Shares in MGX Minerals Inc (CSE:XMG, OTCQB:MGXMF) nudged higher on Tuesday as the energy and materials group unveiled a new collaboration - this time with Highbury Energy Inc.
Highbury will prepare a detailed process to extract metals like nickel, vanadium, and cobalt from petroleum coke, or petcoke - a by-product from the oil and gas industry.
Highbury will assist MGX in designing a process to generate hydrogen gas and concentrate metals in the form of ash byproduct.
It has already completed a Phase I report on potential processes and markets and now a Phase II study has started, including analyses of locations, laboratory bench top feedstock results, advanced process design and initial plant design parameters.
"Similar to advancements made by the company over the last year in treating wastewater brine and recovering minerals, MGX and Highbury will look to develop a process that utilizes gasification methods to concentrate metals from petcoke," said MGX president and chief executive Jared Lazerson.
"We believe entry into an untapped market of this magnitude aligns perfectly with our business strategy of creating innovative processes and technology to shape the new energy economy."
The province of Alberta in Canada is known to host vast stockpiles of petcoke. According to energy regulator there, petcoke inventories are estimated to have reached 106mln tonnes in 2016.
MGX said the development of the detailed process will be led by Dr Paul Watkinson, a professor at the University of British Columbia and a co-founder of Highbury.
MGX shares added 9.38% in Toronto to stand at C$1.40 each.