Metal process

Cover Technologies provides update on the development of its metal-magnesium process and announces “Nifty”, a division for non-fungible tokens (NFT)

VANCOUVER, British Columbia, Oct 07, 2021 (GLOBE NEWSWIRE) – COVER TECHNOLOGIES INC. (CSE: COVE) (OTC: MGPRF) (Frankfurt: 304A) (the “Company” or “Cover”) is pleased to announce that its wholly owned subsidiary, Mag One Operations (“Mag One”), will begin its next phase to demonstrate the feasibility of producing magnesium metal using Tech Magnesium’s new thermite reduction process. The first work, carried out in 2019, was supported by the National Research Council of Canada (CNRC), as part of its Industrial Research Assistance Program (IRAP-CNRC).

As a reminder, in 2019, Mag One entered into a technology acquisition agreement with Tech Magnesium. Tech Magnesium technology was developed by Dr. Doug Zuliani, President and Founder of Tech Magnesium. Dr Zuliani, along with Dr David Dreisinger and Ms Gillian Holcroft, will lead this next phase to demonstrate the ability to produce Mg metal from magnesium oxide. This next phase will take place in three (3) stages over a period of 4 months.

Gillian Holcroft, President of Mag One, said: “We are delighted to begin the next phase of this groundbreaking work, following promising initial results. In the initial phase, we modified an existing furnace and performed several tests to assess the feasibility of producing Mg metal. This same furnace is still in place, which allows us to start running. Tech Magnesium technology, together with our serpentinite magnesium oxide (MgO) tailings production technology, aims to become the cheapest and most environmentally friendly primary magnesium metal produced in the world.

Dr Douglas Zuliani said: “A cost-effective aluminothermic MgO reduction process will be beneficial for vehicle weight reduction. It will enable widespread adoption of ultra-light, low-carbon magnesium alloy components, providing significant weight savings at estimated net costs that are highly competitive with current vehicle alloys, including aluminum and high-alloy steel. . I look forward to working with the Mag One team to quickly develop this technology into a commercial reality.

The test work will be divided into three (3) technical steps with the primary objectives of obtaining a quality Mg metal product at high yields and aluminum end products that have use or recycling value.

Cover is also pleased to announce the launch of a dedicated division called owl for non-fungible tokens (“NFT”) as well as associated assets and technologies in the category of decentralized finance (“DeFi”). The Company’s business activities owl division could add value to its existing magnesium business as well as its spot metals market ElectrumX, which is currently under development as announced in Cover’s September 22, 2021 Press release.

The use of intellectual property which includes the Flurbo Technology acquired by Cover from Nifty Technologies Inc. (“Nifty”), the Company intends to create solutions under its NFT division for the issuance and transaction of NFT for various purposes, including representation data-driven commodity ownership. In a September 23, 2021 article from the metals giant Kitco, the many possible applications of NFTs have been detailed for unique assets such as works of art, which has led organizations such as Visa to invest in NFTs such as CryptoPunks1. As this wide range of use cases continue to prove popular, Cover also intends to explore NFT opportunities outside of basic minerals such as magnesium as part of its NFT division’s business.

Cover CEO Dorian Banks commented, “In the commodities arena where transactions often rely on outdated technology, NFTs can unlock tremendous value for all players in the minerals segment. Blockchain and crypto technologies have continued to maintain and strengthen their value proposition over the years, and I believe that through our NFT division, we can open many new doors that complement our existing magnesium operations. Based on the performance of our initial NFT applications to basic minerals such as magnesium, we may also soon begin to explore other NFT applications in areas such as media, digital art, and collectibles.

Sources

1 – https://www.kitco.com/news/2021-09-23/How-NFTs-are-fueling-the-Ethereum-price.html

On behalf of the Board of Directors of the Company,

COVER TECHNOLOGIES INC.

“Dorian banks”

Dorian Banks, CEO

For more information, please contact:

Cover Technologies Inc. Investor Relations
+1 604-687-2038
[email protected]

Neither the Canadian Securities Exchange nor its regulatory services provider accepts responsibility for the adequacy or accuracy of this press release.

About Cover Technologies Inc.

Cover Technologies Inc. is a technology research and development company focused on emerging technologies and solutions. In addition to ongoing research and development on its magnesium processing technology, Cover Technologies seeks to identify opportunities in emerging technologies. For further information or questions regarding the Company, please contact the Company by email at [email protected]. Additional information can be found by viewing company documents at www.sedar.com.

Forward-looking information

This press release contains “forward-looking statements”. Statements in this press release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations or intentions regarding the future. These forward-looking statements include, among other things: that the Company’s Tech Magnesium technology, together with its magnesium oxide (MgO) serpentinite tailings production technology, aims to become the most environmentally friendly and inexpensive primary magnesium product in the world; that a cost-effective aluminothermic MgO reduction process will benefit vehicle weight reduction, allowing widespread adoption of ultra-light, low-carbon magnesium alloy components, resulting in significant weight savings at cost net estimated to be very competitive compared to current vehicle alloys, including aluminum and high alloy steel; that the Company will develop its magnesium technology into a commercial reality; and that the Company intends to create solutions as part of its NFT division for the issuance and transaction of NFT for various purposes, including data-driven representation of commodity ownership.

Significant assumptions supporting these forward-looking statements include, among other things, that: the technology to produce metallic magnesium from the tailings is proven and adopted by the industry; the availability of a sufficient quantity of serpentinite tailings at an economically viable price; magnesium production technology will produce less waste than any other commercially available technology or treatment method; there is a market for the sale of the by-products of the production of magnesium metal; end users such as car manufacturers would adopt the use of magnesium metal as an alternative to aluminum; the ability to manufacture the modular design of the processing units in a timely manner; the growing adoption of NFTs as a solution for various data-driven use cases; the Company has the ability to mitigate the risks associated with the blockchain and NFT industry; and the ability to compete with other companies in the NFT market.

Although management considers these assumptions to be reasonable on the basis of the information currently available to it, they may prove to be inaccurate. These forward-looking statements are predictions only and involve known and unknown risks, uncertainties and other factors, including: the risk that the Company may not be able to effectively develop its magnesium technology; the risk that other competitors will offer technology similar to magnesium; the risk that there may be negative changes in general economic and trade conditions; the risk that the Company may have negative cash flow from operations and not enough capital to complete the development of any of its technologies; the risk that the Company will not be able to obtain additional financing if necessary; the risk of increased investment and operating costs; the risk that NFT technology is subject to fraud and other failure; the risk that there are technological changes and developments in the blockchain that make NFT solutions obsolete; risks associated with regulatory changes or actions that may hinder the development or operation of blockchain solutions; the risk of other competitors releasing similar blockchain solutions; the potential future unsustainability of the NFT market in general; and other general risks involved in blockchain solutions.

The risks and uncertainties relating to the business of the Company are discussed in more detail in the Company’s disclosure documents, including its reports filed with Canadian securities regulators and which may be obtained from www.sedar.com.

Any of these risks may cause the actual results, levels of activity, performance or achievements of the Company to differ materially from the future results, levels of activity, performance or achievements expressed or implied by such statements. prospective. In addition, although the Company has attempted to identify factors that could cause actual results, levels of activity, performance or achievements to differ materially from those described in forward-looking statements, there may be Other factors that may result in results, activity levels, performance or achievements need not be those expected, estimated or predicted. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update any forward-looking statements, or to update the reasons why actual results could differ from those projected in the statements. forward-looking, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be correct. The Company assumes no responsibility for the disclosure relating to any other company mentioned herein.