OTTAWA, ONTARIO--(Marketwired - April 9, 2015) -
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Focus Graphite Inc. ("Focus" or the "Company") (TSX VENTURE:FMS)(OTCQX:FCSMF)(FRANKFURT:FKC) announced today the launch of a feasibility study for the construction of a transformation plant for value-added graphite products in Sept-Iles, Quebec. The company's aim is to become the first Canadian producer and exporter of technology grade graphite to meet the rising global demand for highly purified and shaped graphite used to manufacture anodes for lithium-ion rechargeable batteries, targeted specifically for use in hybrid and electric vehicles for the growing energy storage market.
The timing of the Company's announcement coincides with the launch of Quebec Government's Plan Nord action plan for 2015-2020 - its long-term economic and social development vision to sustainably develop the northern Quebec territory between now and 2035. Focus is honoured to be one of the companies invited to attend the re-launch event of Quebec's Plan Nord.
As a stakeholder in Plan Nord, Focus Graphite is an advanced stage flake graphite mine development company and sole owner of the Lac Knife, Quebec mining project, located 30 km south of Fermont, near the Quebec-Labrador border. Graphite produced from the proposed Lac Knife mine can be sold in conventional graphite markets, but the superior quality of the graphite produced presents a greater opportunity to supply technology grade graphite to re-chargeable battery markets and portable electronic devices.
In May 2014 and in February 2015, the Company published its battery test results performed with Lac Knife spherical graphite. Those test results led to Focus' decision to proceed with its formal evaluation of a high value graphite production plant. Currently, tests of the Company's value added materials are ongoing with potential customers. Focus has also completed positive low-temperature thermal purification tests and other physical sizing and shaping methodology tests that form the basis for the value added graphite plant feasibility study now in progress.
The Lac Knife project has support from the local communities and a pre-development agreement with the Innu First Nation of Uashat mak Mani Utenam ("ITUM") that was announced in October, 2014. Focus Graphite met with local communities and key stakeholders during the mine feasibility study to be able to adjust the project to address concerns. These meetings will continue throughout the life of the mine.
Environmental sustainability throughout the Company's mine-to-market value chain is critical to Focus' future customers. Both the Lac Knife and Sept-Iles development projects will be powered by clean energy supplied by Hydro-Quebec that will in turn supply clean, environmentally sustainable materials to the green energy sector.
The growing demand for Li-ion batteries from electric vehicles and the energy storage market associated to solar and wind energy creates market opportunities for value-added graphite products. In addition, market demand for graphite foils that are used to dissipate heat in portable electronic devices such as cell phones, computers, tablets and laptops is also growing.
Because of that anticipated demand, coupled with forecasted lower levels of production and export of graphite from China, graphite is now considered a critical material by the United States and the European Union.
Meanwhile, Focus continues to advance its $166 million structured project financing for the Lac Knife mine development project and discussions to secure off take agreements for the Li-ion battery industry and other potential markets are ongoing. In August 2014, Focus Graphite published its positive feasibility study of the Lac Knife mine and concentrator and submitted its social and environmental impact assessment with the Quebec Government in November 2014.
Following completion of the graphite transformation Feasibility Study in 2015, Focus will make a definitive schedule for the mine project and the transformation plant. Third party analysts estimate the price of spherical graphite that is produced from natural flake graphite at $8,000 per tonne.
Qualified Persons
Don Baxter, P. Eng., Focus President & Chief Operating Officer, is a Qualified Person as defined by NI 43-101 guidelines, has reviewed and approved the technical content of this news release.
About Focus Graphite
Focus Graphite Inc. is an emerging mining development company with an objective to produce value added products initially for the lithium ion battery market from the Lac Knife graphite deposit located south west of Fermont, Quebec. The Lac Knife project hosts a NI 43-101 Measured and Indicated Mineral Resource Estimate(i) of 9.6 million tonnes (432,000 tonnes Measured and 9,144,000 tonnes Indicated) grading 14.77% graphitic carbon (Cg) as natural flake graphite with an additional Inferred Mineral Resource Estimate(i) of 3.1 million tonnes grading 13.25% Cg. Focus' goal is to assume an industry leadership position by becoming a low-cost producer of technology-grade graphite. The Feasibility Study filed with SEDAR on August 8, 2014 for the Lac Knife Project indicates the project is economically viable and has the potential to become a low cost graphite producer based on 7.86 million tonnes (429,000 tonnes Proven and 7,428,000 tonnes Probable) of Proven and Probable Reserves grading 15.13 Cg. On May 27, 2014 the Company announced the Potential for High Value Added Sales in the Li-Ion Battery Sector following battery coin cell tests performed on Lac Knife Spherical Graphite ("SPG"). Testing measured the performance metrics and confirmed Focus' capability to tailor lithium ion battery anode grade graphite and value added products to meet the most stringent customer specifications. Focus Graphite is a technology-oriented enterprise with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.
(i) Mineral resources are not mineral reserves and do not have demonstrated economic viability
Forward Looking Statement
This News Release contains "forward-looking information" within the meaning of Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: (i) volatile stock price; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with exploration, development and operations of mineral deposits; (v) the risk associated with establishing title to mineral properties and assets; (vi) the risks associated with entering into joint ventures; (vii) fluctuations in commodity prices; (viii) the risks associated with uninsurable risks arising during the course of exploration, development and production; (ix) competition faced by the Company in securing experienced personnel and financing; (x) access to adequate infrastructure to support mining, processing, development and exploration activities; (xi) the risks associated with changes in the mining regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) risks related to potential conflicts of interest; (xv) the reliance on key personnel; (xvi) liquidity risks; and (xvii) the risk of potential dilution through the issue of common shares.
Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued exploration activities, no material adverse change in metal prices, exploration and development plans proceeding in accordance with plans and such plans achieving their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations and exploration plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this News Release, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy of this release. |