Northern Graphite Raises Only Half of Target Funds

Northern Graphite Corp of Ottawa, ON has closed its short form prospectus offering having raised gross proceeds of CDN$1.26 million versus an original target of CDN$2.5 million. The net proceeds will be used to fund development of the company’’s graphite mine at Bissett Creek, ON. Certain insiders of the company directly or indirectly acquired about 15% of the offering. Alabama Graphite Corp (AGC) of Vancouver, BC has announced the closing of a private placement, led by First Republic Capital Corp, to raise gross proceeds of CDN$2.875 million. The net proceeds will be used towards a drilling program on the company’’s Coosa and Bama graphite projects in Alabama, the preparation of an updated mineral resource estimate for the Coosa project, metallurgical testing both at the Coosa and Bama projects, a preliminary economic assessment on the Coosa project, value-added graphite & graphene initiatives and for working capital. Canada Strategic Metals Inc of Montreal, QC and Lomiko Metals Inc of Vancouver, BC have received two drilling permits for 5,000 metres each at the La Loutre crystalline flake graphite properties in Quebec. When the drilling program is complete, the property will be assessed for a resource and if warranted a pre-economic assessment will be conducted. A Paul Gill, Lomiko’s CEO, said, “Approximately 10,000 metres of drilling are planned at La Loutre. Drilling should reach a vertical depth of no more than 150 metres, the ‘rule of thumb’ physical depth limit of a standard open pit. Our goal is to become a low-cost producer of graphite in Quebec.” Valence Industries Ltd of Australia reports that production at its Uley graphite processing plant in South Australia has increased progressively since the start of production last month. The plant is currently operating at 15 tonnes/hour and producing more than 71% in the larger flake fractions from existing stockpiles. Valence is pleased with the performance of the plant with purity levels exceeding 89%. Purity levels are expected to continue to increase as the plant moves towards its nameplate capacity of 20 tonnes/hour in September. The company is building inventories of processed graphite to supply existing sales contracts. Sales shipments are expected to commence from the site over the next six weeks and will increase progressively as production rates increase.

Volume 29 issue 13

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