Graphite One 2023 Year in Review Graphite One Closes Landmark 2023 Debt Free, Two U.S. Department of Defense Grants, New Strategic Investor and U.S. Government Confirmation that Graphite Creek Deposit is "among the largest in the world'
Graphite One 2023 Year in Review
Graphite One Closes Landmark 2023 Debt Free,
Two U.S. Department of Defense Grants, New Strategic Investor
and U.S. Government Confirmation that Graphite Creek Deposit is "among the largest in the world'
Accelerated Path-to-Production Objectives Set for 2024
VANCOUVER, BC
,
Jan. 2, 2024
/CNW/ -
Graphite One Inc.
(TSX-V: GPH) (OTCQX: GPHOF)
("Graphite One", the "Company", or "G1")
is pleased to
provide the Company's 2023 year in review and a look forward to its objectives for 2024.
2023 Highlights:
G1 receives first Department of Defence ("DoD") grant,
US$37.5 million
: After 2022 designation of graphite as a Defense Production Act Title III
material, Graphite One awarded
US$37.5M
DoD grant to accelerate Feasibility Study
G1 receives second DoD grant,
US$4.7 million
: To develop a domestically sourced graphite fire foam suppressant, to meet congressional mandates of
replacing legacy suppressants known to be both hazardous to the environment and human health
Alaska's
Bering Straits Native Corporation
("BSNC") makes strategic investment in G1 for up to
US$10.4M
Taiga acquires Net Smelter Production Royalty
, makes G1
debt-free
heading into 2024
US Geological Survey
confirms Graphite Creek as the largest flake graphite deposit in the U.S. and "among the largest in the world"
Production of sample materials
of
Alaska
natural graphite and synthetic graphite for testing by a U.S. National Lab and EV end-users
Accelerated Drilling Program
: DoD grant enables 2023 drilling program four times larger than in 2022; 52 of 52 resource holes intercept graphite
Graphite One's production is expected to qualify under the
Inflation Reduction Act
("IRA") tax credits in both categories, based on U.S. Treasury/Department
of Energy guidance and received strong support from
Alaska
elected officials
"2023 was a year of major milestones for Graphite One," said
Anthony Huston
, Graphite One's President and CEO. "We were awarded two Department of
Defense grants, the USGS once again validated the significance of the Graphite Creek deposit, and we welcomed a strategic investment from
Alaska's
Bering
Straits Native Corporation, approved unanimously by BSNC's Board. We also quadrupled this year's drilling program year-over-year, made possible by the DoD
grant. 52 of 52 holes drilled in the summer program intercepted graphite, proving the excellent continuity of near surface, flat lying graphite mineralization. We
commenced delivering samples of both natural and synthetic graphite, materials essential to EV battery anodes, to potential end-users and a U.S. National Lab for
further development of end products. And with the sale of the NSR and the continued support from Taiga, G1 is
debt free
heading into 2024."
"It is a testament to our strategic plans and talented G1 team and Board aiming to fill the lack of battery grade graphite material in
the United States
."
Mr. Huston continued "We have incredible momentum and believe we are very well positioned to accelerate our path-to-production schedule."
2024 Accelerated Path-to-Production Objectives
Early-stage Commercial Synthetic Graphite Production
.
Subject to financing and permitting requirements, Graphite One enters 2024 planning an early-stage
commercial facility to complete a finishing and coating line for synthetic graphite by late 2025, with Phase 1 production of 25,000 tonnes of synthetic anode
material by mid-2026 and production growth from then on as market demand requires.
1Q 2024: Submission of DoE Proposal for Early-Stage Commercial Synthetic Graphite Anode Facility
.
G1 intends to submit a proposal to the U.S.
Department of Energy ("DoE") seeking a grant for a precursor development plant and an early-stage commercial synthetic graphite anode facility.
"Management currently anticipates construction and commissioning costs are estimated at
US$430 million
subject to any unforeseen delays or varied market
conditions," said Mr. Huston. "This is planned to be a direct path to revenue, even as we continue to develop our Graphite Creek natural graphite deposit."
1Q 2024: Site Selection for the Graphite Anode Material Production Facility
.
The site will be in the contiguous
United States
, in keeping with G1's complete
U.S.-based supply chain strategy.
1Q 2024: Completion of Graphite One/Sunrise TLA.
The Technology License Agreement with Sunrise (
Guizhou
) New Energy Material Co. Ltd.
("Sunrise") (the "TLA") to license technology to be used in a planned graphite anode material production facility and is intended to comport with the U.S.
Treasury/Department of Energy federal tax credit guidance.
4Q 2024: Completion of Feasibility Study
. With DoD Defense Production Act funding, G1 remains on track to complete the Feasibility Study ("FS") in Q4
2024, a full year ahead of the Company's initial schedule.
