Press Release
VANCOUVER, British Columbia, Oct. 21, 2024 — DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a leading vertically integrated blockchain and data center technology company, announces the signing of a Memorandum of Understanding (“MOU”) with Malahat First Nation’s Economic Development Corporation (“Malahat”) to develop a total of 30 megawatts of artificial intelligence (AI) data centers, evenly split between the two parties (the “Transaction”).
DMG plans to develop its portion of the AI infrastructure at its Christina Lake facility, while Malahat will focus on expanding their infrastructure on their lands on Vancouver Island. Both parties are committed to using clean energy sources within British Columbia, aligning with the province’s sustainability goals. Together, they emphasize the importance of Indigenous-owned and partnered technology projects powered by clean energy, ensuring that First Nations, industry and government collaborate to deliver shared economic benefits to local communities while contributing to British Columbia’s low-carbon future.
The project will be managed through a general partnership led by DMG. The partnership intends to secure power from BC Hydro for both Malahat’s portion and future expansion phases, subject to the execution of a definitive agreement (“Definitive Agreement”) between the parties. DMG will take responsibility for developing, managing and operating both data centers, which will be designed to meet the processing resilience needs of future client projects.
The Transaction is conditional upon, among other things:
In addition to this project, and on commercially reasonable terms, DMG will enter into an exclusive agreement to procure battery and energy system management technologies from Malahat Battery Technologies — a limited partnership between the economic development corporation of the Malahat Nation and Energy Plug Technologies Corp. This procurement will support the development and operation of high-performance AI data center facilities at Malahat and Christina Lake. Each site is projected to require 7.5 to 15 megawatt-hours of battery systems to meet their energy demands. The parties will collaborate closely to ensure that the supplied technology aligns with both operational requirements and sustainability goals.
A key focus of this initiative is Indigenous-led development, with the Malahat Nation playing a central role in driving economic and employment growth. Malahat will hold a controlling stake in the joint venture. DMG is committed to ensuring that at least 10% of the workforce at the Malahat facility consists of Indigenous employees, with a focus on youth apprenticeships. Additionally, DMG will source energy systems from Malahat Battery Technologies and provide funding for Malahat Nation cultural programs, adhering to all regulations concerning cultural heritage and archaeological materials.
Commenting on the partnership, DMG’s CEO Sheldon Bennett said, “This collaboration with the Malahat Nation represents a pivotal step forward for both organizations and the Canadian technology sector as a whole. By developing a combined 30 megawatts of leading-edge AI data centers — one in the Malahat Nation business park and the other at our Christina Lake facility — we are not only advancing critical infrastructure but also empowering Indigenous communities to take a leading role in the future of technology. This partnership is about creating lasting economic value, preserving cultural heritage and promoting sustainable growth. We are honored to work alongside the Malahat Nation and are deeply committed to fostering long-term growth, workforce development and providing meaningful employment opportunities for Indigenous peoples. We are working towards finalizing the Definitive Agreement and completing the Transaction.”
DMG will issue an additional news release related to the final legal structure and terms of the Transaction, financing terms and other material information as it becomes available.
About The Malahat Nation
The Malahat Nation is a proud Coast Salish Indigenous community and one of the five W̱SÁNEĆ (Saanich) Nations. We are situated between Victoria and Mill Bay, British Columbia, Canada with two reserve lands located on the western shore of Saanich Inlet nestled beneath a nearby mountain range commonly known as The Malahat, one of the most sacred sites on southern Vancouver Island.
The Economic Development Corporation of the Malahat Nation (“YOS”), seeks business opportunities that align with Malahat laws and values and YOS’s mission to support the growth of business and employment opportunities for members of Malahat and to support learning, family, health, culture and traditions while looking after the lands and resources of Malahat, to make a better world for future generations.
About DMG Blockchain Solutions Inc.
DMG is a sustainable, vertically integrated blockchain and data center technology company that develops, manages, and operates comprehensive platform solutions to monetize the blockchain ecosystem. The company’s operations are driven by two strategic pillars: Core and Core+, both unified by DMG’s commitment to vertical integration and environmentally responsible practices. DMG’s subsidiary Systemic Trust Corporation is focused on custody of digital assets.
For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on Twitter and subscribe to DMG’s YouTube channel.
For further information, please contact:
On behalf of the Board of Directors,
Sheldon Bennett, CEO & Director
Tel: 516-222-2560
Email: investors@dmgblockchain.com
Web: www.dmgblockchain.com
For Investor Relations:
investors@dmgblockchain.com
For Media Inquiries:
Chantelle Borrelli
Head of Communications
chantelle@dmgblockchain.com
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