Licensing Process
This section outlines the steps The University of British Columbia asks prospective clients to follow to learn about the GALVANOX™ copper leaching process, to decide whether GALVANOX™ is the appropriate solution for their copper ore extraction needs, and to enter into discussions with UBC for a license to the GALVANOX™ process.
GALVANOX™ is a copper leaching process that was invented at UBC by Drs. Dave Dixon and Alain Tshilombo. UBC has applied for patents in numerous countries worldwide and is commercializing the technology. UBC has previously partnered with PRA and G&T Metallurgical to provide bench scale ore testing and pilot plant testing.
Step 1: Non Confidential Information
Clients are invited to review a non-confidential document about GALVANOX™ and the advantages it brings to copper leaching.
Step 2: Non Disclosure Agreement
Clients who would like to discuss specific implementation of GALVANOX™ to their operation with UBC are requested to enter into a Non Disclosure Agreement with UBC. The template NDA can be found here. Please direct any questions about the NDA to the UBC University-Industry Liaison office, attention: Roger Miller, (604) 822-9395, email roger.miller@uilo.ubc.ca. Clients are asked to send two signed hardcopies of the NDA to:
UBC University-Industry Liaison Office
Attention: Roger Miller
#103-6190 Agronomy Road
Vancouver, BC, Canada V6T 1Z3
Step 3: GALVANOX™ Testing of Client Ore
Once an NDA is signed, UBC asks clients to provide a small quantity of target ore to test against the GALVANOX™ process. Clients should contact the UILO directly to request such tests, and to provide the UILO with information about the grade and minerology of their ore. After UBC reviews their ore garde to estimate compatibility with GALVANOX™, the client will be asked to ship the ore to UBC and enter into an agreement for the testing, which will be at the client's expense. At the conclusion of the tests, the client will be provided with one or more reports explaining how GALVANOX™ performed in leaching copper from their ore, written by Dr. David Dixon. Further testing at a pilot plant may be arranged at the client's cost and such pilot plant tests will usually occur under a GALVANOX™ license discussed below.
Step 4: License Negotiations
Upon successful conclusion of ore testing, UBC will enter into confidential negotiations with interested clients for a license that will grant the client rights to apply the GALVANOX™ process to their mining operation. Negotiations will begin with the two parties agreeing to a term sheet that summarizes the principle commercial terms. Following successful negotiation of the term sheet, the parties will negotiate a license that incorporates the term sheet. The client will simultaneously enter into negotiations with an engineering services provider acceptable to UBC and the client for the provision of engineering services, including a technology supply package.
Licensing Models
At this time, there are three models which UBC is considering for providing access to the GALVANOX™ Technology. These models may change as GALVANOX™ is commercialized, and each license may be negotiated on a case by case basis. UBC and the client and will work with the selected engineering company in the placement of GALVANOX™ at such sites. The three technology fee models are: royalty, royalty buyout, and early adopter discount. These are described in the table below.
| Royalty Rate | UBC and the licensee will negotiate a reasonable and equitable royalty rate based the amount of copper produced with the GALVANOX™ technology. The royalty rate typically takes into account the incremental value that GALVANOX™ brings to the project, the risk for UBC and the licensee of adopting the technology and the time frame of the project. The royalty rate model is the simplest to understand and carries the least upfront risk to a licensee, as the upfront license fee of a GALVANOX™ license is low and royalties are not paid if the technology is abandoned for lack of performance. |
| Royalty Buy-Out | The Licensee may pay a one-time payment in lieu of ongoing royalties. The calculation used to determine the payment amount is as follows:
|
| Early Adpoter Discount | For the early adoption phase of GALVANOX™ technology - perhaps the first few implementations - UBC acknowledges the technical and business risks associated with adopting new technology. Likewise, the ‘reference implementations’ of GALVANOX™ are important demonstrations of GALVANOX™. Therefore, the royalty rate may be reduced by means of Royalty Discount Programs available to Early-Adopter Licensees:Galvanox Demonstration Royalty Discount Program:UBC is prepared to reduce the royalty by 25% for LICENSEES who assist UBC to demonstrate the GALVANOX™ technology. Demonstration assistance means meeting certain milestones including:
|