The Company reported progress in 2023 on the following fronts:
Graphite One Awarded
US$37.5 Million
Defense Production Act ("DPA") Title III Grant
In
July 2023
, after the 2022 Presidential Determination designating graphite as a Defense Production Act Title III material "essential to the national defense,"
Graphite One was awarded a
US$37.5 million
grant from the Department of Defense to accelerate the Company's Feasibility Study, cutting completion time for
the FS by a full year to Q4 2024. The drawdown of the grant is contingent upon the Company's obligation to raise an equivalent dollar-for-dollar amount to
complete the Feasibility Study.
"This investment to increase domestic capabilities for graphite exemplifies [DoD's] Industrial Base Policy's commitment to building a resilient industrial base to
meet current and future national defense requirements," said Dr. Laura Taylor-Kale, DoD Assistant Secretary for Industrial Base Policy. "The agreement with
Graphite One (
Alaska
) is in furtherance of the Defense Department's strategy for minerals and materials related to large-capacity batteries
1
."
Graphite One Awarded
US$4.7 Million
Contract by U.S. Department of Defense's Defense Logistics Agency to Develop Graphite-
Based Foam Fire Suppressant
In
September 2023
, G1 was awarded a second DoD grant,
a
US$4.7 million
contract from the U.S. Department of Defense's Defense Logistics Agency ("DLA")
to develop a graphite and graphene-based foam fire suppressant as an alternative to incumbent PFAS fire-suppressant materials, as required by U.S. law.
"Graphite One is pleased to begin work on this Defense Logistics Agency project, which responds to the legally-mandated requirement to develop a new
alternative to long-standing foam fire suppressants which are known to have toxic impacts on human health and the environment," said
Anthony Huston
, President
and CEO of Graphite One. "This DLA contract underscores the importance of graphite for innovative technology applications beyond the renewable energy
markets – an important part of Graphite One's advanced graphite materials strategy."
The work is being undertaken with Graphite One's project partner, Vorbeck Materials Corp., an experienced defense contractor developing advanced graphene
and graphite applications.
2023 Financings – Graphite One Welcomes Strategic Investment from Bering Straits Native Corporation and Warrant Exercises
During 2023, Graphite One received proceeds of
US$13.3 million
from the exercise of warrants by the warrantholders and a
US$2.0 million
initial private
placement
by BSNC.
In
September 2023
,
Graphite One
announced a strategic investment from BSNC for up to
US$10.4 million
. Under the terms of the agreement, adopted by a
unanimous vote of the BSNC Board, BSNC made an initial investment of
US$2.0 million
in Graphite One, with an option to invest an additional
US$8.4 million
,
including the exercise of warrants, fully supporting the development of the Graphite Creek deposit.
"This is not just an investment in Graphite One, it is a long-term investment in our region. We at BSNC have watched for years as Graphite One has worked to
advance the Graphite Creek project and become a friendly neighbor in the region," said
Dan Graham
, BSNC Interim President and CEO. "Graphite One has told
us of its intent to develop an environmentally responsible project and provide an exciting economic opportunity for the region that hopefully will play a crucial role in
the nation's transition to a clean energy future. This is at the heart of our Board's unanimous support of the project
2
."
Formed in 1972, BSNC is the regional Alaska Native Corporation ("ANC") for the Bering Strait region, which includes the
Seward Peninsula
in
Western Alaska
and
the coastal lands surrounding Norton Sound. The Graphite Creek Project is located on State and private land in the BSNC region.
As part of the agreement, Graphite One and BSNC will partner on continued regional and community development.
2023 Financing – Graphite One Enters Into Loan Agreement of up to
US$5 million
with Taiga Mining Company Inc.
In
July 2023
, Graphite One and its wholly owned subsidiary, Graphite One (
Alaska
) Inc. ("G1
Alaska
") entered into an unsecured loan agreement for advances up
to
US$5 million
(the "Loan") with Taiga Mining Company Inc. ("Taiga"), its largest shareholder. The Loan matures on
July 19, 2024
and the interest on the
outstanding balance is accrued at an interest rate of twelve (12) percent per annum. As consideration for the Loan being accessible to the Company, G1
Alaska
granted Taiga an option to acquire a Net Smelter Production Royalty interest ("NSR") in 0.25% increments for every
US$1,250,000
advanced up to a maximum of
one (1) percent on the 133 Alaska state claims owned or leased by Graphite One, which the Company bought back from the original royalty holder for
approximately
US$450,000
(refer to press release dated
June 20, 2023
,
Graphite One Closes the Buyback
of Net Smelter Production Royalty)
. The option was
exercised in
December 2023
and the outstanding balance on the Loan of
$5.0 million
and accrued interest of
$0.22 million
was deemed to be the consideration
paid for the purchase of the NSR.
