SRG Mining Announces Strategic Corporate Update Updated Feasibility Study Underway To Double Mine Production Second Transformation CSPG Preliminary Economic Assessment Also Awarded
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SRG Mining Inc.
1320 Graham, Suite 132
Ville Mont-Royal, Québec
H3P 3C8
SRG Mining Announces Strategic Corporate Update
Updated Feasibility Study Underway To Double Mine Production
Second Transformation CSPG Preliminary Economic Assessment Also Awarded
PRESS RELEASE FOR IMMEDIATE RELEASE
Montreal, Quebec, May 18, 2022 - SRG Mining Inc. (TSXV: SRG) (“SRG” or the “Company”) today
announced further details on the strategic corporate plan to develop its Lola Graphite Project in the
Republic of Guinea (the “ Lola Project”) into a fully integrated supplier of battery anode material to
the European market. The integrated business model would result in the creation of a mine-to-market
active anode material producer, hosting a large high-purity graphite production mine and concentrator
in Africa and a value-added, coated spherical purified graphite (“CSPG”) conversion facility in Europe.
Two Studies Underway
The Company announced today the start of an independent, updated feasibility study (the “Updated
Feasibility Study” or “UFS”), which will include basic engineering, to confirm technical opportunities
and capital and operating costs for target initial production of 100,000 tonnes per annum (“tpa”) of
graphite as concentrate from the Lola Project. The UFS follows the 2019 Feasibility Study which was
prepared by DRA Global Limited (“DRA”).
Following extensive consultation with its partners, technical consultants, industry participants and
potential offtake partners SRG has concluded that an increase in concentrate production, from 50,000
tpa as disclosed in the 2019 Feasibility Study to 100,000 tpa, is expected to significantly increase
capital efficiency and project economics. The Updated Feasibility Study will also be prepared by DRA
and is scheduled to be completed in Q4 2022.
In parallel with the UFS the Company also announced today the start of an independent, preliminary
economic assessment ( “PEA”) of initial options for the start -up of a second transformation step to
produce CSPG from the Lola Project graphite concentrate. The PEA will be prepared by Dorfner
Analysenzentrum und Anlagenplanungsgesellschaft mbH (“Anzaplan”), a leading consultancy and
engineering company for industrial, specialty mineral and metal projects , based in Hirschau,
Germany. The PEA is scheduled to be completed in Q1 2023.
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An integral part of the PEA will be to update existing metallurgical test work on spheroidization,
purification and coating aspects to produce a high-quality CSPG product. The Company will provide
Anzaplan and its partners with part of its 10 tonnes bulk sample concentrate, which it has available
from previous pilot-scale metallurgical test work. The results of the additional metallurgical test work
will also provide valuable samples for future offtakers to accelerate the extensive product qualification
and test work required by cell manufacturers.
“These studies are a continuation of the previously announced strategy and will enable the Company
to advance discussions with both financial institutions as well as potential customers,” said Matthieu
Bos, President and Chief Executive Officer. “Given the projected surge in demand for graphite from
the electric-vehicle revolution and renewable energy technologies, the Lola Project will be of
significant strategic importance for auto makers and clean -energy companies looking to secure a
long-term, reliable supply of high-quality graphite.”
Financing and Offtake Discussions Progressing
The Company is advancing discussions with multiple parties who have expressed interest in providing
debt financing to advance SRG towards first production. Binding offtake offers have been received
for more than 50% of the initial 100,000 tpa graphite concentrate production.
SRG will provide further comment only if a specific transaction or process is concluded, or if further
disclosure is required or deemed appropriate. There can be no assurance that the Company will
pursue any transaction or that a transaction, if pursued, will be completed.
About SRG Mining
SRG Mining is a Canadian-based mining company focused on developing the Lola Graphite Project
located in the Republic of Guinea, West Africa. The Lola Graphite Project has a Probably Reserves
of 42Mt at a grade of 4.2% Cg. SRG aims to develop a fully integrated source of battery anode material
to supply the European lithium-ion and fuel cell markets. With attractive operating costs, proximity to
European end-markets and strong ESG credentials, the Company is poised to become a reliable
supplier while promoting sustainability and supply chain transparency. SRG is committed to generating
sustainable, long-term benefits that are shared with the host countries and communities where it operates.
About DRA Global Limited
DRA Global Limited (ASX: DRA | JSE: DRA) is a multi -disciplinary consulting, engineering, pr oject
delivery and operations management group predominantly focused on the mining and minerals
resources sector. DRA has expertise in mining, minerals and metals processing and related non -
process infrastructure including sustainability, water and energy solutions for the mining industry. DRA
delivers advisory, engineering and project delivery services throughout the capital project lifecycle
from concept through to operational readiness and commissioning as well as ongoing operations,
maintenance and shutdown services.
For additional information, please visit SRG’s website at www.srgmining.com.
Contact :
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Matthieu Bos
President & CEO
Email: [email protected]
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENTS
This press 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 “plan”, “result”, “confirm”, “target”, “increase”, “expect”,
“scheduled”, “enable”, projected”, “drive”, “aim”, “realise”, “growth”, “goals”, “continue”, “adv ance”,
“potential”, “will”, “demonstrate”, “deliver”, “believe”, or variations of such words and phrases or state
that certain actions, events or results "may", "could", "would" or "might". 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 and mine plans for the Company’s mining operations; (v) the risk associated with establishing
title to mineral properties and assets including permitting, development, operations and production
from the Company’s operations being consistent with expectations and projections; (vi) fluc tuations
in commodity prices, finding offtake takers and potential clients or enforcing such agreements against
same and other risks and factors described or referred to in the section entitled "Risk Factors" in the
MD&A of the Company and which is available at www.sedar.com, all of which should be reviewed in
conjunction with the information found in this news release.
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 fu ture 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 pl ans and may not be appropriate for other purposes.
Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking
information is given as of the date of this press release, and the Company does not undertake to
update such forward-looking information except in accordance with applicable securities laws.