- May 21, 2014
- Applied Minerals Enters Into LOI With Lorama Group, Inc. for Distribution of AMIRON Iron Oxide Pigments
NEW YORK, NY--(Marketwired - May 20, 2014) - Applied Minerals, Inc. (the "Company," "Applied Minerals") (OTCQB: AMNL), a leading global producer of Dragonite™ halloysite clay and AMIRON™ advanced natural iron oxides, today announced that it has signed a non-binding Letter of Intent ("LOI") to form an agreement with The Lorama Group, Inc. ("Lorama") to market, sell, and distribute its AMIRON™ line of iron oxide-based pigments globally to the paint and coatings industry on an exclusive basis.
Lorama is recognized as the leading global supplier of paint emulsion technologies and products. The company supplies the world's leading paint and coatings companies such as, but not limited to, BASF, Elementis, Lansco & Halox. Its products are sold in over 90 countries, all supplied from its manufacturing facility located in Milton, Ontario (Canada).
Based on development projects that have led to this agreement, Lorama is anticipating a positive market reception for AMIRON:ST™, our family of semi-transparent pigment grades developed for use in interior and exterior wood stains. Transparent iron oxide colorants are not widespread on the market because they are prohibitively expensive, difficult to produce, and extremely challenging and costly to disperse. AMIRON:ST, on the other hand, is an advanced-natural iron oxide-based pigment line that offers excellent dispersability in addition to color consistency and UV protection. The AMIRON:ST pigments will be marketed as an easily dispersible powder form as well as in a liquid dispersion for both water and solvent borne paint systems.
The LOI contemplates that Lorama will have the exclusive global rights to market and distribute AMIRON iron oxide-based pigments to the paints and coatings industry. The exclusivity of the contemplated distribution agreement will require that certain annual volume guarantees are met. We expect a distribution agreement to be finalized in the coming months.
Pat Amiel, CEO of the Lorama Group commented: "The extensive development work performed at our lab to date has clearly demonstrated the commercial viability of the AMIRON product line for paints and coatings. The market for transparent pigments, in particular, is a highly profitable one with attractive growth prospects. We are excited for the upcoming launch of the AMIRON line of products across our global customer base."
Andre Zeitoun, CEO of Applied Minerals added: "We are excited to join forces with the Lorama team. We view the paints and coatings segment as one of the largest opportunities for our AMIRON iron oxide-based pigments. We are strongly encouraged by the work the Lorama team has done to validate our products in one of the highest value segments of the coatings market. We are very much looking forward to a fruitful relationship."
About Applied Minerals
Applied Minerals is the leading producer of halloysite clay and advanced natural iron oxide solutions from its wholly-owned Dragon Mine property in Utah. Halloysite is aluminosilicate clay that forms naturally occurring nanotubes. In addition to serving the traditional halloysite markets for use in technical ceramics and catalytic applications, the Company has developed niche applications that benefit from the tubular morphology of its halloysite. These applications include carriers of active ingredients in paints, coatings and building materials, environmental remediation, agricultural applications and high-performance additives & fillers for plastic composites. Applied Minerals markets its halloysite products under the Dragonite™ trade name.
The Dragon Mine also contains an advanced natural iron oxide resource consisting of Goethite and Hematite. Combining ultra-high purity and consistent quality, the inherent properties of iron oxide from the Dragon Mine allow for a wide range of end uses in pigment and technical applications. Applied Minerals markets its comprehensive line of advanced natural iron oxide pigments under the AMIRON™ trade name.
Additional information on the Company can be found at www.amiron-oxides.com
About Lorama Group
The Lorama Group is a strategic partnership of several companies specializing in the research, development, manufacture, and distribution of sustainable raw materials and colour technology solutions for the paint industry. Skill, expertise and continued investment in the science of paint formulation ensures that Lorama Group customers benefit from cutting-edge innovation and product solutions designed to satisfy the demands of ever-changing industry regulations.
Striving for a greener tomorrow, the Lorama Group works to reduce the environmental impact of our facilities, our customers and the paint industry. Worldwide distribution capabilities are backed by an expansive sales and support network presently selling in over 95 countries. Owned by Lorama Inc., the growing group of companies has more than 100 employees, 30 of which are dedicated R&D chemists, and is presently comprised of: Lorama Group, Lorama Group International, Lorama Group Logistics, Lorama Mercosul Comercial, and Specialty Chemical Sales.
Safe harbor statements under the Private Securities Litigation Reform Act of 1995 for Applied Minerals, Inc.: Some statements contained or implied in this news release may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the Company's financial results, please refer to Applied Minerals' most recent filings with the SEC. The Company assumes no obligation to update any forward-looking information.
Jordan M. Darrow