(VM.V) Nov. 8, 2018 – Voyageur Minerals Ltd. has signed a joint venture agreement with Chief Medical Supply Ltd (CM) of Calgary, Alberta. The joint venture will engage in the development, marketing and commercialization of human and animal radiographic contrast agents and related pharmaceutical products, focusing on development of barium sulfate contrast products.
The joint venture will provide Voyageur with the opportunity to penetrate the highest value barium sulfate market in the world. Management anticipates that cash flow from this line of business will begin in 2019.
Under the agreement, Voyageur will provide up to 2,000 metric tonnes annually of USP-grade barium sulfate API to the joint venture at no cost to the joint venture. CM will provide the Canadian regulatory approval, the formulation, manufacturing, testing and packaging of the barite suspension products, using its own facilities and equipment, at no cost to the joint venture. All other activities in respect to regulatory approvals, marketing and sales of the products will be for the account of the joint venture, and the costs of such will be a direct charge against the revenues of the joint venture.
The joint venture will begin formulation of its product lines and move forward with applications for Health Canada drug identification number registration. The joint venture’s target for initial sales is the second quarter of 2019. Initial sales of the product will focus on Canada utilizing the Health Canada bidding process.
After sales into the Canadian market have commenced, the joint venture will apply for certification and begin sales into Europe and the rest of the world, excluding the United States. Approval for sale in the United States requires approval through the FDA. This process will take a year or more before sales can begin in the United States.
The joint venture plans on targeting markets with government-run health care systems and private clinics. The following markets will be pursued in the near term: North America, Europe, Brazil, Argentina, Costa Rica, Panama, Colombia, South Africa, Russia, Israel, Turkey, Jordan, Qatar, Kuwait, United Arab Emirates, Malaysia, Singapore, Hong Kong, China, Japan, the Philippines, Brunei, South Korea, Australia and New Zealand.
Voyageur will work with Dr. Merle Olson and Paul Tulan, officers of CM who have a proven track record of successfully manufacturing and selling various pharmaceutical products. They bring with them a team of experts, turnkey barium suspension contrast manufacturing and expertise in formulating, marketing and permitting of pharmaceutical products.
CM provides high-quality, competitively priced pharmaceuticals and hemodialysis products to pharmacies and hospitals across Canada. Operating from both its 3,066-square-metre (33,000-square-foot) plant in Calgary, Alberta and its 8,361-square-metre (90,000-square-foot) facility in Mississauga, Ontario, CM is able to supply products coast to coast. CM has both drug and medical device establishment licences issued by Health Canada.
Voyageur Minerals is a Calgary-based company which owns 100-percent interests in three barium sulfate (barite) deposits, including two properties suitable in grade for the industrial barite marketplace, and interests in a high-grade lithium brine project in Utah.
Voyageur’s business plan is to develop its barite deposit at Frances Creek, B.C., for near-term cash flow while it continues exploration for critical and strategic minerals. The Frances Creek project is moving forward to manufacture pharmaceutical-grade barium sulfate and high-purity “blanc fixe” barium sulfate for the paint and plastic markets.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.