G4G Resources Ltd., a Canada-based mineral exploration and development company focused on iron ore and iron production projects, is acquiring a 51% interest in Magnetite Holdings, a South-Africa-based holder of iron ore assets that is developing a chemical grade iron catalyst for the Fischer-Tropsch process.
Chemical catalysts that break fossil fuels into their molecular parts result in higher rates of production efficiency and more environmentally friendly fuels and is a multi billion dollar business. Although catalysts have always been essential in the chemical industry, advances in catalyst technology have the potential to revolutionize the fossil fuels market. Governments who chose to adapt to these new technologies will have more control over their own political and economic destinies.—Basil Botha, President & CEO of G4G Resources Ltd.
Magnetite Holdings has an 80% equity holding in Namibian Magnetite (Pty) Ltd. In consideration for a US$20,000 cash payment, Magnetite Holdings will grant G4G an exclusivity period of sixty days, in which G4G may conduct due diligence on the iron ore assets.
Following a positive outcome from the due diligence evaluation, G4G can exercise its option to spend US$480,000 over a 12-month period to expand the current resource and obtain NI 43-101 status of the assets. National Instrument 43-101 (NI 43-101) is a rule developed by the Canadian Securities Administrators (CSA) and administered by the provincial securities commissions that govern how issuers disclose scientific and technical information about their mineral projects to the public.
Following completion of the option to expand the current resource and the completion of a bankable feasibility study, G4G will acquire a 51% interest in Magnetite Holdings. Upon exercising this option, Magnetite Holdings will be entitled to put its shares into G4G in consideration for a gross royalty of 2% of revenue or a payment by G4G to Magnetite Holdings of US$2,000,000.