Apr 6 2006
The Directors of Magnesium International Limited advise that its wholly owned subsidiary, Magsheet Pty Limited (“MagSheet”), has entered into a Memorandum of Understanding with a major Japanese metal manufacturer (“the Japanese Company”) for a Cooperative Feasibility Study.
The intention of the Cooperative Feasibility Study is to enable the parties to make final technical and quality evaluations of MagSheet’s magnesium alloy product, which is produced with MagSheet’s TRC technology. The Japanese Company is targeting computer, communications and consumer electronics manufacturers as potential customers for MagSheet.
Under the Memorandum of Understanding and subject to the final technical evaluations, the Japanese Company contemplates distributing products made from MagSheet’s intermediate 3 mm thick twin roll cast (“TRC”) AZ31B magnesium alloy coils to existing and potential customers and undertaking related marketing activities.
It is the intention of Magsheet and the Japanese Company to discuss licensing and/or supply agreements for the TRC technology at the completion of the Cooperative Feasibility Study. This MOU is an important step in the commercialisation of the TRC technology that MagSheet has under option from the CSIRO. Magsheet expects that commercial orders could be placed in 2006 following the Memorandum of Understanding.