. Russian PGM exports are at their lowest at a time when explosive growth in automobiles and trucks worldwide require catalytic converters to produce lower gas emission in order to comply with new environmental regulations.

The world of PGM use is changing its center of gravity: it is shifting both East and West away from the U.S., thus the importance of securing a low geopolitical risk resource of PGMs—such as from recycled materials— in North America and limiting the dependence on South Africa.

Benefits of NovX21 Technology

“NovX21 is 21st century, smelters is 19th century” – Jack Lifton, a sector expert on PGMs and consultant to NovX21

Conventional PGM Recovery vs. Prototype NovX21 PGM Process

Highly corrosive due to strong acid used Average recoveries above 97%
Energy intensive (high-temp smelting) Weak acid concentration (reusable/recyclable)
Large feedstock inventory Low gas emission (CO2 & H2O vapor)
Long process cycle with multiple steps Low energy consumption
Revenue generated in 24-32 weeks Quick processing time (fewer steps)
Large Plants (high capex) Revenues generated in 7-8 weeks
Significant environmental impact Modular, inexpensive facility
Overseas processing, expensive logistics Minimum environmental impact
Domestic recycling, transportation advantage

Summary

NovX21 Inc. has developed a chemical approach of dry chlorination for the recovery of platinum group metals from recycled catalytic converters. The patented chlorination process transforms refractory recycled material and PGM-rich concentrates recycled from automobile catalytic converters into a fine 35-μm metallic powder in a matter of days. The technology optimizes the recovery of PGM resources, reduces the environmental impact, and lowers energy usage by more than 90%.

The Company has a 50 ton per year or TYP demonstration plant, near Quebec City, which yields very high recoveries of PGMs at a rate of 97% and more, at lower costs and higher efficiency than conventional smelters. In keeping with its mission to sustainably recover recycled precious metals for use in the automobile industry, NovX21 Inc. plans to build a 200 TPY PGM Recovery Plant that could generate gross profit margins of 35% for a return on investment in 9 months. The low-cost clean technology plant requires low CAPEX investment, is scalable and fully operational in less than one year.

NovX21 Inc. also holds the mineral rights to six properties with a main focus on the Menarik property in the James Bay area of Quebec, Canada.

Management

Sylvain Boulanger, Ing. – CEO and Chairman of the Board
Mr. Boulanger is President of NovX21 Inc. and has managed the Company on a full-time basis since 2011. He graduated from École Polytechnique in Montreal in 1977 with a Bachelor of Applied Science (Electrical Engineering) and worked for more than 20 years in manufacturing, holding intermediate and senior management positions with General Motors, Paccar and Nike. He subsequently moved into supply chain management at the ALDO Group, La Vie En Rose and GENCO Distribution Systems, where he was Vice President for 10 years.

Pierre Gévry – Director of Finance
Mr. Gévry is the present CEO of les Mines J.A.G. Ltd. He has worked for more than 40 years in the financial and in the mining sectors. He is currently chairman of J.A.G and was one of the founders of Orbite Aluminae as well as of NovX21 Inc.

Yves Pelletier – Vice President of Exploration
Mr. Pelletier is Vice President, Exploration and holds a Bachelor of Arts from Université de Montréal and a Bachelor of Applied Sciences (Geological Engineering) from Ecole Polytechnique in Montreal. Mr. Pelletier also did five years of graduate studies and research at the Department of Earth and Planetary Sciences at the Massachusetts Institute of Technology, including two courses at Harvard University. He has worked full time in mineral exploration for more than 29 years and has been a consultant geologist since 1985, primarily for NovX21 Inc. and Groupe Minier St-Jacques.

John LeBoutillier – Chairman of the Board
John LeBoutillier, Member of the Order of Canada, has been appointed as Chairman of the Board of NovX21. He is currently Chairman of the Board of Industrial Alliance Insurance and Financial Services Inc. and of Groupe Deschênes Inc., Vice Chairman of TechnoCentre éolien (Gaspésie-Îles-de-la-Madeleine) and a board member of a number of public issuers, such as Mazarin Inc., SEMAFO Inc. and Stornoway Diamond Corporation.

Mr. LeBoutillier was President and Chief Executive Officer of Iron Ore Company of Canada from 1996 to 2000 and President and Chief Executive Officer of Sidbec-Dosco (Ispat) Inc. (currently known as ArcelorMittal Montréal) from 1983 to 1996. He was also a member or board member, as applicable, of many industrial associations at Canadian and international levels, namely the Québec’s Health Review (The Clair Commission) in 2000 and the Canadian Democracy and Corporate Accountability Commission in 2001. Mr. LeBoutillier has a law degree from University Laval in Québec City and an MBA from University of Western Ontario (currently known as the Richard Ivey School of Business).

André Boulanger – Member of the Board
André Boulanger, MESc, is currently President of Hydro-Québec TransÉnergie, where he manages an electrical network in North America. He was also President of Hydro-Québec, Distribution Québec, from 2003 to 2011, where he was responsible for the reliability of the electrical network, its distribution and supply and demand planning for 3.9 million consumers. Prior to such functions, Mr. A. Boulanger was a senior executive at Gaz Métro Inc. from 1983 to 2003. He has been a member of the Institute of Corporate Directors since 2010 and is a board member of Northeast Power Coordination Council Inc. (New York) and Chairman of the board of Cedars Rapids Ltd., as well as board member of the Cancer Institute of Montréal and other economic development and cultural organizations. Mr. Boulanger studied at a doctorate level at the Georgia Institute of Technology (Atlanta, U.S.) and has a bachelor’s and master’s degrees in mechanical engineering from the Université Laval in Québec City.

René Branchaud – Member of the Board
René Branchaud holds an LLB from Université Laval obtained in 1982. He has been a lawyer since 1983 and is a partner of the law firm Lavery, de Billy, L.L.P. He practices in the areas of securities law, mergers and acquisitions and corporate law. Mr. Branchaud serves on the board of directors and is corporate secretary of several public companies. He also serves on several committees of the board of directors, including corporate governance committees and ad hoc committees created for specific transactions (mergers, takeovers). In addition, he advises directors who sit on ad hoc committees.

Jean-Paul Schaack – Member of the Board
Jean-Paul Schaack, an MBA retiree since 2007, spent most of his career from 1982 to 2007 in the steel industry with ArcelorMittal Canada or its predecessor companies. As Director of Strategic Planning of that company, he was instrumental in the creation of four joint venture subsidiaries of which he also became a director. Later, as Vice President, he was responsible for the Purchasing and Environment division, where his focus was principally on the efficient purchase and optimal usage of raw materials and energy, during which time he was involved in several due diligence studies and acquisitions. He also sat on the board of industrial associations of energy intensive companies. Prior to joining the steel industry, Jean-Paul Schaack was a consultant for SNC-Lavalin Group Inc., where he participated in numerous feasibility studies on industrial and power projects in Canada and overseas. He obtained his engineering degree from the École des Mines de Paris (France) and a master’s degree in management sciences from the University of Waterloo (Ontario).