Graphite One Purchases Net Smelter Production Royalty
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GRAPHITE ONE
PURCHASES NET SMELTER PRODUCTION ROYALTY
October 15, 2020 – Vancouver, British Columbia – Graphite One Inc. (GPH: TSX-V; GPHOF:
OTCQB) (“Graphite One” or the “Company”) announces the purchase of a net smelter
production royalty.
PURCHASE OF NET SMELTER PRODUCTION ROYALTY
On October 13, 2020, the Company entered into an agreement (the “NSR Purchase Agreement”)
to acquire a 2% net smelter production royalty (NSR) against certain claims that are held by the
Company, and which make up a part of the Company’s Graphite Creek Project in Alaska. Under
terms of the NSR Purchase Agreement, the Company will issue 2, 500,000 common shares at a
price of CA$ 0.40 and 2,500,000 common share purchase warrants, with an exercise price of
CA$0.50 and a term of five years, all subject to TSX Venture Exchange (“TSXV”) approval. The
warrants include an accelerated exercise clause whereby , in the event the Company’s common
shares trade at a volume of CA$0. 65 or more on the TSXV or the Toronto Stock Exchange (if so
listed at such time) for 10 consecutive trading days, the Company may, at its option, issue a press
release and a notice to the warrant holder for the expiry of the warrants on the date that is 45
days from the press release and notice and the warrant holder may exercise the warrants during
this 45 day period but no later than the expiry date. The NSR applied to future production from
28 Alaska state claims owned by the Company. The Company’s option to purchase the NSR
expires January 24, 2021.
“We anticipate that our purchase of the Net Smelter Royalty will have a positive impact on our
IRR and NPV, which will be reflected in the financial projections of our Pre-Feasibility Study (PFS),”
said Anthony Huston, CEO of Graphite One , “and we appreciate the vote of confidence sent by
making this purcha se a share-based transaction.” The Company anticipates completion of the
PFS during the first half of 2021.
About Graphite One Inc.
GRAPHITE ONE INC. (GPH: TSX-V; GPHOF: OTCQB) continues to develop its Graphite One Project
(the “Project”), whereby the Company could potentially become an American producer of high
grade Coated Spherical Graphite (“CSG”) that is integrated with a domestic graphite resource.
The Project is proposed as a vertically integrated enterprise to mine, process and manufacture
high grade CSG primarily for the lithium-ion electric vehicle battery market. As set forth in the
Company’s Preliminary Economic Assessment, 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. CSG and
other value-added graphite products, would likely be manufactured from the concentrate at the
Company’s proposed graphite product manufacturing facility, the location of which is the subject
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of further study and analysis. The Company intends to make a production decision on the Project
once a feasibility study is completed.
ON BEHALF OF THE BOARD OF DIRECTORS
"Anthony Huston” (signed)
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
1-604-684-6730
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.
Cautionary Note Regarding Forward-Looking Statements
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, are forward-looking
statements.
Generally, forward -looking information can be identified by the use of forward-looking
terminology such as “proposes”, “expects”, or “is expected”, “scheduled”, “estimates”, “projects”,
“intends”, “assumes”, “believes”, “anticipates”, “indicates” or variations of such words and
phrases that state that certain actions, events or results “may”, “could”, “would”, “might” or “will
have”, “occur” or “be achieved”.
Forward-looking information in this release includes, but is not limited to, statements regarding
approval of the TSXV of the issuance of the securities as consideration for the purchase of the
NSR, the stage and progress of development of the Graphite Creek Project including the ability to
actually produce spherical graphite, results from the 2019 field program, the ability to produce a
Prefeasibility Study in the first half of 2021, ultimate further and final results of additional test -
work, estimated capital and sustaining costs and the availability of equipment, labour and
resources required, the anticipated applications of g raphite in high -tech, clean tech, energy
storage and national security applications and all other anticipated applications, international
demand and ability to transport and enter into such markets, are all forward -looking
statements. Although the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not 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
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forward-looking statements include: (i) volatile stock price, (ii) the results of the product
development test work may not be indicative of the advancement of the pro ject as anticipated,
or at all, (iii) market prices, (iv) exploitation and exploration successes, (v) continuity of
mineralization, (vi) uncertainties related to the ability to obtain necessary permits, licenses and
title and delays due to third party oppo sition, (vii) changes in government policies regarding
mining and natural resource exploration and exploitation, (viii) competition faced in securing
experienced personnel, access to adequate infrastructure to support mining, processing,
development and ex ploration activities and continued availability of capital and financing, and
(ix) 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.sedar.com.