American Vanadium Vertically Integrates into an Energy Storage Company
May 22, 2013 - American Vanadium Corp. ("American Vanadium") (TSX.V: AVC) (OTCQX: AVCVF), announced it has entered into a master sales agreement with GILDEMEISTER energy solutions of Germany whereby American Vanadium will market and sell GILDEMEISTER's CellCube vanadium redox flow batteries in North America. The CellCube is a commercially available energy storage system, with over 50 systems installed globally, that is capable of scaling to multi hour and multi megawatt size. While American Vanadium will immediately initiate sales efforts using commercially available vanadium electrolyte, the goal is to integrate its own electrolyte supply from its Gibellini Mine in Nevada which is currently in the permitting phase.
"Coming quickly on the heels of our recently signed memorandum of understanding with GILDEMEISTER, this confirms the achievement of our goal of vertically integrating into an energy storage company that controls America's only domestic supply of vanadium, the critical element in the vanadium redox flow batteries," said Bill Radvak, President & CEO of American Vanadium . "Reliable and economic energy storage technologies have been cited as the 'Holy Grail' of the energy industry and, as a result of this agreement, American Vanadium will be able to immediately offer a market ready energy storage solution to wind and solar generators, emergency and remote power applications, as well as for grid reliability and efficiency optimization for commercial, industrial and military applications."
"With GILDEMEISTER as the world leader in commercial production of vanadium redox flow batteries, and American Vanadium having the only commercially viable source of high quality vanadium in North America, there are tremendous advantages to the development of the North American market for our CellCube energy storage system," said Lars Mollenhoff, Managing Director of Cellstrom GmbH, part of GILDEMEISTER energy solutions.
"Given that the CellCube battery will last twenty years and that our high purity vanadium electrolyte doesn't degrade and is fully recoverable, we have a significant performance and cost advantage over other large scale energy storage systems," said Ron Mac Donald, Executive Chairman of American Vanadium. "In addition to these advantages, we are developing innovative financial approaches to facilitate the sale of the CellCubes in America, including leasing the batteries entirely."
GILDEMEISTER holds a leading position worldwide as a producer of cutting machine tools. The range it offers includes innovative high-tech machines and services as well as software and energy solutions. The Energy Solutions business division comprises five business divisions: Energy Efficiency, SunCarrier, Cellstrom, Service and Components. GILDEMEISTER is a globally operating enterprise; 135 domestic and international sales and service locations ensure direct contact with our customers. Some 6,347 employees contribute to the success of our enterprise.
About American Vanadium Corp.
American Vanadium is developing the only vanadium mine in the United States. The Company's
Gibellini Project, located in Nevada, is being designed to economically produce vanadium electrolyte for the energy storage industry, as well as vanadium products for the steel and alloying industries. A positive Feasibility Study and updated National Instrument 43-101 on the Gibellini Project were completed by AMEC E&C Services in 2011.
American Vanadium trades on the TSX Venture Exchange as a tier-one company under the symbol "AVC", the OTCQX Market under the symbol "AVCVF" and the Frankfurt Stock Exchange under the symbol "0UA".
ON BEHALF OF THE BOARD
Bill Radvak, President and CEO
For further information, please contact: Bill Radvak, President & CEO
Phone: (604) 681-8588 X 101
Mike Hyslop, Director, Corporate Development
Phone: (604) 681-8588 X 102
Web site: www.americanvanadium.com
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Forward-Looking Statements: This press release contains "forward-looking information" within the meaning of applicable Canadian securities laws, including future plans and objectives for the Gibellini Project and the energy storage business. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of American Vanadium to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Forward-looking information includes estimates of mine production rates and mine life, revenues from future mining operations, capital and operating costs, and pay-back period. Factors that may cause actual results to vary include, but are not limited to, changes in project parameters as plans continue to be refined; future prices of vanadium; possible variations in reserves, grade or recovery rates; changes to capital and operating cost estimate, delays in obtaining governmental approvals or financing or in the completion of development or construction activities. We may not have adequate capital, financing or cash flow to sustain our business or implement our business plans. Statements contemplating or making assumptions regarding actual or potential sales, market size and demand, prospective business contracts, customer orders or trends in the energy storage market constitute forward looking statements. Our actual results may differ from those indicated in forward looking statements as the energy storage and renewable energy generation business is subject to significant economic, competitive, regulatory, business and industry risks which are difficult to predict and many of which are beyond our control. Our business performance may be adversely affected by a general decline in the economy, unavailability of capital or financing for prospective customers to purchase products and services from us, competition, changes in regulations, a decline in the demand for energy storage and other risks. Although American Vanadium has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. American Vanadium does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.