The NSR commences on the first day of the month in which the first concentrate is produced from certain of the mineral claims and lasts for a period of 20 years.
With the sale of the NSR and the continued support from Taiga, the Company is debt free heading into 2024.
USGS Again Confirmed Graphite Creek as U.S.'s Largest Graphite Deposit and "among the largest in the world"
In
March 2023
, G1's Graphite Creek resource was again confirmed as the largest known graphite deposit in
the United States
by the U.S. Geological Survey
("
USGS
") and "among the largest in the world."
3
"The new USGS report underscores our confidence that Graphite Creek is truly a generational strategic resource," said Mr. Huston in response to the new USGS
report. "It anchors our supply chain strategy – from our mine to our planned advanced materials manufacturing plant and our recycling facility – to build a 100%
U.S.-based graphite supply chain."
Expansion of Measured and Inferred Resource at Graphite Creek by 15%, Based on Full Analysis of 2022 Drilling Results
In February and
March 2023
, analysis of the 2022 drilling increased Graphite One's Graphite Creek Measured and Indicated Resource by 15.5%. The Measured
and Indicated Resources now stand at
37.6 M
tonnes at 5.14% graphite, with an Inferred Resource of
243.7 M
tonnes at 5.07% graphite.
The Company also reported that resource holes drilled 2 km east of previous drilling and 4 km west of the PFS pit boundary showed significant intervals above
cut-off grade, indicating that the Graphite Creek resource remains open east and west.
U.S. National Lab Collaborations
In
January 2023
, G1 announced collaborations with two of the DoE's National Labs. The Company concluded a Material Transfer Agreement with
Pacific Northwest National Laboratory ("PNNL") to test anode active and other materials to verify conformity to EV battery specifications and delivered Graphite
Creek sample material to Sandia National Laboratories to test for the occurrence of additional Critical Minerals and assess recovery potential as part of Sandia's
green extraction processing work, conducted under the auspices of Sandia's Climate Change Security Center.
Anode Samples Manufactured from G1 Alaska Natural Graphite
In
April 2023
, G1 announced that it had received active anode material samples produced from Graphite One's
Alaska
graphite by Sunrise. The sample material
and the sample specification data have been provided to PNNL for additional testing, and sample material has been sent to a leading Electric Vehicle (EV)
manufacturer for evaluation.
2023 Drilling Program Quadruples Footage Drilled in 2022, intersecting graphite in 52 of 52 holes
With the support of the DoD DPA grant, Graphite One carried out a large-scale drilling program, quadrupling the total number of feet drilled in 2023 compared to
2022. All 52 resource holes intersected visual graphite mineralization and continued to demonstrate exceptional consistency of a shallow, high-grade graphite
deposit that remains open both to the east and west of G1's Graphite Creek deposit.
The assay results on the remaining drill holes from the 2023 Field Program will be released in early 2024.
Graphite One Delivered Synthetic Graphite Material Key to Potential End-Users
In early
December 2023
,
Graphite
One
announced the delivery of synthetic graphite anode material samples for analysis by U.S.-based global end-users. Three
of the active anode material samples delivered are each designed to meet different lithium-ion battery requirements: high energy capacity above 360 mAh/g; fast
charging above 4C; and cycle life above 6,000 cycles, respectively.
These material deliveries are consistent with Graphite One's updated plan to first construct a synthetic anode material production facility to produce a range of
synthetic anode materials. A natural graphite anode material production line would later be added, in time to receive natural graphite from Graphite Ones's
Graphite Creek deposit near
Nome, Alaska
once it is permitted and operating. Ultimately Graphite One intends to produce both synthetic and natural graphite
anode materials for lithium-ion battery applications in North America.
The synthetic graphite samples were prepared for Graphite One by Sunrise. The Company and Sunrise are currently negotiating the TLA to share expertise and
technology for the design, construction, and operation of Graphite One's proposed U.S.-based graphite material manufacturing facility. The TLA is intended to
comply with the requirements of the IRA so that the use of the licensed technology itself to make Graphite One's anode materials would not affect its customers'
eligibility to qualify for IRA tax credits. Sunrise had previously prepared natural graphite anode materials for Graphite One using Graphite Creek graphite
concentrate.
"With the U.S. currently not producing any natural and synthetic anode materials, Graphite One has formulated a fast-track path-to-production strategy jump-
starting our battery anode material production," said Mr.
Anthony Huston
. "In contrast to the typical resource development track, our strategic plan is to make
Graphite One a synthetic anode material producer while Graphite Creek moves through permitting and into production. Ultimately, Graphite Creek's natural
graphite would supply our anode material facility alongside our synthetic production, to deliver a full range of natural and synthetic anode materials to EV
customers, 100% manufactured in
the United States
."
