TEAKO MINERALS CORP. Teako Minerals Corp. announced the execution of a Licensing Agreement dated June 22, 2023, for the Sample Control System Exploration Product (SCS Exploration Product) with The Coring Company AS (TCC). Earlier this year, TCC launched its new Sample Control System ("SCS") for the optimization of ground investigations.
The SCS is expected to significantly reduce the cost of basic investigations and create time savings relative to traditional sampling and lab analyses by quickly collecting results in a single integrated app. This system is designed to optimize fieldwork procedures by utilizing data from drill rigs, samples, and industrial experience to produce more detailed analyses with reduced sample materials. The relationships with TCC and exposure to the SCS Exploration Product represents Teako's commitment to implementing cutting-edge technological solutions that increase efficiency and productivity within the mining industry.
Following the previously announced Letter of Intent, Teako and TCC have agreed to the terms of the Licensing Agreement, which grants Teako exclusive rights to use, sublicense, and resell TCC's SCS Exploration Product. The License Agreement is part of a larger framework that includes a research and development agreement (the "R&D Agreement") and a project agreement, which aims to deliver the SCS Exploration Product once it reaches commercialization. Teako and TCC will develop the SCS Exploration Product together under the R&D Agreement, which is still being negotiated.
Under the terms of the Licensing Agreement, Teako obtains an exclusive two-year license (the "Initial Term") for the SCS Exploration Product. The SCS Exploration Product comprises three components: the SCS Â Prospecting Software, the patented Cuttings Sampler Unit ("CSU") hardware, and the Sampler Emptying Unit ("SEU") hardware. The License Agreement permits Teako to use the SCS Exploration Product internally and also to resell or refer sales of the SCS Exploration Product within the Teako group of companies, through its wholly owned subsidiary Valence Mining Services Ltd. and its alliance members, and to other entities outside the Teako group of companies.
Teako and TCC have expectations of selling 500 units of the CSU during the Initial Term. The commercial terms, such as pricing for each of the components of the SCS Exploration Product, will be negotiated in good faith between the parties and before the Initial Term of the License Agreement. The SCS Exploration Product is intended for use in prospecting or exploration (including drilling) worldwide.
It is designed to provide substantially increased levels of data-driven analysis, reducing the amount of required sample materials and making processes more efficient. Operational planning, risk management, task management, and budget management can be streamlined via the SCS Â Prospecting Software platform, offering a comprehensive solution for ground investigation. With data from drill rigs, samples, and industrial experience, the SCS Exploration Product is expected to provide a much more detailed analysis requiring reduced sample materials and more effective operations.
