Great Lakes Secures Financing for Matheson

Great Lakes Graphite Inc of Toronto, ON has entered into an agreement with F2 Capital of Lincoln, MA to provide project funding for the recommissioning of the Matheson, ON micronization plant. The financing has been structured as a debenture, that provides debt financing of CDN$750,000. Earlier this year, Great Lakes entered into a five-year agreement with DNI Metals Inc to supply graphite concentrate to the facility. Paul Gorman, Great Lakes’ CEO, said, “This facility addresses the immediate capital requirements of the Matheson micronization facility through the commissioning stage. The terms of the financing provide Great lakes with maximum flexibility to complete the work required in Matheson without an onerous debt load and with minimal dilution. Our top priority is to achieve cash flow from micronization as soon as possible. Identifying the right financing partners who understand this focus has helped expedite the process.” Great Lakes has also completed an inaugural Mineral Resource Estimate for its 100%-owned Lochaber graphite project near Buckingham, QC. The company reports an inferred resource of 4,091,000 tonnes at 4.01% using a cut-off grade of 2.45% Cg. Northern Graphite Corp of Ottawa, ON has filed a preliminary short form prospectus with securities authorities in BC, Alberta, Ontario, and Nova Scotia for a proposed public offering designed to raise gross proceeds of CDN$2.5 million. The net proceeds will be used to fund permitting for the construction and operation of a graphite mine at Bissett Creek, ON, to conduct additional product qualification work to further develop its technologies for purifying graphite and making spherical graphite, and for general working capital. Mason Graphite Inc of Laval, QC has selected the Jean-Noel Tessier Industrial Park in Baie-Comeau, QC as the site for its proposed graphite processing plant. The site infrastructure is expected to include a 50,000 tons/year processing plant, maintenance buildings, offices, and a tailings pond. Construction is expected to take place in 2016. Benoit Gascon, Mason’s CEO, said, “It is fundamental for Mason Graphite to install the processing plant in this region in order to maximize the profitability of the project. The three sites that were studied all met this first essential criterion. Then we considered the minimal impact on the environment and the emission of greenhouse gases, the proximity of suppliers and subcontractors, the potential pool of local labor, the proximity of emergency services and construction and operation costs. We are very pleased with the selected site.” Flinders Resources Ltd of Vancouver, BC says its Woxna mine in Sweden is undergoing a scheduled summers maintenance shutdown, and will not commence meaningful production until graphite market conditions improve. According to Flinders, declining graphite demand has pushed prices to a four year low of US$700/tonne. Focus Graphite Inc of Ottawa, ON has entered into off-take agreements with Grafoid Inc. The first off-take agreement commits Grafoid to acquire up to an annual maximum of 1,000 tonnes of high purity (98.7% Cg), large flake graphite concentrate for ten years. Focus’ Lac Knife, QC graphite project is projected to produce 14,606 tonnes/year of high purity large flake concentrate. The second off-take agreement commits Grafoid to acquire up to 25,000 tonnes of 98.3% Cg, large flake graphite concentrate for 10 years, representing up to 56.4% of the projected annual production of 44,300 tonnes (all flake sizes). Gary Economo, Focus’ CEO, said, “The strong relationship and strategic alignment between the two companies is reflected in these agreements. Focus Graphite benefits from a substantial ongoing future revenue stream while Grafoid is assured a secure supply to meet customer needs.” Focus is the largest single shareholder in Grafoid with 7.8 million common shares valued at CDN$39 million.

Volume 29 issue 12

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