Strong Support from Alaska Elected Officials
G1's project continued to receive strong support from the Alaska Congressional delegation of Senators
Lisa Murkowski
and
Dan Sullivan
and Congresswoman
Mary Peltola
as well as
Alaska
Governor
Mike Dunleavy
. In
July 2023
, Senator Murkowski took the Senate floor to express support for Graphite One and its
development of the Graphite Creek deposit near
Nome, Alaska
.
In her address, Senator
Lisa Murkowski
stated, "I've always supported Graphite One and what they're doing in
Alaska
, but after my site visit there on Saturday,
I'm convinced that this is a project that every one of us, those of us here in the Congress, the Biden Administration, all of us needs to support. Graphite One's
vision is to build a complete domestic supply chain for natural graphite. Their project would be anchored by responsible mining of the Graphite Creek deposit
producing tens of thousands of metric tons a year, but it would also extend to a battery anode manufacturing facility in
Washington State
which would be co-
located with a battery recycling plant, which is why their CEO
Anthony Huston
often describes Graphite One as a technology company that mines graphite. This,
Mr. President, is a major opportunity for us."
The full address can be found here.
Graphite
One Donates
$130,000
to Local Communities
Graphite One donated
$30,000
to the
Nome
Emergency Shelter Team which provides shelter services to the local community of
Nome
, Alaska. The Company
also worked with Artic Access, a non-profit organization in
Nome, Alaska
whose employees are local community members that have completed a rehabilitation
program to supply camp janitorial services to our camp operations during the summer drilling program. "These people did a terrific job, and we look forward to
working with Artic Access and their team in the future" said
Mike Schaffner
, Senior VP, Mining.
Graphite One has also donated
$50,000
each to the communities of Teller and Brevig Mission for support projects that benefit the quality of life of the community
members.
About Graphite One Inc.
GRAPHITE ONE INC. (TSX
V: GPH; OTCQX: GPHOF) continues to develop its Graphite One Project (the "Project"), with the goal of becoming an American
producer of high grade anode materials that is integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine,
process and manufacture high grade anode materials primarily for the lithium
ion electric vehicle battery market. As set forth in the Company's 2022 Pre-
Feasibility Study, potential graphite mineralization mined from the Company's Graphite Creek Property is expected to be processed into concentrate at a graphite
processing plant. The proposed processing plant would be located on the Graphite Creek Property situated on the
Seward Peninsula
about 60 kilometers north of
Nome
, Alaska. Graphite anode materials and other value
added graphite products would be manufactured from the concentrate and other materials at the
Company's proposed advanced graphite materials manufacturing facility expected to be located in the contiguous United States. The Company intends to make a
production decision on the Project upon the completion of a Feasibility Study.
On Behalf of the Board of Directors
"Anthony Huston" (signed)
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 adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be forward-looking statements. All statements in this release, other than statements of
historical facts, that address the expectations of Graphite One to produce both natural and synthetic graphite anode materials used in lithium-ion battery
applications, the anticipated timing for production and amount produced of synthetic graphic, the outcome of any grant submissions to the DoE, location and
timing for a graphite materials manufacturing facility, execution of the TLA with Sunrise, receipt of regulatory approvals, exploration drilling, exploitation
activities and events or developments that the Company expects, are forward-looking statements. Although the Company believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such statements are no guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in
forward-looking statements include the ability for Graphite One and Sunrise to enter into a TLA, the actual compliance with the IRA that the TLA is anticipated to
address, actual costs of construction and commissioning, receipt of all necessary regulatory approvals, market prices, exploitation and exploration successes,
continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes
in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general
economic, market or business conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date
it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, except as
required by applicable securities laws. For more information on the Company, investors should review the Company's continuous disclosure filings that are
available at
www.sedarplus.ca
.
____________________________________
1
https://www.graphiteoneinc.com/graphite-one-awarded-37-5-million-department-of-defense-grant-under-the-defense-production-act/#:~:text=This%20investment%20to,large%2Dcapacity%20batteries
2
https://www.graphiteoneinc.com/graphite-one-welcomes-strategic-investment-from-bering-straits-native-corporation-bsnc-creates-regional-community-development-program/#:~:text=This%20is%20not,of%20the%20project
3
https://www.usgs.gov/news/technical-announcement/
usgs-updates-mineral-database-graphite-deposits-united-states
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For further information:
For more information on Graphite One Inc., please visit the Company's website, www.GraphiteOneInc.com or contact: Anthony Huston,
CEO, President & Director, Tel: (604) 889-4251, Email: [email protected]; Investor Relations Contact: Tel: (604) 684-6730,
CO: Graphite One Inc.
CNW 07:00e 02-JAN-24